OSAKA (Kyodo) Major steel trading house JFE Shoji Trade Corp. failed to declare about ¥570 million in taxable income over several years through March 2009, and has been ordered by tax authorities to pay around ¥200 million in back taxes, sources said Tuesday.
Of the ¥570 million, around ¥100 million was considered by the authorities as having been skimmed, the sources said. An official of the Osaka-based firm said it has paid the entire amount sought by the tax officials.
According to company officials, the firm raised steel stock prices in accordance with price hikes of raw materials, but it compiled part of its sales report based on previous prices.
"We consider it merely as delayed paperwork, but we have obeyed the judgments of the Osaka Regional Taxation Bureau," the firm said in a statement.
JFE Shoji Trade, capitalized at ¥14.5 billion, is a wholly owned subsidiary of JFE Shoji Holdings Inc., listed on the first section of the Tokyo Stock Exchange as well as on the Osaka Securities Exchange.