TOKYO (TR) – A special investigative unit of the Tokyo District Public Prosecutor’s Office on Wednesday arrested the former president of a real estate firm in Minato Ward over tax evasion, reports NHK (Oct. 23).
Over a three-year period ending in 2017, Kazuhiko Kanai, the president of Wahiko, allegedly used fake expenses to conceal 400 million yen in income.
In not reporting the amount, Kanai evaded about 120 million yen in corporate taxes, the unit said.
“The transactions were correct,” Kanai was quoted in denying the allegations.
Kanai founded Wahiko in 2011. In addition to buying and selling real estate, the company had been expanding its business to include providing investment seminars and consulting for individuals seeking to invest in apartments.
However, the company’s business performance began to deteriorate due to problems connected to unlawful loans for real estate extended by Suruga Bank. Its real estate-related operations are currently suspended.
On Wednesday, prosecutors and representatives from the Tokyo Regional Taxation Bureau raided locations connected to Wahiko in search of evidence in the case.