Hitachi, units fail to declare ¥10.1 billion

Kyodo

Hitachi Ltd. and its subsidiaries failed to declare a combined ¥10.1 billion in taxable income in the three years through March 2012, company and other sources said Thursday.

The Tokyo Regional Taxation Bureau did not tell the major electric machinery maker to pay back the taxes as they could be offset by the losses the company incurred, the sources said.

An official in Hitachi’s public relations department said the company will not dispute the findings.

Hitachi erroneously booked about ¥1 billion worth of electric cables and other materials to fix facilities damaged by the 2011 earthquake and tsunami as expenses that could be deducted from taxable income, even though they should have been booked as assets until they were used, according to company officials.

The parent company failed to declare more than ¥6 billion in total, while some of its roughly 140 consolidated subsidiaries also made accounting mistakes, they said.