Apple ordered to pay $118 million in back taxes in Japan

It's the second major tax bill to his Apple in recent months
 By 
Emma Hinchliffe
 on 
Apple ordered to pay $118 million in back taxes in Japan
Apple employees greet customers as they arrive to buy the new Apple iPhone 7 at the company's flagship store in Tokyo on September 16, 2016. Apple was hit with a $118 million tax bill the same day. Credit: kazuhiro nogi/AFP/Getty Images

Apple has been slapped with yet another tax bill, this time for $118 million in Japan.

The company was ordered to pay 12 billion yen, or about $118 million, in back taxes to the Japanese government, according to the Financial Times, which cited Japanese media reports.

The ruling holds Apple liable for withholding tax from a local subsidiary in Japan, which it paid to an Irish holding company.


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Apple's most recent high-profile bill was for $14.5 billion, or €13 billion, owed to Ireland, as ordered by a European Union commission.

The EU claimed that Apple's tax arrangement with Ireland allowed the company to avoid taxes on its profits. Apple is accused of funneling profits to a special subsidiary in Ireland, which the country supposedly agreed to barely tax.

The Financial Times said Apple has already paid the Japanese bill, citing local media.

The Japanese case centered on royalties for iTunes software built into the iPhone, the Financial Times said. Those royalties, subject to the 12 billion yen in back taxes, came to 60 billion yen.

Apple is fighting its EU tax bill with support from Ireland.

News of the Japanese ruling broke on the day of Apple's iPhone 7 launch.

Topics Apple iPhone

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Emma Hinchliffe

Emma Hinchliffe is a business reporter at Mashable. Before joining Mashable, she covered business and metro news at the Houston Chronicle.

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