Goldman Sachs Japan affiliates allegedly evaded taxes

Seven Japanese affiliates of Goldman Sachs have allegedly evaded taxes by transferring 5b yen (€42m) in income to a Dutch company within the group, reports said.

The affiliates had earned the income by buying and selling bad loans that include land and properties as collateral from Japanese financial institutions, Jiji Press and Kyodo news agencies said.

They then transferred the income to a Dutch company within the Goldman Sachs group and made a dummy company in the tax haven British Cayman Islands an owner of their purchased properties, the reports said.

Neither Jiji nor Kyodo said when the alleged tax evasion occurred.

The Tokyo Regional Taxation Bureau ordered the seven Goldman affiliates to pay some 1.5bn yen (€12.7m) in unpaid taxes and penalties, and the companies complied, the reports said.