AICHI (TR) – The Nagoya Regional Taxation Bureau has filed a criminal complaint on suspicion of tax evasion against the former manager of a chain of so-called “delivery health” sex businesses, reports Jiji Press (Oct. 10).
According to the bureau, Tomoyuki Nagata, 43, is alleged to have not disclosed 190 million yen in sales from parlors in 2017. In not reporting the amount, Nagata evaded 44 million yen in taxes.
Including penalties, Nagata is expected to face a tax bill exceeding 90 million yen. The non-paid taxes were used for entertainment expenses, the bureau said.
The chain has more than 100 parlors in Shizuoka and Kanagawa prefectures and Tokyo.
In April, the Shizuoka District Court found Nagata guilty of violating the Labor Standards Act by forcing at least one woman to work for the chain. That ruling is under appeal.
Regarding the alleged tax evasion, Nagata said, “There was a mistake. I consulted with a tax accountant and I didn’t know that I needed to file a tax return.”