Prostitutes Working in the Taxation Bureau File Fraudulent Tax Return

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A female employee of the Tokyo Regional Taxation Bureau received a fraudulent tax return of approximately 1.67 million yen after declaring approximately 10 million yen in cosmetic surgery as “medical expenses” and was also fired after being found to have worked as a prostitute at a soapland in Tokyo for about 50 days between March and May this year.

On June 28, the Tokyo Regional Taxation Bureau announced that a female official in her 40’s had been disciplined for breaching the National Public Service Law (for loss of trust).

The female employee applied for expenses for cosmetic surgery and other procedures that are not deductible as medical expenses on her income tax returns from 2019 to 2023. For 2020 and 2021, she filed a tax return for approximately 3.54 million yen, including fictitious medical expenses, in the name of a relative and received a fraudulent refund of 700,000 yen.

Furthermore, in 2019 and 2020, she submitted false documents to the Ministry of Finance Mutual Aid Association in the name of interior construction on her house, and fraudulently borrowed 16.8 million yen.

The National Tax Administration imposed a supplementary tax of 1.83 million yen on her and 880,000 yen on her relatives, including under-reported tax and heavy additional tax. She has already amended her tax return and paid the tax, but hasn’t clearly admitted the borrowing.

The female employee was in charge of tax delinquency in the Tokyo Regional Taxation Bureau’s area of jurisdiction. In January this year, during the course of examining a 2023 income tax refund form submitted by her to the competent tax office, something suspicious was discovered about the contents of the form, and the irregularities were uncovered.

In addition to working at a brothel after work on weekdays and on holidays, she also worked at the shop on the days she took off because of illness. It’s not known how much she earned in those 50 days nor where she spent the money.

In January 2022, a 27-year-old female employee in the Tokyo Regional Taxation Bureau was found to have worked for 150 days at escort agencies and a brothel, earning 1.25 million yen. In December 2022, a 24-year-old female official of the Corporate Taxation Department was found to have worked at eight sex shops, earning approximately 8.26 million yen over 165 days.

Additionally, in December last year, three female employees in their 20’s were punished for engaging in unauthorized dual employment. Two worked in brothels and one did sugar dating. All of them repeatedly engaged in prostitution to raise money for mail hosts.

It was discovered that a total of five female tax officials had been working in brothels over the past three years, but it hasn’t been confirmed whether they know each other or what kind of relationship they had with each other.

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