Panasonic Fails to Declare 42 B. Yen in Taxable Income

September 12, 2018

Osaka- Japanese tax authorities have concluded that Panasonic Corp. failed to declare some 42.1 billion yen in taxable income over the two years ended in March 2017, the company said Tuesday.

The Japanese electronics maker sold its entire stake in a subsidiary in North America to another subsidiary in the Netherlands for about 737.1 billion yen in March last year.

The Osaka Regional Tax Bureau told Panasonic that the price was below fair value and that 41.2 billion yen out of the sum was donations, the company said.

Panasonic said the price was fair value based on objective assessment and that the payment did not include donations. The company will file an objection, it said. Jiji Press