by Senior Staff Writer – Tyler Knott Gregson

It’s only Monday morning and we already have something we can officially file in the ‘oops’ category for the biggest online retailer in the world, Amazon.com. According to recent reports, they are in a bit of trouble in Japan when it comes to some unpaid back taxes and the Tokyo Regional Taxation Bureau is aiming to do something about it…to the tune of $119 Million dollars. Yikes.

Apparently this huge tax fine was levied against Amazon’s “affiliated unit” called Amazon.com International Sales, and the taxes they are claiming to be owed go all the way back to times between 2003 and 2005. Apparently these allegations were first filed back in 2007, but they are really getting serious now, and according to TechCrunch, here’s the beef:

“The way Amazon operated so far is that every time Japanese customers buy something from Amazon’s Japanese website, they legally make contracts of purchase with Amazon offices in the US. The problem for the Japanese taxation bureau: These sales were booked and taxed in the US, even though Amazon operates two companies in Japan, Amazon Japan and Amazon Japan Logistics.”

The bad thing is, this isn’t the first time Amazon has been in trouble for tax issues. This was also uncovered:

“We are under examination, or may be subject to examination, in the following major jurisdictions for the years specified: Kentucky for 2004 through 2008, France for 2005 through 2008, Germany for 2003 through 2008, Luxembourg for 2003 through 2008, and the United Kingdom for 2003 through 2008…In addition, in 2007, Japanese tax authorities assessed income tax, including penalties and interest, of approximately $119 million against one of our U.S. subsidiaries for the years 2003 through 2005. We believe that these claims are without merit and are disputing the assessment. Further proceedings on the assessment will be stayed during negotiations between U.S. and Japanese authorities over the double taxation issues the assessment raises, and we have provided bank guarantees to suspend enforcement of the assessment. We also may be subject to income tax examination by Japanese tax authorities for 2006 through 2008.”

Stay tuned to this one, it could get messy.