TOKYO, Oct. 4 (UPI) -- About 180 foreign nationals who worked at Japanese branches of foreign financial institutions have been ordered to pay back taxes on unreported income.
The workers, who worked for Credit Suisse First Boston, the former ING Securities and other financial institutions, received part of their income as bonuses after leaving Japan to work for outplacement firms in Hong Kong and other locations, reported the Asahi Shimbun Monday.
They had declared their bonuses as retirement allowances, which are taxed at half or less of the individual income tax rate. The misreported sums per person ranged from tens of millions to one billion yen ($9 million).
The Tokyo Regional Taxation Bureau concluded that these acts constituted cross-border tax evasions, hence the notification to pay back taxes and penalties. Moreover, the tax bureau concluded the companies to which the former employees allegedly moved were also suspect, as they did not appear to be conducting substantial activities, the paper added.
