SoftBank failed to declare 37 billion yen in income

Tokyo tax authorities have reportedly said that SoftBank Group failed to declare around 37 billion yen, or about 284 million dollars, in corporate income for the two years through March 2021.

The group says it has filed a revised tax return.

Sources say SoftBank recorded asset assessment expenses and other charges as losses when it acquired stakes in a new corporate entity created through a merger between the US mobile company Sprint and another US mobile carrier, T-Mobile US. Sprint was a subsidiary of SoftBank at the time.

However, the Tokyo Regional Taxation Bureau appears to have judged that the expenses should have been included in the cost of the stock purchase, rather than being posted as losses.

SoftBank revised its tax return based on the tax authorities' notice, but it apparently did not pay any extra taxes as it was in the red for that period.

In a statement posted on its website, SoftBank says the amendment was due to differing views on such issues as the timing of posting expenses. It adds that there were no revisions that would be subject to additional tax penalties, which are imposed in cases that involve disguising or concealment of income.