Ex-Head of Japanese Yakiniku Chain Arrested over Tax Evasion

Tokyo, July 23 (Jiji Press)–Japanese public prosecutors on Thursday arrested the former president of a “yakiniku” barbecue restaurant chain on suspicion of evading income tax through the alleged misuse of a tax break designed to promote investments in startups. The 55-year-old former president of New Look Co., who goes by the name Shigenori Kanemoto, is suspected of evading some 367 million yen in income tax by concealing about 2,276 million yen in income in 2023. The suspect sold his stake in New Look to another yakiniku chain, Amiyaki Tei Co., in April 2023. He invested the proceeds in a company managed by an acquaintance, using the so-called angel tax system, which exempts a portion of capital gains from tax if the money is invested in startups, people familiar with the matter said. However, there is no evidence that the investment was used in the company’s operations, and most of the money is believed to have been funneled to another company related to Kanemoto, raising suspicion of tax evasion, the people said. On Thursday, the Yokohama District Public Prosecutors Office and the Tokyo Regional Taxation Bureau jointly searched locations linked to the suspect. The suspect denied the allegation in voluntary questioning prior to the arrest, people familiar with the investigation said. New Look, founded in 1991, operates restaurant chains including Yakiniku Tenryu and Motsushige. It posted sales of 1.61 billion yen in the fiscal year through October 2022. END [Copyright The Jiji Press, Ltd.]