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Tax authority penalizes Nissan over Ghosn expenses

Christian Fernsby ▼ | August 21, 2020
The Tokyo Regional Taxation Bureau is imposing about 250 million yen ($2.e million) in back taxes and penalties on Nissan Motor Co., for some 1 billion yen linked to misspending by former chairman Carlos Ghosn.
Carlos Ghosn
Nissan   Carlos Ghosn
The taxation bureau determined that Nissan had failed to properly declare about 1 billion yen in income over a five year period through March 2019.

Topics: Nissan Ghosn

Nissan had declared the money under corporate expenses, but tax officials later discovered Ghosn had used the funds for personal expenses.

The taxation bureau identified more than 200 million yen used for repeatedly traveling abroad in corporate jets. It also discovered about 100 million yen in rental fees for condominiums in Tokyo, Paris and Amsterdam, along with other items from Ghosn’s personal expenses.

His elder sister had received consultation fees, apparently declared under the guise of a fictitious business deal, which is believed to be the reason the tax bureau imposed the tax penalty on Nissan for that portion of outlays. Nissan paid the corporate tax after it deducted those expenses from taxable income, but the tax bureau refused to accept those as expenses.