See More on Facebook

Business

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

Business

Indonesia slams Singapore for withholding information on nationals treated for COVID-19

Indonesia complains on Singapore insisting to withhold personal information of its citizens showing COVID-19 symptoms in Jakarta. The Indonesian government has complained that Singapore insists on withholding the personal information of several Indonesian citizens believed to have shown COVID-19 symptoms in Jakarta and tested positive for the lethal virus in the city-state. Jakarta said it was facing difficulties in tracing and isolating those who might have had contact with the patients, now being treated at Singaporean hospitals. “We have asked for the identities of the Indonesian nationals from Singapore. They did not give us the names. How are we going to conduct the tracing in Indonesia? Singapore is adamant on not disclosing their identities,”


By The Jakarta Post
March 13, 2020

Business

Seoul stocks sink, trigger first circuit breaker for 5 min in 8 years 

The Kospi plummeted more than 5 per cent during Thursday trading, which triggered the stock exchange to temporarily halt trading on Korea’s main bourse, as investor sentiments weighed on the coronavirus pandemic. The Korea Exchange activated a “sidecar,” meaning it temporarily halted the trading of shares, for five minutes around 1:04 p.m. after Kospi 200 index futures slipped over 5 percent. It was the first time the sidecar had been activated for the Kospi since Oct. 4, 2011, when Greece defaulted on its debts. “The temporarily halt trading was due to the plunging of the Kospi 200 index futures. They plummeted from 256.90 points to 243.90 points — down 13 points, or 5.06 percent at that time for over a minute,” a KRX official said. The s


By Asia News Network
March 12, 2020

Business

Final temporary hospital in Wuhan closes its doors

A total of 15 such hospitals, converted from exhibition halls, sports stadiums and warehouses, received more than 12,000 patients. All the 15 temporary hospitals built to exclusively receive novel coronavirus patients in Wuhan, Hubei province, have been closed, with the daily number of reported new cases hitting a record low. Wuchang Temporary Hospital, which was converted from a sports stadium, closed on Tuesday afternoon after its final 49 patients were discharged, making it the last of the temporary hospitals in Wuhan, the centre of the epidemic in China, to close its doors. The hospital, which was converted within two days, received a total of 1,124 patients with mild symptoms of COVID-19 in the 35 days of its operation. No patients died in the hosp


By China Daily
March 11, 2020

Business

Social media curbs removed in Jammu and Kashmir after seven months

 Jammu and Kashmir administration removes restrictions on social media use across Union Territory almost seven months after a communication clampdown since the Centre’s announcement to scrap the special status of the erstwhile state under Article 370 and its bifurcation into two Union Territories of J&K and Ladakh. The Jammu and Kashmir (J&K) administration on Wednesday removed restrictions from social media usage across the Union Territory almost seven months after a communication clampdown on the eve of the Centre’s August 5 announcement to scrap the special status of the erstwhile state under Article 370 and its bifurcation. The directions came after a review of the situation by the J&K Home department. The order, issued without the


By The Island
March 10, 2020

Business

15 Korean pharmas, 4 state institutes research coronavirus

South Korea’s state-run research institutes and pharmaceutical firms are working hard to find a cure for the new coronavirus. South Korea’s state-run research institutes and pharmaceutical firms are working hard to find a cure for the new coronavirus, according to news reports Monday. Around 15 firms and four institutes here are burning the midnight oil to get an effective cure, according to Korea Pharmaceutical and Bio-Pharma Manufacturers Association. KPBMA Chairman Won Hee-mok emphasized the synergies between private and public research bodies in yielding a faster outcome. The association identified Korean companies working on vaccines — including SK Bioscience, GC Pharma, Boryung Biopharma, Sumagen and G+FLAS Life Sciences. T


By Asia News Network
March 9, 2020

Business

‘Incredible India’ now being viewed as intolerant India, says FM Qureshi

 “Modi’s policies are taking a bloody and dangerous turn,” says the foreign minister. Foreign Minister Shah Mehmood Qureshi on Thursday stated that ‘Incredible India’ is now being viewed as “intolerant India”, and ‘Shining India’ as “burning India”, adding that the country is now facing international scrutiny like never before. The foreign minister expressed these views while speaking at a seminar, organised by the Centre for Aerospace and Security Studies, in Islamabad. During his address, Qureshi stated: “Indian Prime Minister Narendra Modi’s policies are taking a bloody and dangerous turn, as predicted by Prime Minister Imran Khan.” Referring to the country


By Asia News Network
March 6, 2020