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Tokyo Tax Bureau Hits Mixi Subsidiary With ¥200 Million Bill Over Hidden Income

Auditors said payments routed to former executives were company earnings disguised as rebates.

Overview

  • An audit of Chari Loto found about ¥800 million in concealed income over roughly six years through the fiscal year ending March 2024.
  • Tokyo Regional Taxation Bureau assessed additional corporate taxes and heavy penalties totaling around ¥200 million, which the company has already paid after filing amended returns.
  • About ¥1 billion that business partners paid was redirected as rebates to the former president and a former sales chief through multiple entities, including a firm run by the former president’s wife.
  • The tax authority deemed the redirected funds to be Chari Loto’s business revenue rather than personal income of the executives.
  • Mixi said it takes the matter seriously, apologized, and pledged stronger group governance; Chari Loto sells keirin and auto race betting tickets online.