TOKYO (Reuters) - Japan's tax bureau has accused Honda Motor Co Ltd of failing to report a total of about 140 billion yen ($1.3 billion) in domestic income over two years to March 2006, the Nikkei business daily said on Friday, quoting sources familiar with the matter.

The Tokyo Regional Taxation Bureau believes the automaker reduced its Japanese income by shifting part of it to Chinese joint ventures such as Guangzhou Honda Automobile Co and Dongfeng Honda Automobile Co, the paper said.

($1=104.27 Yen)

(Reporting by Aiko Hayashi)