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JA Kyoto Chief Files Tax Appeal, Denies Receiving ¥300 Million Cited in Audit

The tax tribunal will review roughly ¥500 million in additional assessments tied to alleged sham subcontracting at seven family companies.

Overview

  • Yasuhiro Nakagawa said at a Sept. 28 news conference in Kameoka that he never took profits from family firms, called the tax authority’s reasoning wrong, and indicated he is prepared to sue.
  • The Osaka Regional Taxation Bureau’s audit concluded about ¥800 million in income went undeclared over roughly seven years through 2024, with about ¥300 million attributed to Nakagawa and about ¥500 million to related companies, leading to heavy surcharges.
  • Investigators alleged the firms used falsified receipts and inflated external contractor payments on JA-related work, including the 2018 demolition of the Kyoto JA building; the companies have also petitioned for cancellation of the assessments.
  • Nakagawa confirmed he has not paid the assessed taxes and said he has declared all income, disputing the audit’s methods and conclusions.
  • He remains chairman of JA Group Kyoto and holds other senior JA posts, and petitions challenging the assessments were filed on Sept. 25 with the National Tax Tribunal.