Sanrio Fined 1.3 Billion Yen for Utilizing Tax Havens in Taiwan and Hong Kong

On August 2, 2022, the Japanese company Sanrio (三丽鸥) released a statement regarding the "Notice of Correction Received Based on the Anti-Tax Haven Tax System and Our Response." The statement disclosed that on July 29, 2022, Sanrio received a "Notice of Correction" from the Tokyo Regional Taxation Bureau covering the 5 fiscal years from the fiscal year ended March 2017 to the fiscal year ended March 2021. The corrected taxable income amount is approximately 4.2 billion yen (about 200 million RMB), and the additional tax including local taxes is approximately 1.3 billion yen (about 63 million RMB). The main reason Sanrio was fined was that it was suspected of utilizing its subsidiaries in Taiwan and Hong Kong to avoid taxes, violating Japan's "Anti-Tax Haven Tax System.