Tax authorities recently discovered that Suzuki has been concealing roughly ¥300 million in income over a period of two years through March 2015.
According to tax authorities, Suzuki allegedly concealed their income by claiming motorcycle racing parts were utilized as cost instead of inventory. However, Suzuki did not actually use these motorcycle parts, only pretending to use the parts. Under Japanese laws, unused parts should be declared as inventory and cannot be treated as cost, unless the parts are used or disposed of.
In addition to the motorcycle parts, Suzuki was said to have booked a portion of development cost before actual development work was completed, violating the taxation laws.
Suzuki will need to pay back ¥450 million ($4.4 million) in back taxes, which includes a heavy penalty.
Earlier this year, Suzuki was in trouble when the company falsified fuel economy data on several domestic models.
