Tokyo prosecutors have arrested the head of a trading firm based in Dubai and two other individuals on suspicion of violating Japan’s corporate tax law.
Prosecutors say 71-year-old Tawada Shinichi, head of KPT General Trading, and two others instructed a temporary staffing company in Tokyo and a solar power generation-related company in Kagoshima Prefecture to hide income by recording fake fees.
The three suspects are alleged to have been involved in tax evasion of about 490,000 dollars.
Sources say Tawada and his associates made the two companies transfer money to KPT disguised as consulting fees. They allegedly returned much of the money to the two companies.
Tokyo prosecutors and officials from the Tokyo Regional Taxation Bureau raided the three individuals’ homes and offices on Wednesday.
Tawada had reportedly denied involvement in tax evasion prior to his arrest.
KPT General Trading has its headquarters in Dubai. Its website says the majority of its shares are owned by members of an Arab royal family.