The Tokyo Regional Taxation Bureau told Amazon.com Inc.'s (AMZN) affiliated company Amazon.com International Sales to pay back taxes of $119 million, the Asahi Shimbun reported in its Sunday morning edition.

Amazon's Japanese affiliates, called Amazon Japan and Amazon Japan Logistics, are responsible for sales and logistics operations in Japan while Japanese customers make contracts of purchasing products with Amazon's affiliates in the U.S. Therefore those U.S. companies booked sales in the U.S. from their business in Japan.

But it seems that the tax bureau judged that an income report of several tens of billion yen should have been submitted in Japan because part of the company's headquarters operations functioned in Japan for their business in the country, the newspaper reported.

Amazon Japan said that the taxation is inappropriate and the company is in talks with the authorities, the newspaper reported.

-By Yoshio Takahashi, Dow Jones Newswires; 81-3-5255-2932; Yoshio.Takahashi@dowjones.com