NHK has learned that Japanese tax authorities have ordered a former director of an Osaka-based medical corporation to pay penalty taxes for failing to declare income worth millions of dollars from reselling exclusive supercars.



Informed sources say the 64-year-old man did not report income from resales of several luxury cars, including a Ferrari, over the four years through December 2023.



The sources say the Tokyo Regional Taxation Bureau and others notified the man that he failed to declare about 500 million yen, or roughly 3.4 million dollars, and authorities imposed back taxes of about 2 million dollars.



Tax authorities are stepping up their investigations on supercar sales as some pre-owned vehicles are traded at higher prices than when they were brand new.



Income from sales of essentials such as vehicles for commuting are not subject to taxation. But the tax bureau appears to have judged otherwise, as the man resold his vehicles multiple times for his hobby and investment purposes.



NHK has tried to contact the man for an interview, but he has yet to respond.



The Japan Automobile Importers Association said the number of imported new foreign brand vehicles priced at around 138,000 dollars or higher and registered in the country was at a record high last year for the fourth consecutive year. Such data-taking began in 2003.



The association said the figure increased by about 1,000 to 8,400 compared with 2023. The vehicles include Ferraris and Lamborghinis.



At a pre-owned supercar dealership in Yokohama, a 2015-model of Ferrari, which had originally sold for about 241,000 dollars, was priced at around 414,000 dollars.



The staff of the dealership said used supercars in Japan are popular overseas as they are often in good condition. They said the vehicles are attracting brokers from the Middle East and other regions.



Koike Junji of the Aria Garage dealership said it is surprising that in recent years, some people overseas purchased vehicles of limited editions by phone without actually seeing them. He said that partly due to the weaker yen, such luxury vehicles are often sold to other countries.



Racing driver and auto critic Takei Hirofumi said supercars are purchased mainly by the wealthy, and the vehicle prices can go up easily as they are regarded as investments.
He said each supercar is engraved with a chassis number, which he said lowers the risk of buying counterfeits. He said many wealthy people are profiting from investing in supercars and reselling them.



As asset management methods are becoming diversified and globalized, the National Tax Agency is stepping up its investigations on undeclared income among affluent people by forming a special team.