The Tokyo Metropolitan Government paid an additional 29 million yen in delinquent taxes due to a misinterpretation of the law and failure to pay consumption tax when purchasing masks that were provided free of charge to social welfare facilities as a countermeasure against the coronavirus. I made it clear that.
According to the Tokyo Metropolitan Government, four years ago, it purchased approximately 114 million masks imported from overseas from five domestic businesses for approximately 2.3 billion yen to provide free of charge to social welfare facilities as a countermeasure against the coronavirus.
At that time, the Tokyo Metropolitan Government understood that goods imported from overseas and donated to social welfare facilities were exempt from consumption tax, based on the provisions of the law, and did not pay consumption tax to the businesses.
However, later this year, because the contract was for the city to purchase masks from the importer, when consumption tax was incurred, the National Tax Agency pointed out that there was a misinterpretation of the law.
As a result, in addition to approximately 230 million yen in consumption tax, the Tokyo Metropolitan Government paid an additional 29 million yen to taxable businesses, including the amount equivalent to delinquent tax and additional tax for underreporting.
A Tokyo metropolitan government official said, ``At the time, we inquired with the National Tax Agency and other agencies as to whether or not consumption tax would be incurred, but we do not have any documentation to confirm whether they had sufficiently confirmed this.We are sorry that this resulted in additional expenditure from a precious financial resource.'' I am.