Trend Micro Accused of Underreporting Over 9.6 Billion Yen in Incomeby Tokyo Tax Bureau
Tokyo, Japan – Trend Micro, aleading global cybersecurity company headquartered in Tokyo, has been accused by the Tokyo Tax Bureau of underreporting over 9.6 billion yen (approximately $70 millionUSD) in income. The accusation stems from the company’s operations in the Netherlands, where it established a subsidiary primarily engaged in bond trading.
According tosources close to NHK, the Tokyo Tax Bureau believes that the Dutch subsidiary was a shell company, operating without genuine business activities. As a result, the bureau contends that the subsidiary’s income should have been included in Trend Micro’s Japanesetax filings.
The Tokyo Tax Bureau alleges that Trend Micro failed to report over 9.6 billion yen in income over a three-year period ending in December 2022. Consequently, the bureau has demanded approximately2.4 billion yen (approximately $17 million USD) in back taxes from the company.
In response to the allegations, Trend Micro has confirmed that it has already paid the back taxes. However, the company maintains that it cannot fully accept the Tokyo Tax Bureau’s decision and plans to continue exploring its options.
This development comes at a time when tax authorities around the world are increasingly scrutinizing multinational corporations’ tax practices, particularly those involving offshore subsidiaries. The Tokyo Tax Bureau’s investigation into Trend Micro’s Dutch subsidiary highlights the growing trend of tax authorities targeting companies that may be using complex structures to minimize their tax liabilities.
Trend Micro’s Response
In a statement released to the press, Trend Micro acknowledged the Tokyo Tax Bureau’s findings and confirmed that it had paid the back taxes. The company stated that it is currently reviewing the details of the case and will continue to cooperate with the authorities.
Trend Microis committed to complying with all applicable tax laws and regulations, the statement read. We are currently reviewing the Tokyo Tax Bureau’s findings and will continue to cooperate fully with the authorities. We are confident that we have acted in good faith and will continue to work diligently to ensure that our tax obligations are met.
Impact on Trend Micro
The allegations against Trend Micro could have a significant impact on the company’s reputation and financial performance. While the company has already paid the back taxes, the ongoing investigation and potential legal challenges could result in further financial penalties and reputational damage.
Furthermore, the Tokyo Tax Bureau’saccusations could trigger similar investigations by tax authorities in other countries where Trend Micro operates. This could lead to increased scrutiny of the company’s global tax practices and potentially result in further tax liabilities.
Expert Commentary
Tax experts have expressed concern over the allegations against Trend Micro, highlighting the potential for similar cases involving othermultinational corporations.
This case is a reminder that tax authorities are increasingly vigilant in their efforts to crack down on tax avoidance, said [Name of Tax Expert], a tax law professor at [University Name]. Companies need to be prepared to demonstrate the legitimacy of their offshore operations and ensure that they are complying withall applicable tax laws.
Conclusion
The Tokyo Tax Bureau’s investigation into Trend Micro’s Dutch subsidiary highlights the growing scrutiny of multinational corporations’ tax practices. The allegations against Trend Micro could have significant financial and reputational implications for the company. As the investigation unfolds, it will be crucial to monitor thecompany’s response and the potential impact on its global operations.
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