Prosecutors arrested the head of a consultancy Tuesday on suspicion of masterminding an elaborate tax dodge including slush funds funneled by Kajima Corp. over the construction of two plants for Canon Inc., the prosecutors said.

Norihisa Oga, 65, president of Oita-based consultant firm Daiko, was arrested along with six others on suspicion of violating the corporation tax law.

The seven arrests came a day after the prosecutors arrested five other suspects over their involvement in the Daiko-led tax evasion scam.