Court orders retraction of back taxes on IBM Japan

May 09, 2014

A Tokyo court ordered authorities Friday to retract back taxes they had imposed on IBM's Japan unit for its alleged failure to declare some $4 billion in income.

In 2010, the Tokyo regional tax bureau slapped the back taxes, worth some 120 billion ($1.18 billion), on IBM Japan's holding company, IBM AP Holdings.

The bureau had insisted that the group generated losses by manipulating intra-group trade of IBM Japan shares so as to evade taxation.

But the holding company, denying the allegation that it failed to declare 400 billion yen ($3.9 billion) in income, filed a suit with the Tokyo District Court to seek the retraction of the taxes.

Presiding judge Kazuhiro Yagi said there was no ground to determine that the IBM group had attempted .

"We deem that the ruling has accepted our company's position," IBM Japan's public relations office said in a statement.

"IBM takes the taxpayers' responsibility very seriously and will continue fulfilling its tax obligations not only in Japan but also in every country it does business."

Explore further: IBM says will 'aggressively' contest India tax demand

add to favorites email to friend print save as pdf

Related Stories

IBM posts higher 4Q net income (Update)

Jan 21, 2014

IBM's fourth-quarter net income grew 6 percent, surpassing Wall Street's expectations even though revenue fell. Its shares fell in extended trading after the results came out—and CEO Ginni Rometty said she's recommending ...

Recommended for you

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

Apple starts iPhone 6 sales in key China market

Oct 17, 2014

Apple began selling its latest iPhone in China Friday, nearly a month after other major territories due to a licence delay by regulators, but it faces a tough battle with rivals led by Samsung in the crucial ...

Microsoft CEO launches diversity training effort

Oct 17, 2014

(AP)—Microsoft CEO Satya Nadella has again apologized to employees and announced in a company-wide memo that all workers will receive expanded training on how to foster an inclusive culture as he works to repair damage ...

Arguments made in ex-dictator's suit against game

Oct 17, 2014

(AP)—A judge has heard arguments from lawyer and former New York City Mayor Rudy Giuliani calling for the dismissal of a lawsuit filed against video game giant Activision by former Panamanian dictator Manuel Noriega.

User comments : 0