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Apple Inc's Japan division is facing additional taxes of 13 billion yen ($98 million)
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For bulk sales of iPhones and other Apple products to foreign tourists.
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The charges are in addition to the consumption tax that was incorrectly exempted.
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The Nikkei reported Tuesday, citing unidentified sources, that foreign buyers at Apple stores made large-scale purchases of iPhones.
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At least one transaction involved a person buying hundreds of handsets simultaneously.
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Japan permits tourists who stay for less than six months to purchase items without paying the 10% consumption tax.
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However, the exemption does not apply if the item is purchased for resale.
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According to Nikkei, Apple Japan may have filed an amended return tax.
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The company did not respond to a request for comment. However, it stated in an email that tax-exempt purchases are currently unavailable at its stores.