Tokyo Regional Taxation Bureau rejects Ajinomoto’s booking of extraordinary losses at a Nigerian subsidiary; ordered to pay penalty taxes for underreported overseas trades

Major Japanese food maker Ajinomoto says it has been ordered to pay penalty taxes for some of its overseas businesses. The company says it has filed an objection with the National Tax Tribunal.

Sources say the company was told by the Tokyo Regional Taxation Bureau that it underreported about 15 billion yen, or about 96.2 million dollars, over the three years through March 2024.

The company confirms it has been ordered to pay about 15.4 million dollars in additional taxes.

Japanese tax authorities have also rejected Ajinomoto’s booking of extraordinary losses at a Nigerian subsidiary.

The company according to sources was told it had failed to report income related to an affiliate in Thailand, which Ajinomoto claims it has no control over.

But tax authorities reportedly said the firm was under the control of an Ajinomoto subsidiary and judged that Japan’s anti-tax haven rules should be applied.

Ajinomoto told a national media that it believes it processed taxes appropriately in accordance with the law after consulting with external experts. The company says it is not fully satisfied with the decision.