Sony Corp. said Wednesday it has been notified by the Tokyo Regional Taxation Bureau that it failed to declare 21.4 billion yen worth of taxes for five years to March 2003.
Noting it was told by the bureau that the electronics and entertainment software firm's report on profits from trading with its overseas subsidiaries was 21.4 billion yen short, Sony said the income reassessment could result in a payment of about 4.5 billion yen in back taxes.
Sony said in a statement it views the reassessment of its profits as "regrettable" and will lodge an objection to the bureau.
Sony was told it should have paid more tax in Japan for its CD and DVD disc businesses in the United States and six other countries during the five years, instead of paying tax to the nations where its subsidiaries are based, it said.
The bureau's reassessment will not affect Sony's group earnings, Sony added.