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NHK hit by $14m penalty fees
NHK hit by $14m penalty fees
Chris Forrester,
Japan’s public broadcaster NHK must pay Yen1.46 bn in penalty taxes that directly relate to unpaid subscription fees over the past few years.
NHK has been somewhat beset by assorted scandals over the past few years, and earlier this week confirmed it had fired three employees guilty of insider stock trading. These scandals have damaged trust in NHK. While not acknowledged by NHK it is widely reported that up to 30% of Japan’s householders are no longer paying NHK’s all-important “receiving fees” (licence fees), and these penalties relate to these fees, and the tax deductions made by NHK to more accurately reflect their overall loss of income.
However, Japan’s National Tax Agency has only approved a small portion of the claimed deductions – and NHK must now cough up the balance. Specifically, NHK had failed to declare Yen1.33bn in consumption tax on Yen28 bn (US$266m) of unpaid licence fees, and this has resulted in back taxes and penalties of Yen1.46 bn.
NHK says it is working hard to rebuild viewer trust, and is even considering encrypting its signals to encourage payment. By 2011 it wants to reduce non-payment to 15% of the population by encouraging direct-debit payments
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30-05-2008, 11:56 PM
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