Transportation
Nissan Ineligible for Tax Break After Underpaying Firms: Yomiuri
Nissan’s violation of Japan’s Subcontract Act came to light as Tokyo lobbied companies to increase salaries and help workers cope with rising prices.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Nissan Motor Co. is no longer eligible for a tax break supporting companies that raise wages, after the automaker underpaid its contractors by about ¥3 billion ($20 million), the Yomiuri Shimbun said.
Inability to apply for the tax break may weigh on the carmaker’s earnings this year, the Yomiuri said. Nissan’s name has been removed from a list of around 44,000 companies eligible for the tax incentive on the Economy Ministry’s website. Once removed, companies lose eligibility for one year, the paper said.