Tokyo Taxman Chasing Sony Computer Entertainment
Seems there are some ‘accounting errors’ to tune of $240 million.
SPOnG hates the taxman. He takes loads of our hard-earned and then goes and gives it to the stupid government to spend on pointless things like guns and tanks (er, don't forget schools and hospitals – Ed).
It seems that Sony also hates the taxman, as the company is contesting an order from the Tokyo Regional Taxation Bureau to pay a whopping ¥27.9 billion (US$239.9 million) in additional taxes on profits made from sales of products between its Japanese and overseas units.
How this oversight has happened is unclear. Perhaps Sony should get a better accountant?
The supposed unpaid taxes in question relate to sales in two areas of the business. Firstly, between Sony Computer Entertainment Inc. (SCEI) and Sony Computer Entertainment America Inc. (SCEA) between April 1999 and March 2005. Secondly, relating to transactions related to CD and DVD disc manufacturing operations with several overseas subsidiaries from April 2003 to March 2005.
The company, somewhat unsurprisingly, claims otherwise. In an official statement that reads: "Sony and SCEI believe that their allocation of income for the periods in question was appropriate and that they have paid the proper amount of taxes in each of the jurisdictions… Therefore Sony and SCEI disagree with the position of the Tokyo Regional Taxation Bureau and will promptly lodge an objection."
SPOnG will be keeping its beady eye on this one, so stay tuned for an update in the near future.
(source: DigitalWorldTokyo.com)
It seems that Sony also hates the taxman, as the company is contesting an order from the Tokyo Regional Taxation Bureau to pay a whopping ¥27.9 billion (US$239.9 million) in additional taxes on profits made from sales of products between its Japanese and overseas units.
How this oversight has happened is unclear. Perhaps Sony should get a better accountant?
The supposed unpaid taxes in question relate to sales in two areas of the business. Firstly, between Sony Computer Entertainment Inc. (SCEI) and Sony Computer Entertainment America Inc. (SCEA) between April 1999 and March 2005. Secondly, relating to transactions related to CD and DVD disc manufacturing operations with several overseas subsidiaries from April 2003 to March 2005.
The company, somewhat unsurprisingly, claims otherwise. In an official statement that reads: "Sony and SCEI believe that their allocation of income for the periods in question was appropriate and that they have paid the proper amount of taxes in each of the jurisdictions… Therefore Sony and SCEI disagree with the position of the Tokyo Regional Taxation Bureau and will promptly lodge an objection."
SPOnG will be keeping its beady eye on this one, so stay tuned for an update in the near future.
(source: DigitalWorldTokyo.com)
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Comments
DoctorDee 30 Jun 2006 13:04
1/3
(er, don't forget schools and hospitals – Ed)
Don't be bloody naive. The government doesn't spend tax money on schools and hospitals. Private companies do that, the government then spunks away FAR FAR FAR more tax dollars on corporate profits for the fat (p[rivately educated and medicated) opportunists that run these companies, and on dividends for their opportunist shareholders.
bidule 30 Jun 2006 14:44
2/3
Hum.. when the tax man is behind you, sure something is wrong. Sony save the bucks.. until you can.
Dreadknux 2 Jul 2006 22:13
3/3
Considering all the bad press lately around the company regarding production losses and the like, I'm sure this news is hardly what Sony needs right now.
Think fast Sony boiz.
Think fast Sony boiz.