Tokyo authorities are charging Apple Japan $98 million in additional taxes for incorrectly exempting tourists and resellers from a consumption tax.

Authorities had discovered bulk purchases of iPhone and other devices and certain Apple stores in the country, Nikkei reports. At least one transaction involved an individual buying hundreds of iPhones at once, strongly suggesting that Apple didn’t tax a possible reseller.

Japan offers tax-free shopping for visitors staying less than six months to buy certain goods without paying the country’s 10% consumption tax. However, the exemption doesn’t apply to purchases for resell purposes.

Read more at AppleInsider.com

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