Olympus Corp. is said to have failed to declare its taxable income worth 10.3 billion yen, earned within a period of five years. The particular earnings, which were accumulated until March 2011, came from their offices in Japan and Britain according to tax officials.
The Tokyo Regional Taxation Bureau said that it has already collected 4.9 billion yen worth of back taxes from Olympus, but another 1.47 billion yen needs to be shouldered by Olympus excluding the amount already paid by Britain. These incomes were generated from medical equipment manufactured from the company’s medical subsidiary. The Olympus Medical Systems Corp., which is based in Tokyo, exported medical equipment like endoscopes to KeyMed Ltd. in Britain.
According to tax bureau officials, these items were exported because of price difference. Those sold locally usually cost lower. However, Olympus claims that such allegations are not true. The camera maker also said that it will file an official objection.
This is not the first time Olympus have been involved in financial allegations. In 2011, the company was reported to have made transactions that attempted to cover its losses, the biggest case of corporate fraud in Japanese corporate history. Tsuyoshi Kikukawa, a former chairman of Olympus, received three years jail time suspended for five years for the $1.7B accounting fraud. Three businessmen were even arrested for being suspected of receiving bribes from Olympus. The company is still facing several lawsuits from investors, including State Street Bank and Trust & Co. and Government of Singapore Investment Corporation Pte Ltd.
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