TOKYO (Reuters) - U.S. investment firm Lone Star <LS.UL> said on Monday it has no unpaid tax liabilities in Japan, denying a claim by the national tax agency that it owes money.
By Alison Tudor
TOKYO (Reuters) - U.S. investment firm Lone Star <LS.UL> said on Monday it has no unpaid tax liabilities in Japan, denying a claim by the national tax agency that it owes money.
Japanese public broadcaster NHK said the Tokyo Regional Taxation Bureau was pursuing the Dallas-based fund for avoiding 14 billion yen ($140 million) in taxes on profits made collecting on non-performing loans at regional lender Tokyo Star <8384.T>.
"We believe strongly, on the advice of our expert tax advisers, that the reporting of all of Lone Star Funds' investments in Japan is in full compliance with Japanese tax law," said Lone Star fund in a statement.
!ADVERTISEMENT!Lone Star has since sold Tokyo Star to Advantage Partners, Japan's biggest private equity firm, for 248 billion yen ($2.48 billion).
NHK said the tax bureau believes the profits were transferred by Lone Star through a unit in Ireland to a Bermuda-based fund.
The Tokyo Regional Taxation bureau declined to comment.
Lone Star said the fund believed it did not owe the taxes as the company subject to the tax investigation was not active in Japan.
"We understand that the company that the NTA (national tax agency) claims has a Japanese tax liability in fact has no connection whatsoever with Japan; it has never made any investments or otherwise conducted business in Japan," said Lone Star.
"Thus we believe the NTA's position is incorrect," the fund said.
(Reporting by Alison Tudor)
