Tax authorities have filed a criminal complaint against Tokyo-based apparel maker/wholesaler Cocue Co. on suspicion of hiding about 280 million yen in taxable income and evading some 90 million yen in corporate taxes.
Industry sources said the the Tokyo Regional Taxation Bureau filed the complaint with public prosecutors against the company and its president, Masayoshi Kosugi, 42. The firm and Kosugi reportedly tried to minimize the firm's taxable income by reporting to authorities illegally padded costs and failing to declare some sales in the three years through September 1999, the sources said.
Cocue, established in 1988 with capital of 10 million yen, currently has nearly 20 outlets throughout Japan. Its products, particularly Vietnamese-style suits and sandals, are popular among young Japanese women.
The company produces some 60 percent of its products in Vietnam using local materials and taking advantage of low personnel costs, according to the sources.
The company's declared corporate tax was some 113 million yen in 1999 and 340 million yen in 2000.