TOKYO (TR) – The special investigation department of the Tokyo District Public Prosecutor’s Office has arrested the representative director of a cosmetics company based in Minato Ward over alleged tax fraud, reports the Yomiuri Shimbun (Mar. 6).
Between July of 2013 and June of 2016, Tomoko Uehara, the 41-year-old representative director of Builder Japan, allegedly received 261 million in consumption tax refunds for fictitious orders that were said to have been placed with suppliers.
The special investigation department did not revealed whether Uehara, who has been accused of violating the Consumption Tax Act, admits to the allegations.
In the consumption tax refund system, the difference between the amount of tax on purchases and that of sales can be refunded if the former is greater than the latter.
According to the Builder Japan web site, the company exports cosmetics primarily to other parts of Asia.
According to sources with knowledge of the case, the misappropriated funds were used as capital for operations and to cover living expenses, according to Nippon News Network (Mar. 6).