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Japan pops SoftBank for unreported earnings

Japan pops SoftBank for unreported earnings

TOKYO: SoftBank Group Corp., majority owner of Sprint Corp., failed to report earnings at three of the Japanese conglomerate’s subsidiaries.

SoftBank corrected four years of tax filings related to three subsidiaries of Overland Park-based Sprint (NYSE: S) and Brightstar Corp., reflecting about $875 million in unreported earnings that Japanese authorities discovered.

That resulted in a tax bill of about $35 million for the subsidiaries, based in Bermuda and Singapore. As scrutiny of tax havens by tech giants intensifies, SoftBank will face more pressure to stay apprised of revised tax codes and the changes’ effects on the company’s sprawling, global operations, the report says. Sprint and Brightstar have hundreds of subsidiaries.

In a statement, SoftBank said it is “not fully in agreement with parts of this outcome,” the report says. According to the company, the subsidiaries come under U.S. jurisdiction, and having their income also taxed in Japan results in double taxation.