See More on Facebook


Tax bureau finds Ghosn misappropriated ¥150 mil. over 3 years

Ghosn is currently out of on bail.

Written by

Updated: October 30, 2019

Nissan Motor Co. was found to have underreported about ¥150 million over the three years until the business year ending March 2014, The Yomiuri Shimbun has learned, in the latest revelation over former Chairman Carlos Ghosn’s alleged misappropriation of the automaker’s funds.

The Tokyo Regional Taxation Bureau has determined that a donation made to a university in Lebanon, the home country of Ghosn, 65, and other expenditures made during the three-year period were for Ghosn’s private purposes, and judged that they should not be considered company expenses that can be deducted from corporate income.

According to informed sources, Nissan is believed to have already revised its income tax return and paid the penalty tax, which amounts to tens of millions of yen. Nissan’s in-house investigation found that Ghosn had directed, or intended to direct, a total of about ¥15 billion in improper expenditures, including expenditures for private purposes. The tax investigation has substantiated part of this finding.

A seven-year statute of limitations applies to the right to collect national tax in the case of fraud such as falsification and concealment. For that reason, the tax bureau imposed the penalty tax in advance for the three years until the year ending March 2014. The bureau is continuing to investigate the period from the business year ending March 2015, meaning other misappropriations could be recognized in the future.

The in-house investigation found that Nissan donated over $2 million (about ¥216 million at the current exchange rate) to a university in Lebanon despite having no business-related reason for doing so. It also found that the company paid Ghosn’s older sister more than $750,000 (about ¥81 million at the current exchange rate) for “consultant work” across more than 10 years starting in 2003, despite doing no work for Nissan.

According to informed sources, Nissan recorded these costs as expenses of the secretarial office for three years until the year ending March 2014. They totaled about ¥150 million, of which the tax bureau determined that the several millions of yen paid to Ghosn’s older sister for consultant work during the period constituted hiding of income involving falsification and concealment because the commission fees were fictitious. As a result, Nissan was hit with a hefty additional tax.

Ghosn has been charged with violating the Financial Instruments and Exchange Law for underreporting of remuneration totaling about ¥9.1 billion and aggravated breach of trust for misusing Nissan funds for payments to an acquaintance in Saudi Arabia and a dealership in Oman, among other crimes. Ghosn denies all charges. None of the incidents of misappropriation targeted by the penalty tax are part of the case against Ghosn.

Nissan will refrain from commenting while the tax investigation continues, an official at the company told The Yomiuri Shimbun, adding that it plans to sue for damages and take other necessary steps to clarify that responsibility lies with the former chairman and others. Ghosn’s attorney said his client has nothing to answer for.

Enjoyed this story? Share it.

The Japan News
About the Author: The Japan News is published by The Yomiuri Shimbun, which boasts the largest circulation in the world.

Eastern Briefings

All you need to know about Asia

Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.

By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here


Nepal’s luxury hotels are growing but the rooms are empty

There are 15 five-star hotels in the country, and a dozen more are being planned even as existing hotels continue to report a significant drop in profit. High-end hotels might be proliferating across the country but there aren’t enough guests to fill them up, according to the financial reports of Nepal’s three key five-star institutions. The first quarter financial reports from Taragaon Regency Hotels, Soaltee Hotel and Oriental Hotels, all of which are listed on the Nepal Stock Exchange, showed that profits have taken a nosedive after posting record profits last fiscal year. The first quarter of the fiscal year runs from mid-July to the end of September. The three hotel groups say that unhealthy competition, like price undercutting, a demand-and-supply gap, and a growing number of backpackers are behind the sharp fall in earnings. According to its report, Oriental Hotels, which operates Radi

By The Kathmandu Post
November 21, 2019


Huawei to match Google’s mobile services by Q1 2020

The company to support more Android apps on its phones. Huawei may soon be able to offer Android developers a full range of the essential mobile services required for their apps as the ones provided by Google. This would allow more Android apps to work on new Huawei phones affected by a ban that forbids the use of Google mobile services on these handsets. Mr Zhang Ping’an, president of Huawei Consumer Cloud Service told The Straits Times in an interview at Huawei’s Asia-Pacific Developer Day last Wednesday (Nov 13) that Huawei Mobile Services can “replace 90 per cent of Google Mobile Services by December”. These mobile services from Google and Huawei are used by developers to enable key functions in their mobile apps to, for

By The Straits Times
November 21, 2019


Moon says volunteer military system needs time

The president says South Korea will transition to a volunteer army. South Korea needs to move to a volunteer military system, but the switch from the current conscription system will need time and preparation, President Moon Jae-in said Tuesday. “(A volunteer system) is something our society must move toward. But at present, the conditions are not right to introduce a volunteer system, (the change) needs to be planned in the mid- to long-term,” Moon said, speaking in a live televised question-and-answer session with 300 selected civilians. Moon said that measures such as increasing the number of professional soldiers and improving military har

By The Korea Herald
November 20, 2019


Gota wins Sri Lanka elections, extends olive branch to all

The race was called Sunday with the former defence chief winning. President elect, Gotabaya Rajapaksa, yesterday pledged to fully assist the Election Commission in holding elections. He made this statement at the Elections Secretariat, where the official results of Saturday’s presidential election were declared. Rajapaksa is to be sworn in at Ruwanweliseya, Anuradhapura today. He is to visit the Sri Maha Bodhi as well. Rajapaksa obtained 6,924,255 votes (52.25%) while Sajith Premadasa obtained 5,564,239 (41.99%.) Rajapaksa secured a victory margin of over 1.3 million votes. Jathika Jana Balawegaya candidate, Anura Kumara Dissanayake obtained 418,553 (3.16%) votes, not enough to save his deposit. Gotabaya also emerged victorious in Kalutara, Galle, Matara, Hambantota, Moneragala, Ratnapura, Badulla, Kurunegala, Puttalam, Gampaha, Kandy, Matale, Polonnaruwa Colombo, Kegalle and Anuradhapura distr

By The Island
November 18, 2019


Let Kashmir breathe

It is the 100 day anniversary of India’s moves in Kashmir. IT is a grim milestone. Tuesday marked the 100th day of the siege of India-held Kashmir, after New Delhi clamped down on the region and did away with its special status guaranteed by the Indian constitution. Read: Occupied Kashmir marks 100 days of annexation Since then, life has become a nightmare for the Kashmiris, as they have been living under constant lockdown, their routines disrupted by the heavy hand of the Indian establishment. The matter was raised during a Senate session in Islamabad on Tuesday, with lawmakers questioning the UN’s relative silence where the suffering of Kashmiris is concerned. Former Senate chairman Farooq Naek urged the government to approach the International Court of Justice over the matter, while

By Dawn
November 15, 2019


China, India doing ‘absolutely nothing’ to clean up

Garbage they drop in sea floats into Los Angeles: Donald Trump. US President Donald Trump at the Economic Club of New York on Tuesday, has said countries like China, India and Russia are doing “absolutely nothing” to clean up their smokestacks and industrial plants and the garbage that they drop in sea floats into Los Angeles. Trump also claimed that he considers himself to be, “in many ways, an environmentalist, believe it or not”. US president said that climate change is a “very complex issue.” “So…I’m very much into climate. But I want the cleanest air on the planet and I want to have – I have to have clean air – water,” Mr Trump said in remarks at the Economic Club of New York. Trump while addressing the audience said that the US withdrew from the “one-sided, horrible, horrible, economically unfair, ”close your businesses down within three

By The Statesman
November 14, 2019