The businesses, located in the Kanazuen red-light district, are accused of concealing a total of 1.5 billion yen in income by presenting false revenue statements.
Kanazuen is one of Japan’s foremost pleasure quarters, containing 60 soapland bathhouses and other adult-entertainment establishments.
According to the tax agency, the establishments hid their earnings by through a number of methods, including reporting reduced service fees collected by the female masseuses and omitting fines levied upon employees for being late.
It is expected that the agency will administer large tax penalties upon the establishments.
