Kondo Says Tax Evasion Was Necessary To Keep Ufotable Studio Afloat

ufotable founder Hikaru Kondo stated throughout his public trial on Dec 10, 2021, that tax evasion was essential as a result of it was onerous to cowl the animation prices of the studio from what the purchasers paid for producing an anime.

In line with Kondo, he needed to transfer cash from the net retailer and cafes to his dwelling to not solely forestall part-time employees from seeing the money move however to assist prop up ufotable, which was making a loss on each piece of labor they have been making.

Kondo stated, “The standard demanded of anime retains growing … however as a result of the manufacturing prices provided by the purchasers are comparatively low, each time we produce a piece, we at all times find yourself within the purple.”

He defined to the decide that even when the bottom manufacturing prices are progressively growing the cash coming from the client-side has not modified a bit. This made the state of affairs tough for Kondo to make freelancers full-time staff in change for adequate work.

The previous president continued, saying “[ufotable]s revenue comes from the cafe enterprise and the sale of products. We’ve been capable of proceed our animation manufacturing due to these two areas. If our works don’t change into a success … we won’t be able to pay our employees salaries or recoup the manufacturing prices. I needed to order a enough amount of money in order that I wouldn’t have to fret about working capital in case one thing occurred.”

Every day Shincho, a Japanese web site discovered that Kondo had not solely moved cash away from different areas of the enterprise with out correct course of but in addition moved earnings from God Eater into the subsequent fiscal 12 months to cut back earnings on tax statements.

Moreover, the cash Kondo hid was scattered in his residence in Tokyo reasonably than locked in a secure. In March 2021, an investigator discovered 60 million yen (round US$530,000) in 1000-yen payments laying on the ground of a youngsters’s room.

Kondo had used that money to construct up ufotable Tokushima – a regional anime studio that opened in 2009 to practice employees previous to the interval of which Kondo was charged for – buying land, as properly salaries for Kondo and his spouse.

When the prosecution questioned Kondo on the way forward for ufotable’s enterprise, Kondo reportedly calmly replied that ufotable has not taken on any new animation contracts since 2020. They’re solely persevering with to work on contracts already signed.

The Tokyo District Court docket discovered studio ufotable founder and former president Hikaru Kondo and the anime studio for violating the Company Tax Act, and the Consumption Tax Act and handed down the ultimate verdict on Dec 10, 2021.

Kondo has been sentenced to 1 12 months and eight months in jail with a suspended sentence of three years and the studio is fined 30 million yen; ufotable confirmed the information on their web site.

Kondo admitted to the fees laid out of violating the Company Tax Act and Consumption Tax Act by failing to pay 138 million yen (about US$1.25 million) in taxes at a preliminary listening to by the Tokyo District Court docket on September 17.

Supply: Every day Shincho through Crunchyroll