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Reports: Toyota failed to declare US$50 million income in 3 years to 2004

Reports: Toyota failed to declare US$50 million income in 3 years to 2004

Japan's Toyota Motor Corp. failed to declare more than US$50 million income in three years through March 2004, news reports said Saturday.
Toyota _ the world's No. 2 automaker _ had undeclared income totaling about 6 billion yen (US$50.4 million; euro38.3 million), partly due to deals with its Australian and Brazilian subsidiaries, the Asahi and Yomiuri newspapers said, both citing unidentified people familiar with the matter.
Kyodo News agency carried a similarly sourced report, while the Mainichi newspaper ran an unsourced story in its Web edition.
The Nagoya Regional Taxation Bureau ordered Toyota to pay 2 billion yen (US$16.8 million; euro12.8 million) in back taxes and fines on the undeclared income, the reports said. Toyota has already corrected its tax returns, Kyodo News agency said, citing an unidentified source familiar with the matter.
Toyota appears to have exported auto components to the two subsidiaries at a discount, which the tax bureau judged in part as excessive, the reports said. The tax authorities said the excessive portion should have been recorded as income for the parent company, they said.
The Yomiuri and Kyodo quoted unidentified Toyota officials as saying _ without commenting on the specific case _ that the company "always pays its taxes as directed by the authorities, though differences in views may arise."
Phones rang unanswered at both the Nagoya taxation bureau and Toyota Saturday.


Updated : 2021-05-13 03:08 GMT+08:00