Taxation authorities have fined Kubota Corp. for hiding 340 million yen in taxable income over two fiscal years to the end of March 2002, industry sources said Saturday.
The Osaka Regional Taxation Bureau ordered the major machinery manufacturer to pay about 130 million yen in unpaid taxes and a heavy penalty surcharge, the sources said.
A Kubota spokesman said the company has paid up the full amount, although it does not agree with the tax authorities' decision.
According to the sources, the Osaka bureau of the National Tax Agency found that the company hid the income by falsely booking money, which should have been regarded as entertainment expenses, as fees paid to subcontractors.