HYOGO (TR) – An anonymous benefactor has thrown a massive financial lifeline to struggling Hyogo Prefecture, handing over 35 kilograms of gold bars worth over 830 million yen, reports Mainichi Broadcasting System (Sep. 17).
The glittering donation, received on September 8, carries a market value of 833.74 million yen, marking the highest single contribution to the prefecture in recent memory.
The massive windfall comes at a critical time for the local government. In August, Hyogo’s worsening financial crisis saw its debt-servicing ratio exceed 18 percent.
Severe financial situation
As a result, the prefecture was downgraded to a restrictive status requiring permission from the national government just to issue new bonds. To combat the crisis, officials were already preparing a painful 20-billion-yen slash to public investments.
“Amid our extremely severe financial situation, we have received this gesture for the development and advancement of Hyogo,” Governor Motohiko Saito said, expressing his profound gratitude on behalf of the residents.
Saito confirmed that, in accordance with the donor’s wishes, the prefecture plans to liquidate the bullion and utilize the funds for regional development.
Taxes
But why donate heavy gold bars instead of a simple bank transfer?
According to tax accountant Hiroaki Tabuchi, donating physical gold allows the benefactor to bypass a massive tax bite. If the donor had liquidated the gold themselves, they would have been hammered by exchange fees and exorbitant taxes on the profits — including income tax up to 45 percent and a 10 percent resident tax.
Tabuchi explained that an 830-million-yen gold stash would have dwindled to roughly 600 million yen in cash after taxes. By donating the physical bullion directly to a local government, the municipality can liquidate it completely tax-free, receiving the total market value of the gold.
Not the first time
The sheer scale of the anonymous gift is staggering for the prefecture. In a typical recent year, Hyogo received a total of 1.82 billion yen in donations from all corporate and individual sources combined, meaning this single donor contributed nearly half a year’s worth of typical funding in one swoop.
While rare, it is not the first time a Japanese municipality has received a golden windfall. In May 2023, 87-year-old Natsuo Nakajima donated approximately 280 million yen in gold bars to Minoh City in neighboring Osaka Prefecture.
When asked if he had any regrets, Nakajima simply stated he wanted to give back to the city where he made his living. “I was able to make a profit thanks to the citizens,” he said at the time. “In the end, I wanted to return it to Minoh City.”
