Police and tax authorities on Tuesday started searching an oil manufacturer in Honjyo, Saitama Prefecture, on suspicion of evading 254 million yen in taxes.
Saitama Prefectural Police are searching Sakai Nenryo Hambai and its sales company in Kodama to obtain evidence that the firm evaded taxes on selling gas oil after illegally manufacturing the fuel.
A total of 66 locations -- such as factories and buyers in Tokyo, Saitama, Ibaraki, Tochigi, Gunma, Kanagawa, Niigata, and Yamanashi prefectures -- are being targeted in the search. Police are also investigating Keiichi Sakai, the president of the company, and others on suspicion of selling 2 billion yen worth of gas oil from 1999 to 2001.
According to police investigations, the company illegally manufactured the fuel by adding kerosene and sulfuric acid to fuel oil at a factory in Kodama, which the company began renting in 1999.
Police said they suspect the company dodged the taxes between April and July 2001 by selling about 7.9 million liters of oil 30 yen to 40 yen per liter cheaper than usual.
In March, police charged Sakai and two others with illegally dumping waste materials made in producing the gas oil.