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Family's tax evasion of forex in Japan
According to the news release, Osaka Regional Taxation Bureau pressed charges of violating the Income Tax Law against a family of three including ex-city employee who hid total amount of 726 million yen incomes from foreign exchange trading and evaded 250 million yen of income tax charge. Each and all admitted to the charges, they revised each income reports and they are forced to pay 330 million yen in back taxes including heavy penalty tax. Osaka Regional Taxation Bureau brought an accusation against forex investors for the first time. According to officials, the accused family have begun foreign exchange trading since 2002. The father(63-years-old) who operated a bottle store(off-license) closed a business since he started foreign exchange trading. Although he earned 57 million yen from forex trading, he only declared income of 0.9 million yen. In 2004, he earned 60 million yen and his daughter(33-years-old, former city employee) earned over 44 million yen though, they didn't declare income from foreign exchange trading. In 2005, he earned over 160 million yen, his wife(63-years-old) earned 224 million yen and his daughter earned 177 million yen. However, each person declared income from 2.8 to 5.6 million yen and evaded each tax. Osaka Regional Taxation Bureau inspected the family in February, they were revealed what they changed tax-dodge money into saving deposit. Therefore, they fully admitted tax evasion. In Japan, high-income earners over 18 million yen are subject to income tax(it's national tax) of 40% and local taxes(a prefectural inhabitants tax and a municipal tax) of 10%. In addition, the consumption tax of 5%, public pension premiums, public health insurance premium and premium for nursing-care..... In 2ch(Japanese largest Internet forum), many forex traders moan about high taxes because forex trading gains are comprised in individual income as other income.