Sony ordered to pay extra $243M in taxes

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What is it about Sony and Taxes!!!


http://news.yahoo.com/s/ap/20060630/ap_on_bi_ge/japan_sony_taxes_5


Fri Jun 30, 4:42 AM ET

TOKYO - Sony Corp (NYSE:SNE - news). said Friday that Japanese tax authorities have ordered it to pay an estimated 27.9 billion yen ($243 million) in additional taxes.


The Tokyo Regional Taxation Bureau ordered the company to pay the additional taxes related to its game console and other operations in the U.S. after finding fault with previous tax filings, Sony said in a statement.

Sony planned to file a protest with the tax authorities promptly, arguing that the additional taxes would constitute double taxation under the terms of U.S.-Japan bilateral tax treaties, the statement said.

The company also plans to request bilateral consultations on the matter.

The tax authorities notified Sony and Sony Computer Entertainment Inc. that it had found fault with tax payments related to profits from the game console operations of SCEI's U.S. subsidiary from 1999 to 2004, the statement said.

The authorities also said Sony should pay additional tax reported profits from transactions relating to CD and DVD disk business operations between Sony and a number of overseas subsidiaries in 2003 to 2004 , the statement said.

Based on the taxation bureau's calculations, the two companies had Japanese income of 74.4 billion yen ($647 million) more than the amount they reported, which would incur extra taxes of around 27.9 billion yen, it said.

The notification comes a day after electronics maker Sharp Corp. said it will pay 300 million yen ($2.61 million) in back taxes after Japanese tax authorities accused it of hiding income over three years. Sharp denied intentionally hiding income and said it would comply with the order to pay the back taxes.




The EU just recently won a case against Sony, stating that the Playstation was not a computer too.

Did Sony kill your dog or something?

Did Sony kill your dog or something?


Yup, his dog choked on his psp.

Lol, actually I haven't liked Sony since I developed a game on the PS2 and had first hand experience of their crappy SDK and cheaply fabricated hardware. Put me off of their consoles for life after that experience.

what game was it ?

Watch them spend more millions trying to justify that they dont need to pay those taxes, just to lose yet again and end up paying more then if they were to just give them the damned $243 million to begin with.

stating that the Playstation was not a computer too.

I'm goin to love see'ing them try that again with the PS3, I have yet to hear them associate the word "gaming" with regards to the PS3 in a long while.

Japan isn't America. It's funny to see them try their tactics there.

Well, Sony needs to choke a little. I suspect the god complex to be gone in another 5 years.

Just glad I chose the X360, and futurely the Wii (currently the "Purple Lunch Box" of a GameCube) on top of anything from Sony at this point. At least Microsoft can afford those taxes (with Bill Gates' deep pockets, why not?)... Well, seems like Sony's gonna lose this next-gen war, I have a hunch. Time to fork that 1st place title to MS, pay up, $ony!

I agree with Jeremy. They need a kick in the ass to get them selling quality products at competitive prices. Rather than over priced junk that looks nice. It's not just their consoles, but most of their consumer electronics.

Add the hype they like to sell, and at the end of the day you have the electronics equivalent of Aurora. Only on a far grander scale of course.

Japan isn't America. It's funny to see them try their tactics there.


Ummm... Sony is JAPANESE!!! It is safe to assume that Sony is pretty damn knowledgable about the tax and legal enviornment in Japan.

From the article, it sounds like it is not so much Sony, as the Japanese government has suddenly decided to crack down on taxes.