According to sources, Johnny & Associates and two related companies were ordered to pay about ¥40 million in back taxes concerning cash gifts given to their talents.
At the beginning of every year, Julie Fujishima, the company’s president, handed “otoshidama” (New Year’s gift money) to the talents. Her company manages about 100 of them.
The cash was placed in envelopes featuring the names of Fujishima or senior company staff members.
From 2018 to 2022, about ¥90 million in such gift money was provided, the sources said.
Johnny & Associates and the two other companies, a publisher and a musical rights manager, have reported these gifts as tax-exempt “entertainment and social expenses.” Such expenses are used to host and entertain outside people, such as clients and suppliers.
The Tokyo Regional Taxation Bureau conducted an inspection starting in October 2021 and concluded that the gift money should have been listed as the “personal expenses of Fujishima herself,” the sources said. They said cash given to the company’s own talents should not be counted as entertainment and social expenses.
All three companies are located in Tokyo’s Minato Ward and are headed by Fujishima.
The amount of back taxes in and penalties is about ¥40 million.
Johnny & Associates and two related companies have accepted the order and have already amended their tax statements, the sources said.
The talents who received the money do not have to pay gift taxes because the amount provided to each of them was only several hundred thousand yen at most, the sources said.
