Takeda Hit With Back Taxes on 2.2 Billion Yen in Undeclared Income

By Kyodo News International, Tokyo

Dec. 9–OSAKA — Tax authorities have ordered Takeda Pharmaceutical Co. to pay 800 million yen in back taxes in connection with undeclared income of 2.2 billion yen in the three years through March 31, 2003, sources familiar with the matter said Friday.

Takeda, Japan’s biggest drug maker, said it has made the payment in full although its understanding of the income concerned is different from that of the authorities.

According to the sources, the Osaka Regional Taxation Bureau concluded that 99 million yen of the undeclared income was deliberately concealed because the sum was booked as an expense for the disposal of defective products in fiscal 2002, although they had yet to be discarded.

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