Yamaha hit with tax evasion bill

Kyodo

Tax authorities have ordered Yamaha Motor Co. to pay taxes and penalties on 600 million yen in income that the firm failed to declare in the two years through March 2001, sources said Thursday.

The Nagoya Regional Tax Bureau found that the Shizuoka-based motorcycle maker evaded about 100 million yen in income tax by falsifying reports on the time at which it disposed of unsold motorbike engines, the sources said.

The firm was ordered to pay unpaid taxes and penalties, the sources said. The company said it has already made the payment, estimated at some 200 million yen.

The sources said the company booked a loss of about 100 million yen on some 1,800 unsold engines it claimed it had disposed of by the end of March 2001.

But a probe by the tax authorities found that the disposal had actually taken place in April that year. The company closes its books at the end of March each year.

Yamaha has denied that it deliberately falsified its tax report, saying a document indicating the disposal took place in April had not reached the company accountants by the time it declared its earnings in June 2001.

Of the remainder of the income Yamaha is said to have failed to declare, 200 million yen was for inventory the company had claimed to be smaller than was the case, the sources said. The rest was for declaring the asset value of originally developed production-management software to be less than it really was, they said.

Yamaha Motor was established in 1955 through a separation from Yamaha Corp., the musical instrument manufacturer. Besides motorbikes, it manufactures automobile engines, boats and yachts.