OSAKA -- Matsushita Electric Works Ltd. failed to declare about 300 million yen in assets, mainly in connection with the development of a computer system, over the two years through the business year that ended in November 2001, company sources said Saturday.
The Osaka Regional Taxation Bureau ordered the major building materials and lighting equipment maker to pay about 100 million yen in back taxes, including penalties, the sources said.
A Matsushita Electric spokesman acknowledged the company has paid the full amount of taxes, in line with the taxation bureau's order.
Matsushita Electric reported computer system development costs as losses in a single accounting year, resulting in reduced taxable income for that year, the sources said.
But the taxation bureau ruled the costs could only be counted as losses if they were reported over multiple years because the new computer system is regarded as deferred assets.
The company also reported the cost of renovating factory facilities as losses for a single year, the sources said. Those transactions should have been counted as depreciable assets, they said.