A Japanese distributor “Banana Corp” imported Ecuadorian bananas from a group company for wholesale in Japan.
The Japanese tax administration ruled that the amount of consideration paid by Japanese distributor had exceeded the arm’s length price and issued an assessment of additional tax and penalties for FY 1999 – 2004.
At first Banana Corp brought the case before the regional court who decision in favour of the tax administration.
Banana Corp appealed this decision to Tokyo High Court.
Tokyo High Court dismissed the appeal and upheld the decision of the regional court.Ban-Co-2013-084405_hanrei