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Common Issues in Japanese Tax Audits

Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

 

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

 

 

If you need clarification on Japan’s tax audits, this blog can be helpful.

 

 

Applicable to Both Corporations and Individuals

・Forgetting to affix stamp duty on contracts
・Errors in the division of consumption tax; Expenses for overseas or land rent
・Unrecorded revenues from vending machines, etc.
・Self-consumption (in restaurant businesses); these should be recorded as sales
・ Expenses unrelated to businesses; such as personal travel costs

 

Only for Individuals

・Non-business related expenses such as entertainment expenses
In the case of corporations, entertainment expenses are capped at 8 million yen for tax purposes, so tax officers are not particularly strict. Conversely, for individuals without such a limit, tax officers scrutinize these expenses more rigorously.

 

Also, the following is essential.
What is The Worst-case Scenario in Japan’s Tax Audits?

 

 

Our accounting firm has been actively assisting foreign business owners in Japan with accounting and tax matters. Please feel free to contact us through the inquiry form.

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