Prime Minister Yukio Hatoyama has decided to amend his tax returns by the end of the year and pay around ¥500 million in gift tax on money he received from his mother, sources said Friday.

Hatoyama's 87-year-old mother allegedly provided him with more than ¥1 billion over six years up to 2008, some of which is thought to have been recorded as political donations from fictitious donors in his political funds reports.

His younger brother, Kunio, a former internal affairs and communications minister, also received political funds from their mother and has expressed his intention to pay gift tax.

Regarding the alleged falsification of the prime minister's political funds reports, Tokyo prosecutors are aiming to file an indictment against his 59-year-old former secretary without arresting him, according to informed sources.