Tokyo's regional tax bureau has ordered Sony and Sony Computer Entertainment to hand over 191 million Euro in additional taxes, accusing the companies of under-reporting games business income.
According to Japanese news site IT Media, the bureau has served Sony with a notice for 74.4 million Yen (508 million Euro) in unreported income. The company has been ordered to pay additional taxes of 27.9 billion Yen (191 million Euro) as a result.
Sony allegedly failed to report revenues earned from deals between SCE and its US arm between 1999-2004, and CD and DVD disc transactions with overseas subsidiaries during 2003-2004.
The tax bureau claims that under Japan's "transfer tax price system", which is in place to stop firms from carrying out lower cost deals with partners overseas, Sony should have declared these transactions.
Both Sony and SCE dispute the claims; in a statement, the companies said: "We have always made appropriate tax payments in compliance with the tax codes of countries; this notice is unsatisfactory."
The statement went on to add that Sony was "confident [of avoiding] this double taxation" thanks to international tax agreements.