Tax authorities ordered a Seattle-based affiliate of online retailer Amazon.com Inc. to pay ¥14 billion in back taxes for unreported income earned in Japan during the three years through December 2005, sources said Sunday.
Dissatisfied with the order, Amazon.com has requested that tax authorities in Japan and the United States discuss the matter in light of a bilateral tax treaty, the sources said.
The pact frees U.S. companies that engage in business in Japan without "permanent establishment" such as branch offices from having to file a tax return or pay taxes here.