Kobe Steel, a major steel company, has revealed that it has been pointed out by the Osaka National Taxation Bureau that it has missed a declaration of more than 1.4 billion yen over sales commissions for industrial machinery in China.
According to the company, sales commissions paid to local agents for sales activities of industrial machinery in China were recorded as expenses, but the Osaka National Taxation Bureau pointed out that the declaration was omitted.
In the seven years from 2013 to 2019, it will amount to 1.42 billion yen.
The additional tax amount including the heavy additional tax is 310 million yen, which means that the company will pay an additional tax by next month.
The company says, "Although there were some disagreements, we decided to accept the indications of the national tax authorities. We will strive to pay taxes more appropriately in the future."