An Apple iTunes unit in Japan agreed to pay 12 billion yen ($118 million) in tax after local authorities determined it had underreported income, according to local media.
The Tokyo Regional Taxation Bureau levied the fee after concluding the unit had not been paying a withholding tax on Japanese earnings, Reuters reported late Thursday, citing a report by broadcaster NHK. The report said the unit was sending part of the profits it earned from fees paid by subscribers in Japan to another Apple unit in Ireland to pay for software licensing.
Apple is one of many US technology companies that have benefited from stashing cash overseas. That maneuver lets the companies avoid paying hefty taxes they could face by bringing the cash back to the US.
The report comes a little more than two weeks after the European Union hit Apple with a $14.5 billion tax penalty, ruling its deal with Ireland was illegal.
It wasn't immediately clear when the bureau issued the penalty or when Apple agreed to pay it.
Apple did not immediately respond to a request for comment.