Bunka Gakuen, the Tokyo-based operator of noted fashion school Bunka Fashion College, failed to declare some 250 million yen in income over a five-year period up to March 2000, sources close to tax authorities said Wednesday.
Public corporations such as school corporations are only subject to taxation on their earnings through sales of goods and other activities. Because Bunka Gakuen's sales sections have been operating in the red, no back taxes emerged as a result of the discoveries, according to the sources.
According to the sources, Bunka Gakuen, based in Tokyo's Shibuya Ward, hid roughly 7 million yen in income by falsifying and concealing revenue from advertisements placed in a magazine published by its publication division.