Tokyo, Oct 08: Top Japanese automaker Toyota Motor Corp. had failed to declare about five billion yen (45 million dollars) in taxable income in two years to March 2002, a news report said today. Of that amount, one billion yen was used to support a troubled subsidiary in Singapore, the Asahi Shimbun newspaper said, citing sources including a Toyota official.

Tax officials believe the automaker attempted to reduce its taxable income by padding the support cost for the subsidiary, the newspaper said. Toyota has apparently paid two billion yen in tax and penalties, the Asahi said.

"Some differences of opinions were pointed out. But we decided to pay because there was no point of fighting over it in court," a Toyota official was quoted by the newspaper as saying. Toyota has been the top declared income earner among major Japanese firms for the past four years, the national tax agency said yesterday.

Toyota declared 988.7 billion yen in taxable income for the year to March, the agency said.

Bureau Report