Tax evasion inquiry widens
29 April 2008
Japan: Japanese prosecutors probing a tax evasion case involving construction company Mizutani Kensetsu Co. have questioned employees of Obayashi Corp. in connection with an airport project it subcontracted to Mizutani, according to reports in the Japan Times.
Mizutani posted revenues of JPY 10 billion (US$ 870 million) from projects related to the construction of the Central Japan International Airport, Nagoya in its 2003 accounts. It is alleged the company's then-chairman, Isao Mizutani, evaded JPY 230 million (US$ 1.9 million) in corporate taxes in accounting for the project.
Mizutani contracts' under scrutiny include land development at the airport.