TOKYO, Dec 1 — Some of Japan’s richest people failed to declare a total of ¥65.5 billion (about RM1.9 billion) in taxable income during the year through June 2024, Japan Times reported today.
This figure represents a 33.2 per cent decline from the previous year, the Japanese daily reported, citing information from the National Tax Agency.
The agency conducted 2,407 investigations into the wealthy, including individuals with substantial holdings in securities and real estate, marking an 18.2 per cent decrease in the number of probes.
As a result of these investigations, the National Tax Agency recovered ¥17 billion in back taxes, although this was 7.1 per cent lower than the previous year.
Meanwhile, undeclared income among all individuals under investigation surged by 10.2 per cent, reaching a record high of ¥996.4 billion.
Total back taxes for all investigations also rose by 2.2 per cent, hitting a record ¥139.8 billion.
The agency attributed the rise in undeclared income to the increased use of artificial intelligence (AI) to streamline investigations.
Business management consultants led the list of professions concealing the most taxable income, with an average of ¥38.71 million per case, similar to last year.
They were followed by nightclub hosts and hostesses, who hid an average of ¥36.54 million in income.
Rounding out the top three were online content streamers, who failed to report an average of ¥23.81 million in income.
These trends highlight the ongoing issue of tax evasion among Japan’s wealthy, despite the government’s efforts to combat underreporting using advanced technology.
