FUJI BANK ACCUSED OF MISUSE OF TAX FREE RESERVES
The Tokyo Regional Taxation Bureau has
imposed a penalty tax on <Fuji Bank Ltd> for alleged improper
use of tax-free reserves, a bank spokeswoman told Reuters.
    She declined to reveal the bank's planned response but
another bank official said it has not paid the penalty.
    The bank said in a brief statement it believes that its use
of the tax-free reserves is legal.
    Financial institutions can set aside 0.003 pct of their
risky loans as tax-free reserves. Fuji said a difference of
understanding exists between the bank and the tax bureau
regarding the use of tax-free reserves. It did not elaborate.
    Fuji Bank reported a 72.1 billion yen net profit in the
1985/86 year. Lending totaled 16,120 billion yen.
 REUTER
