AKB48's management company has revised its tax statement after an audit by tax authorities found discrepancies in rent payments for group members and other errors in the three years through November 2014, according to sources.
The Tokyo Regional Taxation Bureau concluded that more than ¥400 million in rents for members of the all-girl pop group was not deductible expenses and instead was taxable "donations," the sources said Monday.
The AKS company said, "We had differences in views, but we have (now) appropriately declared taxes by taking into account the authorities' suggestion."
AKS said it has paid a little more than ¥100 million in penalties and taxes for the undeclared expenses.
The company manages AKB48 and sister groups such as SKE48. Each member signs a contract to work as an individual business entrepreneur who receives compensation from AKS, according to an industry source.