Ufotable Founder Hikaru Kondo Admits Tax Fraud

Ufotable is a well-known studio providing us anime like the Fate series, Demon Slayer etc. It was founded by the former staff of TMS Entertainment. The studio was formed in October 2000. At present, Hikaru Kondo is the acting president. Ufotable has been under the official’s eye since March 2019. The studio has been accused of tax fraud. Now, Hikaru Kondo has acknowledged this allegation on July 9.

anime-by-unfotable
Anime by Ufotable

What was the Ufotable tax fraud?

The studio was alleged to have hidden a part of its income from 2015 to 2018. This revenue was earned through Ufotable’s cafes and merchandise. The studio had failed to pay 138 million yen which is about 1.25 million US$. In 2019, it was revealed that a search was performed on the studio for tax evasion. Previously, the amount was anticipated to be 400 million Yen, i.e. 4 million US$. The studio and President Hikaru Kondo were booked for violating the Corporation Tax Act and Consumption Tax Act.

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Ufotable President Hikaru Kondo’s View:

Hikaru Kondo had formed this studio in October 2000. Kondo admitted to the allegations on July 9th, 2021. He said that he didn’t think his tax evasion would affect the studios. The prosecution has assured that Ufotable has already filed a corrected tax report and paid the relevant sum. Kondo resigned from his position as the chairman of the executive committee in 2019 for Machi Asobi.

hikaru-kondo-ufotable-president
Hikaru Kondo Ufotable President

Studio’s action towards the accusations

The studio has agreed to the indictment of hiding its income from cafes and merchandise. Ufotable has confirmed to have deposited the appropriate sum of money from its corrected tax report. The newspaper Mainichi Shimbun had alleged the studio for 139 million yen in 2020(about US$1.28 million). In July, the indictment stated the amount to be 137 million yen. However, the amount changed to 138 million on the September 17th hearing of the matter. Whether the studio pays up the tax or not, the damage has already been done. The studio would be facing backlash from the viewers and service providers. There is one other reason for this.

In April 2019, the Weekly Bunshun Digital magazine also posted an article about Ufotable. The paper said the studio owed 400 million Yen. It was reported that the studio had misappropriated funds raised from a charity auction. The funds were supposed to be for the damages of the 2011 Tōhoku earthquake. If the allegations had been proved, it would’ve led to a 10-year prison sentence. The Tokyo Regional Taxation Bureau searched Ufotable’s offices but didn’t put any charges.