Aug 30 (NHK) - Executives at Facebook have run afoul of authorities for failing to report about 4.7 million dollars in income at the firm's Japanese arm.
Sources say Facebook Japan instructed clients who bought advertising to pay a group company in Ireland. The corporate tax rate there is 12.5 percent. In Japan, it's closer to 30 percent.
Tax officials say the remuneration paid by the Irish arm back to the Japan unit in 2016 and 2017 was less than it should have been. They're expected to order Facebook Japan to pay more than 1 million dollars in back taxes.
Facebook and other global tech giants are facing heavy criticism for exploiting legal loopholes to minimize their tax obligations.
In January, authorities found Google's Japan unit failed to declare 32 million dollars in income by transferring revenue to Singapore.
