Amusement park operator Toshimaen Co., which is under the scandal-hit Seibu Railway Co. group, failed to declare 200 million yen in taxable income in connection with rent payments for a company house used privately by a female acquaintance of its former president, sources said Tuesday.

Toshimaen has already paid more than 60 million yen in penalties and taxes on the 200 million yen, which the amusement park failed to declare over a seven-year period through December 2003, the sources said.

Toshimaen paid about 10 million yen a year in rent for the company house in Tokyo’s Meguro Ward owned by the amusement park operator’s subsidiary, although the house had been used by a 55-year-old woman who is an acquaintance of Yasuhiro Tsutsumi, 66, who was dismissed as Toshimaen president on March 30.

The company also paid 20 million yen in adviser fees to the woman during the seven-year period, even though she never worked for the company.

Toshimaen spent about 130 million yen in total on the woman, and the Tokyo Regional Taxation Bureau has decided the money should be considered as income Tsutsumi gained from the company.

Tsutsumi is the younger brother of former Kokudo Corp. Chairman Yoshiaki Tsutsumi, 70, who has been charged with playing a leading role in making false reports on Kokudo’s shareholdings in Seibu Railway and of insider trading of shares in the railway.

Toshimaen, which operates a namesake amusement park in Tokyo’s Nerima Ward, did not give full details about Tsutsumi’s dismissal last month, simply saying he is suspected of involvement in fraudulent management activities that might cause damage to the company.

But the sources said he was apparently dismissed because of his involvement in spending money on his female friend.

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