SoftBank Corrects 4 Years of Tax Filings -- WSJ
April 19 2018 - 3:02AM
Dow Jones News
By Mayumi Negishi
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 19, 2018).
TOKYO -- SoftBank Group Corp., the operator of the world's
largest technology fund, said it corrected four years of tax
filings after Japanese authorities uncovered Yen93.9 billion (about
$875 million) worth of unreported earnings at offshore
subsidiaries.
The Tokyo Regional Taxation Bureau said SoftBank failed to
report earnings at three subsidiaries, located in Bermuda and
Singapore, of its U.S. telecom units Sprint Corp. and Brightstar
Corp. for four years through March 2016. Bermuda has no corporate
tax, while Singapore's is 17%. Taken against deferred losses, the
omissions resulted in Yen3.7 billion in additional taxes for
SoftBank, the company said.
The amendments come amid increased scrutiny of the use of tax
havens by technology giants such as Google Inc., Apple Inc. and
Amazon.com Inc. That increases the pressure on SoftBank, which
fields billions of dollars worth of deals through multiple
entities, to keep on top of revised tax codes and their impact on
complex corporate and investment structures that span thousands of
companies and their subsidiaries. Sprint and Brightstar alone have
hundreds of subsidiaries around the world.
The two companies in Bermuda had revenue from insurance fees,
while the one in Singapore had revenue from used handset sales, the
Asahi daily reported earlier.
"We are not fully in agreement with parts of this outcome,"
SoftBank said in a statement. The subsidiaries come under U.S.
jurisdiction, and having their income taxed in Japan constitutes
double taxation, it said.
SoftBank manages the Saudi-backed $92 billion SoftBank Vision
Fund and a $6 billion affiliate fund, a network of investment arms
through which it makes smaller investments, and well over a
thousand companies it has invested in.
Write to Mayumi Negishi at mayumi.negishi@wsj.com
(END) Dow Jones Newswires
April 19, 2018 02:47 ET (06:47 GMT)
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