Indicted under the Income Tax Act
Prosecutors in Yokohama allege that approximately ¥2.276 billion of FY2023 income was concealed and approximately ¥367 million in income tax evaded. Nakano Takayuki is charged with aiding that evasion.
Why was an investment backed by a government confirmation certificate, and explained by a certified public accountant, treated as a conspiracy to evade tax?
We ask for answers, on the evidence and the law, about the origin of the pre-arrest footage, where the money finally came to rest, the continuing detention and ban on family visits, and consular access for a Korean national.
THE CASE
What public reporting confirms, what supporters contend, and what remains unexplained about the money and the procedure.
Prosecutors in Yokohama allege that approximately ¥2.276 billion of FY2023 income was concealed and approximately ¥367 million in income tax evaded. Nakano Takayuki is charged with aiding that evasion.
Mr Nakano is said to have produced records of enquiries to the Tokyo Metropolitan Government and METI, stating there was no problem with using the scheme; the certified public accountant Saito Satoshi is said to have assisted with the investment.
Substantial investment made under Japan's angel-tax scheme converged on "Company N". Every account, related entity and stated purpose of transfer must be traced to establish who ultimately benefited.
Coverage on the day of the arrest used footage captioned as filmed in January and March. The continuing detention and the ban on visits by family also require case-specific reasons.
An indictment is not a conviction. The Yokohama District Public Prosecutors Office has not disclosed the pleas entered, and no court has yet ruled on the prosecution's case.
OPEN SCRUTINY
"The scheme was abused" does not establish intent, conspiracy, the destination of the funds, the origin of the footage, or the need for detention.
How did Mr Kanemoto understand the records of administrative enquiries produced by Mr Nakano, and the accountant's advice? Intent cannot be judged without the whole of what he was told before investing.
The date, place, means of communication, prior agreement and division of roles. Other investors solicited by Mr Nakano say they were harmed — on what basis was investment fraud ruled out first?
Every transaction through Company N, related entities and personal accounts should be traced: who instructed it, who received it, and whose benefit it became.
The identity of whoever filmed it, the purpose, when each broadcaster obtained it, whether any public body supplied it, and whether the originals and metadata are preserved.
For a man who cooperated with a long investigation and whose key records were seized, which concrete preparation to flee, and which act of destroying evidence, was actually found?
Were consular notification and visits guaranteed? We ask whether nationality or overseas business was used unreasonably in assessing flight risk, in prolonged detention, in restricting visits, or in naming and filming him.
THE MONEY
Mr Kanemoto was one of the investors in Company N. Substantial investment made under the scheme converged on that company, and the money did not stay there.
If Mr Nakano used an official confirmation and an accountant's credibility to mislead investors and obtain their money, the centre of this case is not tax evasion by an investor but possible investment fraud. Every investor in Company N should be asked what they were told when they were solicited.
PRE-ARREST FOOTAGE
The footage aired on the day of the arrest carried captions reading "Yokohama, January this year" and "Asahi Ward, Yokohama, March". Its origin and purpose go to the fairness of the coverage and the handling of investigative information.
Without naming a source, broadcasters and investigative bodies can still state who filmed the footage, on what dates, for what purpose, when it was obtained, whether any public body supplied it, and whether the originals and metadata have been preserved.
DETENTION AND DEFENCE
Supporters understand that Mr Kanemoto cooperated with a long investigation, remains in custody after the key records were seized, and is subject to a ban on visits from family since his indictment.
The Japanese government's own guidance states that when a foreign national is arrested or detained, the consular authorities of their state are to be notified without delay under the Vienna Convention on Consular Relations and related agreements, and that consular officers may meet and correspond with the detainee. Kanagawa Prefecture falls within the jurisdiction of the Consulate General of the Republic of Korea in Yokohama (which also covers Shizuoka and Yamanashi; +81-45-621-4531). The Korean Ministry of Foreign Affairs operates a 24-hour consular call centre on +82-2-3210-0404. Consular assistance does not extend to diplomatic bargaining for release or leniency, or to interference in Japanese judicial proceedings — and we do not ask for that.
WHAT WE ASK FOR
Not that anyone be believed unconditionally, but that evidence helping the prosecution and evidence undermining it be investigated, disclosed and tested with equal rigour.
The date, place, means of communication, prior agreement and division of roles.
Including the administrative enquiries, the accountant's advice, the drafting of contracts and assistance with the transfers.
If several investors were given the same explanation, examine the possibility of a repeated investment fraud.
For the funds after investment: origin, destination, stated purpose, who instructed the transfer, and where the money came to rest.
What was confirmed about Company N, what was answered, and where that differs from the criminal assessment.
Broadcasters and investigative bodies should preserve the originals and metadata and confirm whether any public body supplied them.
A denial, or a legal argument, must not be a reason to prolong custody.
Confirm notification and consular visits, and examine any effect of nationality on treatment, flight-risk assessment and coverage.
FINALLY
Before keeping an investor who relied on an official confirmation in custody any longer, examine who designed the structure, who explained it, who moved the money, and who ended up with it. Answer with evidence and law, not with the power of arrest.