THE WHAT? Japan’s tax authority has ordered Hankyu Hanshin Department Stores to pay ¥200 million in sales taxes. The decision follows an investigation by the Osaka Regional Taxation Bureau, which revealed that several transactions were incorrectly rung through as duty-free purchases.
THE DETAILS The operator of the department stores in question has amended its tax return accordingly and paid the sum owed. The additional payment includes a penalty for the error.
THE WHY? The sales in question fell foul of Japan’s qualifying criteria for duty-free shopping; foreigners must have been in the country for less than six months. The stores involved had not checked customers’ passports to determine whether they were eligible for the discount. The company has vowed to ensure that the mistake does not reoccur.