Technology giant Apple has been hit with a $118m fine in Japan for under-reporting income from the Japanese arm of its iTunes unit.
The ruling comes just weeks after the European Union hit the company with a massive $11bn tax penalty after ruling that Apple’s sweetheart deal with the Republic of Ireland was illegal.
Reports say that Apple paid the amount that was requested by the Tokyo Regional Taxation Bureau, who alleged that the iTunes unit, which sends parts of its profits earned from fees paid by Japanese subscribers to another Apple unit based in Ireland, failed to pay tax on those profits in Japan.
Obviously for a company of Apple’s size a fine of this magnitude amounts to little more than pocket change. Given that this seems to be the start of a trend cracking down against multinational corporations jumping through tax loopholes, other big companies (Google, Amazon, Starbucks et al.) would be wise to start worrying now!