Facebook Japan corporation 500 million yen report omission point out August 29th 11:51
According to interviews with related parties, the Japanese tax corporation was pointed out that the Tokyo Taxation Bureau was missing a declaration of approximately 500 million yen, assuming that the Japanese corporation of Facebook had transferred the profits of the advertising business to an Irish corporation with a low tax rate. I understand.
It was the Japanese subsidiary of “Facebook” in the United States that operates the world's largest exchange site that pointed out the lack of declaration.
According to the person concerned, the Japanese corporation is doing business to an advertising company in the country, but the advertising fee from the customer was paid to the Irish corporation with a low tax rate.
The effective tax rate of Japanese corporate tax is approximately 30%, but Ireland is more than 12%, and Japanese corporations received compensation with a few percent added to their expenses as compensation to support operations from Irish corporations.
The Tokyo Metropolitan Tax Bureau has decided that the compensation of the Japanese corporation should be linked to the advertising fee, and that profits were transferred to Ireland, which has a low tax rate, and pointed out that there was an omission of approximately 500 million yen in the two years until December. did. Additional tax is expected to be as high as 110 million yen.
The Japanese subsidiary “Facebook Japan” has told NHK's interview that “we will refrain from commenting on individual tax audits”.
How to tax large IT companies that develop services across national borders has become a global issue. In January, Google's Japanese corporation transferred its profits to Singapore, which has a low tax rate. It has become clear that the National Tax Bureau has pointed out the lack of declaration.