Muji parent Ryohin Keikaku caught million dollar tax dodge
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Muji store parent Ryohin Keikaku has been found to have dodged paying ¥7.5 billion (US$68.3 million) in tax by transferring taxable income to its operations in China, where it runs 256 outlets.
The Japanese retailer has been ordered by the courts to pay the required taxes, which have accrued since 2017, as well as around ¥2.1 billion ($19.1 million) in penalties.
In a statement, the firm said that although it holds a different view on the policy of double taxation, it has decided to pay the tax as assessed by the tax bureau.
Ryohin Keikaku has appealed to the tax authority in Japan to deal with its Chinese counterparts to avoid double taxation in future.
Questions & Answers
Q.How much tax did Ryohin Keikaku dodge and what additional penalties must they pay?
How much tax did Ryohin Keikaku dodge and what additional penalties must they pay?
Ryohin Keikaku dodged paying ¥7.5 billion (US$68.3 million) in tax. They must also pay around ¥2.1 billion ($19.1 million) in penalties, as ordered by the courts.
Q.What reason did Ryohin Keikaku give for this tax issue?
What reason did Ryohin Keikaku give for this tax issue?
The firm stated it holds a different view on the policy of double taxation. They transferred taxable income to their operations in China, where they run 256 outlets.
Q.What action has Ryohin Keikaku taken regarding future double taxation?
What action has Ryohin Keikaku taken regarding future double taxation?
Ryohin Keikaku has appealed to the tax authority in Japan. They want them to deal with their Chinese counterparts to avoid double taxation in the future.