Muji store parent Ryohin Keikaku has been found to have dodged paying ¥7.5 billion (US$68.3 million) in tax by transferring taxable income to its operations in China, where it runs 256 outlets.
The Japanese retailer has been ordered by the courts to pay the required taxes, which have accrued since 2017, as well as around ¥2.1 billion ($19.1 million) in penalties.
In a statement, the firm said that although it holds a different view on the policy of double taxation, it has decided to pay the tax as assessed by the tax bureau.
Ryohin Keikaku has appealed to the tax authority in Japan to deal with its Chinese counterparts to avoid double taxation in future.