Overview
- Rakuten Card was assessed about ¥42.1 billion for alleged underreported consumption tax covering four fiscal years through December 2023.
- The company said it has paid the full amount while contesting the assessment and has filed for review with the National Tax Tribunal.
- Tokyo Regional Taxation Bureau concluded the receivables-based funding should be treated as a taxable transfer rather than non-taxable borrowing.
- Rakuten Card maintains it treated the transactions as borrowings when using card receivables to raise funds from financial institutions.
- The figure includes additional tax for underreporting, according to reports based on interviews with the company and related sources.