Published 17:17 IST, October 29th 2019
Japan tax agency: Carlos Ghosn used corporate money for private use
Japanese tax officials have found out that former Nissan chairman Carlos Ghosn diverted corporate money for his private use, reported a Japanese daily.
Advertisement
Japanese tax officials have found out that former Nissan chairman Carlos Ghosn diverted corporate money for his private use, reported a Japanese daily. The National Tax Agency (NTA) of Japan reportedly reached the conclusion that Ghosn made donations to a Lebanese University and paid consultant’s fees to his sister using Nissan money.
Personal use filed as office expenses
The tax agency has reportedly ordered Nissan to pay taxes on the 150 million yen which was recorded as office expenses for three years. The NTA determined that the money was spent for private purposes hence liable to pay taxes. Ghosn is awaiting trial in Japan on financial misconduct charges after Nissan claimed that the former chairman used the company’s money for personal gain. Though the revelation will not lead to a criminal case, it is considered that the findings will bolster Nissan’s case against Ghosn.
Advertisement
Arrested in November 2018
Carlos Ghosn served as chairman and CEO of Renault as well as chairman of Mitsubishi Motors. He was also the chairman of the Renault–Nissan–Mitsubishi Alliance, a strategic partnership between the automobile manufacturers. It is said that Ghosn was working on strengthening Nissan’s relationship with Renault when he got arrested in November last year. Ghosn is currently out on conditional bail in which he is not allowed to contact his wife.
Advertisement
Ghosn's lawyers want dismissal of charges
Lawyers of Ghosn have filed a petition in Tokyo District Court requesting dismissal of charges. The lawyers cried foul calling the charges a result of collusion between prosecutors, government officials and executives at Nissan Motor.
Advertisement
“To execute this scheme, the prosecutors illegally ceded their investigative powers to certain Nissan employees and consultants, and together with Nissan, unlawfully trampled Mr. Ghosn’s legal rights in Japan and around the world,” said the lawyers in a statement.
Junichiro Hironaka, one of Ghosn’s lawyers, said that they are asserting his innocence in the case but the petition to dismiss the charges asserts that, even before and beyond guilt or innocence, the case itself is unlawful.
Advertisement
“They wanted a criminal case and so they went digging around, back in time, to concoct a case,” said Hironaka.
(With Inputs from Agencies)
16:02 IST, October 29th 2019