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Operator of Shinjuku gay bars paid back taxes

TOKYO (TR) – Tax officials have filed a criminal complaint against the operator of several gay bars in Shinjuku for allegedly concealing more than 200 million yen in income over a three-year period, sources familiar with the matter said, reports Jiji Press (Jan. 28).

On Thursday, the Tokyo Taxation Bureau referred Yukihiro Ikeda, 38, to prosecutors on suspicion of violating the Corporate Tax Act.

Three bars in the 2-chome area that are managed by two of Ikeda’s companies are suspected of concealing 268 million yen in income over the three-year period ending in 2019 in evading 64 million yen in taxes.

Ikeda instructed management of the bars to falsify bills paid in cash. For amounts of 30,000 yen or more, the totals were changed to several thousand yen in order to reduce reported sales, the sources said.

Three bars in the 2-chome area, including Great, are suspected of concealing income to avoid paying taxes (Twitter)

Top establishments in 2-chome

The three bars, including Great and Happiness, are considered some of the top establishments in 2-chome. Many of their customers are tourists.

Ikeda used the concealed income to invest in the stock market, establish an investment trust and purchase an apartment.

Ikeda has filed a revised tax return and paid the owed amounts. “Because the future of the bar business is uncertain, I wanted to lock in a profit,” Ikeda said through a lawyer. “In the future, I will file [tax returns] and pay taxes appropriately.”