The JOC (Japan Olympic Committee) announced on the 6th that an investigation by the Tokyo Regional Taxation Bureau pointed out tax errors in the method of recording revenue and expenditure, and that it had received an additional tax of approximately 2 billion yen.
The company stated that it had a "difference of opinion with the Tokyo Regional Taxation Bureau," but explained that it had already filed an amended tax return.
JOC held a press conference in Tokyo on the 6th and stated that an investigation by the Tokyo Regional Taxation Bureau pointed out tax errors regarding the method of recording marketing income and expenditure for the five years up to fiscal year 2022, resulting in a total of approximately 1.8 billion yen in missed declarations. It was announced that, including the additional tax for under-reporting, the company received approximately 2 billion yen in additional tax.
When asked about the fiscal year in which profits should be recorded and the recording of losses, the JOC stated, ``We are aware that there are no tax issues, and there is a difference of opinion with the Tokyo Regional Taxation Bureau.'' , I explained that I had already filed an amended tax return and paid the full amount.
The JOC called the amendments ``regrettable,'' and said, ``We will operate the program in a way that will not affect player training programs for future tournaments, and will strive to properly file and pay taxes.''
JOC Explains the difference of opinion with the Tokyo Regional Taxation Bureau
Regarding the reason why JOC = Japanese Olympic Committee Managing Director Takahiro Kitano claimed that there was a difference of opinion with the Tokyo Regional Taxation Bureau,
▽The fact that the accounts are audited by auditors and independent auditors in each fiscal year,
▽The calculation of corporate taxes, etc. The company outsourced the process to a tax accountant corporation to obtain an appropriate opinion on how to record income and expenditures.
On the other hand, he explained that filing an amended tax return without filing a complaint "cost a lot of effort, money, and time. In the end, I had no choice but to accept it."
He added, ``The JOC does not have an accounting policy that reserves internal reserves, but allocates all profits to strengthening athletes, supporting sports organizations, and promoting the spread of sports.The NTA's findings this time are truly regrettable, but the accounting procedures should be changed. "While we were entrusting the matter to the appropriate experts, a difference of opinion arose. We want to prevent this from happening in the future."
JOC's fiscal year 2020 financial results show that ordinary revenue was approximately 15.35 billion yen, ordinary expenses were approximately 13.46 billion yen, the end of the period balance of net assets was over 10.69 billion yen, and the amount of corporate taxes was 1. It was over 80 million yen.