Nippon Television Network Corp. failed to declare about 250 million yen in taxable income in a three-year period to March 31, 2003, sources familiar with the case said Friday.
The Tokyo Regional Taxation Bureau is thought to have determined that NTV hid some 110 million yen in income. It has reportedly ordered the company to pay about 90 million yen in additional taxes and penalties, the sources said.
The sources said NTV had production companies make TV programs at bloated costs, and had some of the money returned to it.
The returned money was used for purposes such as entertaining people who appeared on the TV shows.
A spokesperson at NTV said, “It is true that we have undergone investigations by the tax authorities, but we cannot comment on the contents.”