TOKYO, June 17: The Japanese branch of major US investment bank Goldman Sachs on Monday denied media reports that seven Japan-based affiliates allegedly evaded paying taxes.

We strongly object to the accusation of tax evasion. Taxes are paid in full observation with Japan’s tax code, said Orlando Camargo, a spokesman for Goldman Sachs Japan Ltd.

He was referring to a weekend report by Jiji Press and Kyodo news agencies saying that the seven firms avoided paying taxes by transferring $40m in income to a Dutch company within the Goldman Sachs group.

The affiliates had earned the money by buying and selling bad loans including land and properties as collateral from financial institutions, reports said.—AFP