Tokyo Disney Resort Demolition Subcontractor Accused of $1.1 Million Tax Fraud

A company which took on construction projects at Tokyo Disney Resort between 2018 and 2020 has been indicted by the Tokyo Regional Tax Bureau on the grounds of hiding income on projects worked on at the Tokyo Disney Resort, as well as dodging over $1 million in taxes.

The Tokyo Regional Taxation Bureau’s Inspection Division has filed a complaint with the Chiba District Public Prosecutors Office, claiming that K.G., a demolition company based in Chiba City near Tokyo Disney Resort, and its President Hitoshi Kasada, hid approximately ¥378 million ($3.27 million) in income over a two-year period ending in July 2020, and evaded a total of ¥128 million ($1.1 million) in corporate tax and consumption tax. K.G. performed jobs at Tokyo Disney Resort between July 2018 and July 2020, most notably the four month-long refurbishment of Splash Mountain from May to September 2019, according to the Asahi Shimbun.

The company’s annual income jumped from ¥100 million ($865,345) to ¥600 million ($5.2 million) per year due to these lucrative deals with The Oriental Land Company. The funds obtained from the tax evasion were kept in cash in a safe deposit box at a bank, and were used to fund the operation of the company as well as to purchase a condo.

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