Apple Japan was hit with a $98 million fine for failing to charge resellers and tourists with consumption tax.
Nikkei reported that authorities discovered the company failing to charge consumption tax to resellers. Bulk purchases regarding hundreds of iPhones in Apple Stores around the country were unannounced and strongly suggested that the buyer was a reseller.
Tourists who are staying for six months or less are exempt from taxes when they buy certain goods. However, the rule doesn’t apply to those who intend to resell the items they bought at a higher price. To remedy the situation, Apple Japan has already had a tax return amendment.
Japanese tax authorities have found 24,000 mislabeled transactions this year. Japan levied approximately 86.9 billion yen in penalties and taxes, which was 11 percent more than what it was five years before. In related news, Apple executives Greg Joswiak and Tim Cook recently concluded a trip to the country.