SoftBank penalised for not reporting $1.25 million taxable income

Japan's tax authorities penalised SoftBank Group Corp's mobile carrier unit and ordered it to pay back taxes after it found the company hid about 140 million yen ($1.25 million) in taxable income, Yomiuri newspaper reported on Sunday. Tax authorities determined the unit, SoftBank Corp, had reduced taxable income by booking the amount as development expenses for the year ended in March 2015, the paper said.
Tax authorities found the company could not count the amount as expenses for that timing, as the project in question had not been completed then, the paper said. As a result, SoftBank was told to pay about 45 million yen in back taxes, the paper said.
Tax authorities also told SoftBank Corp that it had failed to report about 6 billion yen in income after it found the company did not properly count depreciation of telecommunication equipment, Yomiuri said. The company has already paid a total of 1.7 billion yen in back taxes, the paper said.
SoftBank Corp told the paper the under reporting of income was caused by the difference in timing of booking revenues and expenses and it had already submitted revised tax reports to the authorities after informing them about the different calculation. SoftBank and tax office officials were not immediately available for comment.