That meant they could cut their taxable income by about 2 billion yen. This money was apparently used to help finance sales promotions at the subsidiaries and to further help improve their financial results. The tax authority determined that these discounted exports were basically just subsidiary subsidies (try saying that tens times fast). They found that Toyota also padded expenditures by half a billion yen on advertising and had improperly accounted for a certain amount of tax-deductible costs. It's a pretty complex web of accounting gymnastics beyond that, but rest assured, the tax authority will figure it out. We're guessing this won't be the last we'll hear of this issue.
[Source: Asahi Shimbun]