Apple Japan hit with $105 million tax bill for selling iPhones to tourists

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Apple's Tokyo offices in Japan have received a bill of $105 million from Tokyo's Regional Taxation Bureau.

The bureau began its investigation last year, and found several unusual transactions that included a tourist purchasing several hundred devices at the Apple Store.

It found that tax-exempt sales for a period of two years were made by fraudulent duty-free purchases that would be resold for commercial purposes.

As reported by Kyodo News, the bureau has slapped Apple with a $105 million fine for underreported sales. As per the country's rules, only foreign visitors who purchase daily goods or souvenirs within six months of arriving in Japan to take them abroad can avail tax-free shopping.

The tax bureau also suspects that vendors want to take advantage of Japan's duty-free system by getting visitors to buy the products, and selling them abroad for profit.

As per the report, the bureau announced new administrative guidance in June for department stores, telling them to sell products separately after several cases of bulk buying of cosmetics and other products were discovered.

It included a case of seven Chinese nationals who used tourist visas to visit Japan in 2020, and bought several products in bulk including handbags and watches, to sell abroad for a profit.