Apple Japan faces $98 million in back taxes

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Apple’s Japan unit has been fined to pay 13 billion yen ($98 million) in additional taxes after it was found to have incorrectly exempted bulk sales of iPhones and other Apple devices to foreign tourists from the consumption tax.

These purchases, including at least one transaction involving an individual buying hundreds of phones at once, were discovered at some Apple stores.

While Japan allows tourists who stay in the country for less than six months to purchase items without paying the 10% consumption tax, this exemption does not apply to purchases for resale purposes.