The Tokyo District Court on Wednesday ordered Tokyo-based Maruha Corp., a major producer of seafood, to pay 100 million yen in fines for violating the Customs Law by evading taxes on imported octopus.
The firm was accused of falsifying certificates of country of origin to make it appear that some of its octopus came from developing countries for which Japan has preferential tax treatment.
The court also sentenced Manabu Atsumi, former head of the firm's second marine products division, to a suspended two-year prison term. Two of his former subordinates each received suspended 18-month prison terms.
According to Wednesday's ruling, the three falsified documents on octopuses from countries that include Senegal to make it appear that the shipments came from Gambia and other nations whose products are exempt from import tariffs in Japan. The falsifications took place on 281 occasions between 1996 and 1999.
In handing down the rulings, presiding Judge Kohei Ikeda pointed out that the company "had been systematically evading taxes for a long period of time by using expert knowledge."
He added that the defendants' responsibility was grave, as they abused a system that is designed to help developing countries, just so their firm could make a profit.
The firm and the three individuals had owned up to the allegations.
Industry insiders have said that such falsification is commonplace, and several other firms have been investigated by customs authorities. The Tokyo District Public Prosecutor's Office in December charged an Osaka-based firm and two of its senior officials with tax evasion.