P.M. BRIEFING : Tokyo Firm to Pay Tax Penalty
Yamaichi Securities, one of Japan’s “Big Four” securities houses, said today it has agreed to pay a $21.5-million penalty for what it said are false allegations it compensated clients for stock losses.
The Tokyo Regional Taxation Bureau imposed the penalty after Yamaichi allegedly compensated major clients to the tune of $52.7 million for losses incurred in the October, 1987, stock crash.
The bureau said the compensation should have been reported as entertainment expenses, or donations, subject to tax.
Yamaichi said it would pay the fine but reaffirmed previous statements that it had not intentionally compensated customers for losses.
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