Photo: Suzuki
Suzuki Motor Corporation has been verified through a tax probe, and it appears that the automaker had concealed some of its income over a period of two years.
While the sums mentioned in the situation had not been confirmed through official channels, a source close to the matter revealed the suspected tax evasion to those at Japan Times. Apparently, Suzuki failed to declare approximately 1.2 billion Yen ($11.6 million) due to accounting errors.
Because of this mistake, the company has been taxed about 450 million Yen ($4.35 million) in charges, including a penalty for its mistake. The difference was discovered by the Nagoya Regional Taxation Bureau, which investigated the corporation. Apparently, the difference came from the racing division of Suzuki’s motorcycle branch.
According to the source, the difference in taxation came from treating old parts for motorcycles used in racing as costs, instead of inventory. The automaker reportedly pretended to have used the parts.
This disruption violated national tax rules in Japan, where parts that have not been used must be regarded as inventory, while those that have been employed can be interpreted as costs.
Another portion of the sum concealed by Suzuki consisted of development costs, which were booked before their projects were completed, and this is another violation of taxation rules in Japan.
When contacted by Japan Times, a Suzuki Motor Corporation official had confirmed that the company had “communication errors,” as well as insufficient knowledge of tax affairs.
In spite of the "difference of opinion with tax authorities," Suzuki has filed the corrected tax reports and had paid all of the money it owed the state.
Suzuki is not the only Japanese automaker that is in trouble these days, as their nationals at Mitsubishi have admitted to a cheating scandal.
The carmaker has also misrepresented fuel economy figures for a while, and now both companies are in trouble for different reasons, but with a few common points - like falsely declaring fuel economy results.
Because of this mistake, the company has been taxed about 450 million Yen ($4.35 million) in charges, including a penalty for its mistake. The difference was discovered by the Nagoya Regional Taxation Bureau, which investigated the corporation. Apparently, the difference came from the racing division of Suzuki’s motorcycle branch.
According to the source, the difference in taxation came from treating old parts for motorcycles used in racing as costs, instead of inventory. The automaker reportedly pretended to have used the parts.
This disruption violated national tax rules in Japan, where parts that have not been used must be regarded as inventory, while those that have been employed can be interpreted as costs.
Another portion of the sum concealed by Suzuki consisted of development costs, which were booked before their projects were completed, and this is another violation of taxation rules in Japan.
When contacted by Japan Times, a Suzuki Motor Corporation official had confirmed that the company had “communication errors,” as well as insufficient knowledge of tax affairs.
In spite of the "difference of opinion with tax authorities," Suzuki has filed the corrected tax reports and had paid all of the money it owed the state.
Suzuki is not the only Japanese automaker that is in trouble these days, as their nationals at Mitsubishi have admitted to a cheating scandal.
The carmaker has also misrepresented fuel economy figures for a while, and now both companies are in trouble for different reasons, but with a few common points - like falsely declaring fuel economy results.
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