Tokyo tax bureau files complaint against rebar firm over ¥78 million alleged tax evasion
In short
The Tokyo Regional Taxation Bureau has filed a criminal complaint against Tokyo rebar pressure-welding company W.E.L.T and its representative, Kagura Murakami, 53, over about 78 million yen in alleged corporate and consumption tax evasion. They are suspected of booking fictitious material costs using false invoices. Murakami said the amended returns have been filed and the tax paid.
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The Tokyo Regional Taxation Bureau has filed a criminal complaint against a rebar pressure-welding company, W.E.L.T, based in Edogawa Ward, Tokyo, and its representative, Kagura Murakami (村上神羅), 53. The company is accused of evading about 78 million yen in corporate and consumption tax, according to Sankei Shimbun, TBS NEWS DIG and NHK. Sankei said the complaint was filed with the Tokyo District Public Prosecutors Office and that it learned of it on the 22nd from people involved. [ 1 , 2 , 3 ]
According to people involved cited by Sankei, the company earned profits from rebar pressure-welding work and others, and asked a client company to create false invoices so that it could book fictitious material costs. TBS said the company worked on new condominium construction in the Tokyo metropolitan area and that Murakami had asked a business partner to produce invoices with inflated amounts. [ 1 , 2 ]
Sankei reported that about 203 million yen in income was hidden over the three years through December 2024, with about 57 million yen in corporate and other tax evaded. It added that about 21 million yen in consumption and other tax was suspected to have been evaded between Reiwa 4 (2022) and December Reiwa 6 (2024). TBS gave the same hidden-income figure and a combined tax figure of about 78 million yen. [ 1 , 2 ]
Sankei reported that Murakami used the money for horse-race betting tickets and living expenses. TBS said the money was believed to have been used for those purposes. [ 1 , 2 ]
Murakami told Sankei that the company had already filed amended returns and paid the tax, and apologised for the trouble caused. He told JNN, the TBS network, that he acknowledged receiving the complaint and that the company had amended its returns in line with the points raised and completed payment. [ 1 , 2 ]
Why it matters
The case shows the tax bureau pursuing a criminal complaint over alleged false invoicing by a construction-related firm. The documents give no information on whether prosecutors have started proceedings.
Key facts
- The Tokyo Regional Taxation Bureau filed a criminal complaint against W.E.L.T, a rebar pressure-welding company in Edogawa Ward, Tokyo, and its representative Kagura Murakami (村上神羅), 53. [ 1 , 2 , 3 ]
- The alleged evasion totals about 78 million yen in corporate and consumption tax. [ 1 , 2 , 3 ]
- The company is suspected of booking fictitious material costs by having a business partner create false or inflated invoices. [ 1 , 2 , 3 ]
- About 203 million yen of income was allegedly hidden over three years through December 2024, with about 57 million yen in corporate and other tax evaded. [ 1 , 2 ]
- About 21 million yen in consumption and other tax was allegedly evaded from Reiwa 4 (2022) to December Reiwa 6 (2024). [ 1 ]
- Sankei reported the complaint was filed with the Tokyo District Public Prosecutors Office, citing people involved. [ 1 ]
- The money was reportedly spent on horse-race betting tickets and living expenses. [ 1 , 2 ]
Confirmed by several sources
- The Tokyo Regional Taxation Bureau filed a criminal complaint against a rebar pressure-welding company in Edogawa Ward, Tokyo, over about 78 million yen in corporate and consumption tax allegedly evaded through fictitious material costs and false invoices. [ 1 , 2 , 3 ]
- Murakami said that amended returns have been filed and the tax paid. [ 1 , 2 ]
Still unclear
- Whether prosecutors will bring charges. The documents report only the complaint filed by the taxation bureau and say nothing on prosecutors' decisions.
- Where the money went. Sankei said the funds were used for horse-race betting and living expenses, citing people involved; TBS said they were believed to have been used that way.
- Details of the alleged scheme, including the tax breakdown and the Tokyo District Public Prosecutors Office as recipient. The breakdown and the recipient are given only in the Sankei report, based on people involved.