Apple Japan must pay some $98 million in back taxes after tourists bought iPhones and were incorrectly exempted from paying taxes.
Tourists visiting Japan for less than six months can buy items without paying a 10% tax, but the exemption doesn’t apply to purchases made with the intention of reselling the items.
According to Nikkei, via Reuters, there were a number of bulk purchases at Apple Stores in Japan that should not have been exempt from the tax, since they were obviously for resell. In at least one case, an individual purchased hundreds of phones.
As a result, Apple will have to pay $98 million in back taxes.