NAGOYA – The Nagoya Regional Taxation Bureau has found that Suzuki Motor Corp. failed to declare ¥1.22 billion in taxable income in the two years to March 2011, sources at the bureau said Friday.
The tax authority categorized ¥380 million of the total as concealed income, according to the sources.
The bureau levied ¥200 million in back taxes, prompting Suzuki to revise its tax return, the sources said.
Suzuki included in its earnings report for the fiscal year to March 2011 such items as advertising outlays paid to its subsidiary in Thailand to spur motorcycle sales. However, the bureau is believed to have determined that Suzuki booked the expenses early to make its taxable income appear smaller, they said.
The bureau also detected accounting mistakes over software-related assets in addition to the income concealment, the sources said.
A Suzuki spokesman said the company has already paid the back taxes even though “our views were different from those of the taxation bureau.”
Suzuki, listed on the Tokyo Stock Exchange’s first section, booked group sales of ¥2.5 trillion in the year to last March.
Earlier this month, Suzuki said it will terminate car sales in the United States, withdrawing from the unprofitable business to concentrate resources on other products, including motorcycles.
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