Tokyo prosecutors have arrested real estate tycoon Genshiro Kawamoto on suspicion of dodging more than ¥800 million in corporate taxes.
Kawamoto, 81, was president of Tokyo Shoji, a real estate leasing firm liquidated last April, and is known for owning the Marugen multitenant buildings located in several locations, including Tokyo's posh Ginza district.
Once ranked in the Forbes world billionaires list, Kawamoto has repeatedly said in the past that his actions do not constitute tax evasion but rather tax savings. He is likely to argue the same before prosecutors, investigative sources said.
Kawamoto was arrested Tuesday for hiding about ¥2.9 billion in revenue for three years through December 2011, avoiding around ¥862 million in corporate taxes. His real estate firm, which was established in Ginza in 2009 but liquidated last April after transferring to Kitakyushu, was managing revenue for the lease of about 30 buildings, the sources said.