I’m realizing 5 years too late that I’m an idiot. I agreed to buy my preds furniture and car when I took over his apartment (I’m an ALT). He told me to wire the money from my U.S. bank to his U.S. bank and I never thought twice about it. I now came to the realization that I needed to pay consumption tax on those things. In addition, we never signed any formal agreement. He just took me to the place to transfer ownership and that was it.
Is there any way I can back pay a consumption tax for 2019?
What are the tax rates?
I’m expecting to be audited and this transaction is on my bank statement and they will ask about it.
Edit: I’m a non permanent resident who will likely be audited when I file taxes for prior years sales of stock. I never even thought to file until now.
by OvertechB
12 comments
But you got it as a gift, remember? *wink* *wink*
I’d say you are over thinking this.
Are you actually getting audited or is there some reason you think you will? It’s 5 years ago. I don’t know how car ownership transfers work here but furniture is worth like nothing anyway and there is no documentation.Â
Why the concern?
I’ve reported you to the IRS
Lol. Friend… No one cares. You are fine even in audit. You just need a paper trail. So make sure the one create is the Truth….
>I needed to pay consumption tax on those things
Only consumption-tax-collecting businesses pay consumption tax. Unless you’re a consumption-tax-collecting business, you don’t pay consumption tax.
Relax. It’s NTA. Not IRS.
A Taxing Woman is watching your house as we speak….
Assuming value of all the stuff is under 1M JPY, I doubt you have anything to worry about.
1. The chance of an audit is relatively low if you are filing back taxes of your own accord. If the tax office found you hadn’t filed when you should have, and contacted you about it, your chance of an audit is higher.
2. Person to person sales of things like household goods are not subject to consumption tax. Unless you were buying a wildly excessive amount of stuff, you do not need to worry about his. (99.999999% sure you do not have to pay consumption tax on this.)
3. A car purchase in excess of 500,000yen is taxable, and you pay the tax when you transfer the title of the car. As long as you didn’t pay more than 500,000yen for the car, or if you paid more than 500,000yen and properly declared it when the title was transferred, you are fine.
100% too dramatic about it. move on with your life. it was 5 years ago
There’s no way you’ll get audited for that …
On top of all the other wonderful answers, there is a 5 year statute of limitations.