Asahi Shimbun fails to report 800 mil. yen taxable income

The Tokyo Regional Taxation Bureau has found The Asahi Shimbun Co. had failed to report about 833 million yen as taxable income over a three-year period up to fiscal 2005, including 4 million yen income concealed, it was learned on May 30, 2007. According to the same day issue of the Asahi Shimbun, payment in back tax was about 356 million yen. Asahi bears the payment of salaries for its employees loaned to other firms in the Asahi group or affiliated firms. These firms pay back to Asahi the money equivalent to the pays to the loaned employees on the basis of their own pay scales. The taxation bureau pointed out that reduced or exempted part of the money paid back, amounting to 260 million, was income receivable. Asahi also failed to declare as taxable income the fees collected on soft drink vending machines installed at some of its local branches. The bureau further noted that the company failed to report as taxable income about 410 million yen related to newspaper distribution. An official responsible for public relations of the company said in a report on the newspaper that there were differences of opinions between the taxation bureau and the company. The company, however, accepted the notification from the bureau earnestly, he said.