Tax authorities investigated a construction firm run by the father of Defense Agency chief Gen Nakatani in connection with an alleged tax evasion case involving a secretary of former Liberal Democratic Party Secretary General Koichi Kato, sources close to the case said Sunday.
The Tokyo Regional Taxation Bureau investigated the Tokyo branch of Daioh Construction Co., based in Kochi and run by Ken Nakatani, the sources said.
The senior Nakatani admitted that the bureau investigated the branch around Friday but denied a media report that his firm paid 10 million yen to a company run by Kato's aide Saburo Sato.