TOKYO, March 6 (Xinhua) -- The Japanese Olympic Committee (JOC) has been ordered to pay approximately 2 billion yen (about 13 million U.S. dollars) in additional taxes after tax authorities uncovered improper accounting between fiscal 2018 and 2022, local media reported on Wednesday.
Following a comprehensive audit by the Tokyo Regional Taxation Bureau, there was a difference of opinion regarding the JOC's expense reporting and revenue recognition timing, Kyodo News reported, citing a source close to the matter.
During the investigation, the JOC argued its tax accounting was appropriate, noting it had outsourced its corporate tax calculation to a tax accountancy and been audited by both its own auditor and an outside entity, the report said.
But the JOC decided to pay the additional taxes considering the low likelihood that its appeal against the levy would be accepted, it added.
An additional penalty tax has not been imposed, as the bureau apparently judged the JOC did not intentionally hide income or manipulate its accounts, the report said.
The JOC is a public interest corporation and some of its businesses are exempt from taxation. ■