Tokyo tax authorities are expected to slap about ¥17.8 billion in back taxes on life insurer Alico Japan for failing to declare corporate taxes in valuing foreign currency-denominated assets.
The Tokyo-based insurer affiliated with American International Group Inc. said the company and the Tokyo Regional Taxation Bureau have different views on the application of relevant laws and it will consider countermeasures, including objecting to the additional taxes.
According to Alico Japan, around half of the premiums paid by policyholders were managed in foreign currency-denominated securities and the value of the premiums decreased sharply amid the yen's rapid appreciation after the subprime loan crisis erupted in the United States last summer.