AKB48’s Management Company Pays Nearly $1 Million in Taxes and Fines After Audit by Tax Officials

The management company of AKB48 revised its tax statement about rent payments for group members and entry errors in the 3 years through November 2014, after an audit by the tax authorities, sources said Monday.

The Tokyo Regional Taxation Bureau appears to have concluded that the amount, totaling just over ¥400 million ($3.3 million), was not deductible expenses but rather taxable “donations,” according to the sources.

The company AKS said, “We had differences in views but we have appropriately declared taxes by taking into account the authorities’ suggestion.” AKS says it has paid a little more than ¥100 million ($828,480) in penalties and taxes for the undeclared expenses.

AKS manages AKB48 and its sister groups, with each member of these groups signing a contract to work as an individual business entrepreneur who receives compensation from AKS, according to an industry source.