Toyota Motor Corp. failed to declare some 5 billion yen in taxable income during the two years through March 2002, sources said Wednesday.
The Nagoya Regional Taxation Bureau has apparently ordered Toyota, based in Aichi Prefecture, to pay some 2 billion yen in back taxes and penalties.
Toyota said Wednesday it has paid some money to the tax authorities, though it refused to comment in detail.
Roughly 1 billion yen of the undeclared amount was in the form of padding of nontaxable costs aimed at supporting its loss-making sales subsidiary in Singapore, Toyota Motor Asia Pacific, according to the sources.
Toyota is also thought to have tried to hide this financial support by falsifying accounting documents, the sources said.