TOKYO (TR) – Prosecutors have arrested the former head of a Yokohama City restaurant management company on suspicion of evading approximately 367 million yen in income taxes through a fraudulent startup investment scheme, reports NHK (July 23).
Shigenori Kanemoto, 55, who also goes by the name Shigetoku Kin, is accused of violating the Income Tax Act, according to the Special Criminal Department of the Yokohama District Public Prosecutors Office.
Kanemoto is the former president of New Look Co., which operates a chain of yakiniku restaurants. He is suspected of evading some 367 million yen in income tax by concealing about 2.28 billion yen in income acquired from the sale of company shares.
The income came from the suspect’s sale of his stake in New Look to another yakiniku chain, Amiyaki Tei Co., in April 2023.
Authorities did not reveal if the suspect admits to the allegations.
“Angel Tax” system
To pull off the scheme, Kanemoto reportedly exploited the government’s “Angel Tax” system, an initiative that offers tax incentives to individuals who invest in startup enterprises.
Sources state he funneled money into a company run by an acquaintance to artificially lower his taxable income. However, investigators believe the transactions were a sham, with almost the entirety of the invested money secretly kicked back to the suspect.
On the afternoon of July 23, prosecutors raided Kanemoto’s residence to seize evidence.
Authorities have not disclosed whether the suspect has admitted to the allegations. Prosecutors are now conducting a thorough investigation to uncover exactly how the illicitly retained funds were spent.
