NAGOYA – Electrical engineering contractor Toenec Corp. failed to declare some 700 million yen in taxable income over the five business years to March 31, 2005, taxation sources said Sunday.
The Nagoya Regional Taxation Bureau has collected back taxes of 260 million yen, including penalties, from the Nagoya-based company, which was found to have deliberately concealed some 290 million yen in income, the sources said.
The company reportedly fabricated subcontracts by pretending to have ordered its subcontractors to carry out some of its electric installation work for 110 million yen during fiscal 2002 to 2004.
In addition, Toenec did not declare 180 million yen in revenue and failed to record some 400 million yen in corporate pensions, they said.
A Toenec official said the company has corrected its tax declarations in line with suggestions from the tax authorities, although it differs with them on the issue.
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