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December 12, 2007 |
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KAJIMA CORP: Conceals JPY600 Million in Income for Two Years Kajima Corp. concealed JPY600 million in income for the two years through March 31, 2006, earned from the construction of two plants for Canon Inc., various reports say. Akiko Ikeda and Katsuyo Kuwako of Bloomberg News writes that the Tokyo-based contractor claimed that it made payments to subcontractors for work on Canon digital camera and printer cartridge plants in Oita prefecture. Kyodo News, citing its sources, reports that the Tokyo Regional Taxation Bureau determined that the JPY600 million in excessive subcontract costs were taxable "social expenses." The report adds that while Kajima did not disclose how it used the money, Kyodo News' sources said it may have been used to successfully win the contracts. Kajima, according to Kyodo News' sources, gave the appearance of having paid dozens of local subcontractors, but some of them were not involved in the project. The JPY27-billion project included land reclamation and construction of the digital camera factory, relates Kyodo News. Bloomberg, in its report, said that Canon released a statement in response to similar reports from the Mainichi Daily newspaper and public broadcaster NHK, saying it was not involved in the selection of subcontractors and that it selected Kajima for the projects through a competitive process. A Kajima spokesperson declined to comment on the "particular cases" but is quoted by Kyodo News as saying, "We have cooperated in the investigation by the Tokyo Regional Taxation Bureau and have completed our tax payments." Kajima Corporation -- http://www.kajima.co.jp/ -- is a Japan- based construction company. The Company operates in three business segments. The Construction segment is engaged in civil engineering and architectural construction works including dams, bridges, tunnels, skyscrapers and resorts, among others. The Development segment is engaged in the provision of development and consulting services of its construction business, as well as the development and operation of golf courses. The Others segment is involved in a variety of construction-related and peripheral businesses, such as architecture, engineering, financing, real estate, service and other related businesses. Headquartered in Tokyo, the Company has 131 subsidiaries and 66 associated companies. 1-2-7, Motoakasaka Minato-ku, TKY 107-8388 JPN +81-3-34043311 (Phone) |
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