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Google Japan hit with back taxes after failing to report ad income

Tech giant transferred revenues to Singapore to reduce payments, authorities say

Google headquarters in Silicon Valley (Photo by Takuya Imai)

TOKYO -- Google Japan has failed to declare 3.5 billion yen ($32 million) in income in the year ended December 2015, even as advertising revenues behind the income were generated in Japan, sources told Nikkei on Tuesday.

Google Japan oversees Japanese advertising for the American technology company, but revenues from the operations were recorded at a Google unit in Singapore, where tax rates are lower. The Tokyo Regional Taxation Bureau judged that the arrangement was specifically designed to reduce Google's tax liability.

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