Regarding the issue surrounding the political funding party of a faction of the Liberal Democratic Party, a citizen's group claimed on the 1st that the funds kicked back from Abe's faction to the member's affiliated member are suspected of income tax evasion as the funds are the individual income of the member who is subject to taxation. He then submitted a complaint against 10 people, including Abe faction executives and affiliated members, to the Tokyo District Public Prosecutors Office.
In response to a series of problems, the Abe faction's Seiwa Policy Research Group announced on January 31st that it had spent a total of 676.54 million yen in political funds from party income to 95 political groups on the side of parliamentarians over the five years up to the year before 2019. It was announced that it was not recorded in the income and expenditure report.
Regarding this issue, a group of citizens and lawyers argued on the 1st that the party income kicked back from Abe's supporters to members of the Diet is not tax-exempt political funds but the members' personal income, and is suspected of evading income tax. We have submitted a complaint to the Tokyo District Public Prosecutors Office against 10 people, including seven executives and Yoshitaka Ikeda (57), a member of the House of Representatives who is charged with violating the Political Funds Control Act.
In principle, political funds such as donations to political organizations and party income are exempt from taxation, but a lawyer representing the whistleblower said at a press conference, ``In this case, the kickbacked funds will not be included in the political funds balance report.'' "There is no explanation as to how it will be used. There is a possibility that it is personal income rather than political funds, and should be subject to tax."