Japanese Adjustments Steadily Trend Upward

~1-minute read. This article is part of our CrossBorder Audit Alert series.

Audit Visits Turn into Major Profit for Japanese Tax Authorities

Japanese audits have shifted from large enterprises to medium and small size companies. The number of transfer pricing assessment cases in 2015 was 3,340 which was a 70% increase from the previous year.

In 2015, the total transfer pricing assessment imposed was JPY 220.6 Billion. The average TP assessment was less than JPY 100M, which was a substantial decrease from previous years, indicating that smaller companies were targeted.