Sunday, July 05, 2009

Amazon in Tax Problem in Japan

Amazon may be 800 pound gorilla in Internet but it has fallen into some kind of trouble with tax matters in Japan. Well, the situation is a bit complicated. It is not a matter of tax evasion. Rather it is a matter of international trade. If you are interested about international trade and taxation then this matter should be of some interest to you.

Reuters reported:

But the company said the taxation was inappropriate and asked tax authorities in the United States and Japan to discuss whether the firm properly complied with the tax code in the bilateral tax treaty, the newspaper added.

It is matter of claim and counter claim. Amazon is saying that they have already paid the tax in USA for its income that Japanese government is claiming. On the other hand, Japanese tax officials are saying that Amazon has to pay $119 million in taxes for its operations in Japan.