Japan and Switzerland have determined that Yuko Matsuoka, the Japanese translator of the global best-selling Harry Potter series, effectively resided in Japan through 2005, upholding claims by tax authorities she failed to declare taxable income in the three years to 2004, sources said.
Matsuoka, 63, had asked for consultations between the Japanese and Swiss authorities over her residency after insisting she did not declare her income in Japan because she lived in Switzerland. She made the request to avoid having to pay taxes in both countries, as she had already declared taxable income in Switzerland.
Japanese tax authorities have ordered her to pay more than 700 million yen in back taxes for 3.5 billion yen in undeclared income in the three-year period because she was then involved in a publication business in Japan and frequently returned home.