GE unit in Japan targeted in tax investigation

[tsuki]

The Asahi Shimbun

800 million yen in back taxes, fines is sought.

The Japanese arm of a subsidiary of U.S. financial services giant GE Capital Corp. (GEC) failed to report about 3.7 billion yen in income in the two years up to December 2003, sources close to the tax investigation said.

The Japanese branch gained huge profits by setting high interest rates for loans extended to a consumer finance arm under GEC and transferred part of the proceeds to GEC in the name of loan guarantee fees to evade taxation in Japan, the sources said.

The Tokyo Regional Taxation Bureau has apparently levied about 800 million yen in back taxes and penalties on the Japanese branch of the subsidiary, called GE Capital International Funding, the sources said.

GEC is part of the General Electric group.

http://www.asahi.com/english/nation/TKY200501040117.html

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Doesn't make you wonder what GE is doing here? Give 'em another tax break!