Apple’s iTunes unit in Japan pays about $118 million tax on un-reported income

Apple’s iTunes unit in Japan was ordered to pay some 12 billion yen (about $118 million) in tax by local authorities after underreporting income, reports Reuters. It’s been paid.

The Tokyo Regional Taxation Bureau determined that the unit, which sends part of its profits earned from fees paid by Japan subscribers to another Apple unit in Ireland to pay for software licensing, had not been paying a withholding tax on those earnings in Japan, according to broadcaster NHK.

This is the second time in recent days Apple has been dinged in Japan. A report by the Ministry of Economy, Trade and Industry (METI) — as noted by Nikkei — says Apple and Google engage in practices that undermine competition in the smartphone app market by making the most of their control over distribution channels.