Overview of the Arrest
On May 14, 2025, the Investigation Department of the Tokyo Regional Taxation Bureau and the Metropolitan Police Department arrested Takuya Ishii (55), the representative director of an adult-entertainment group operating five outlets in Tokyo, on suspicion of violating the Corporation Tax Act (tax evasion).
Over the five-year period from fiscal 2019 to 2023, he is alleged to have concealed roughly 320 million yen in income by dispersing part of the revenue under the names of affiliated companies. The amount evaded, combining corporate tax and consumption tax, is said to total about 90 million yen.
The Sophistication of the Scheme
Ishii is alleged to have established multiple corporations and used a "spin-off scheme" in which the revenue of each outlet was dispersed among the various corporations to compress the taxable base on the returns. He is also alleged to have recorded part of the employees' compensation as "outsourcing fees" paid to other companies, inflating expenses through transactions that had no substance.
Tax Problems in the Industry
In an adult-entertainment industry centered on cash income, where bookkeeping tends to be opaque, observers have long noted that tax evasion is rampant. In recent years, the National Tax Agency has stepped up tax audits of the industry, aided by the spread of digital payments, which has made it easier to grasp revenue from electronic records.
This article is compiled from publicly available information.