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Are Japanese Hostesses Not Paying Income Tax? Part 2

Nikkan SPA - Original Japanese Date: April 27th, 2014
English Translation Published: April 1st, 2016

Some Japanese hostesses may be making big money via lonely male customers, but they are certainly skipping out on paying their fare share of taxes.

(Translator's note: This post is a continuation of a previous entry.)

 

There are also many Hostess clubs that keep 2 sets of books. One ledger contains the real sales for top ranked hostesses and the other one—the one that is used for tax reporting—lowers their sales volume by a great margin. Misreporting the income in this fashion is tax evasion no matter how you look at it.

Of course, most clubs know this and have ways to make tax collectors work hard for their money: for starters, every few years they will change their company name. Along with this, the previous company will announce its bankruptcy along with having difficulties locating their financial records. Tax offices are becoming smart to these tricks and are starting to go after individual hostesses, but it's still an uphill battle.

Thus, there are many hostesses who only pay 10% of their earnings and have lifestyles that are certifiably jet-set. There even was a case of one high-rolling Japanese hostess who forked over 50 million yen (approximately $500,000USD) to buy a fancy Shinjuku apartment in lieu of taking out a home loan. Actions like this make the tax office suspicious as it raises the question as to where she managed to amass such a formidable fortune. Could this all have come from working part-time as a hostess?

It's harder now than in the past to hide money when high interest loans and “Hey grandma, it's me! Give me money!” calls were still a thing. One of the few remaining routes for hostesses to hide their money is by buying expensive goods.

Not all hostesses are downright evading taxes, but certainly many are not accurately reporting their real income. Perhaps many simply engage in off-hours lovemaking with clients and are paid entirely under the table? Is this where happiness is found in our society?

 

Written by Kazuhisa Kimura

 

(Translator's note: The tax offices are catching onto these methods Hostess Clubs and the like use to avoid paying their fare share of the pie. It doesn't help that many hostesses have severe tendencies to flaunt their newfound wealth in the most brazen of ways. One such hostess this author knows personally takes vacations to a certain tropical destination—every month.)

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