Japanese tax authorities have investigated seven people including Chinese nationals on suspicion of evading consumption tax on luxury items purchased while they visited Japan. The tax authorities plan to collect about 760 million yen, or 5.5 million dollars, from them.

Sources say that the seven people had visited Japan since 2020. They purchased luxury-brand items including watches and handbags totaling more than 55 million dollars at department stores and other vendors in the western city of Osaka. They reportedly applied for duty-free concessions.

But the Osaka Regional Taxation Bureau determined that the seven were not eligible for tax exemption as they had stayed in Japan for more than six months and did not present proof that the items were shipped abroad.

Sources say that the seven people are suspected of receiving funds from resale agents to purchase items and being rewarded. They have reportedly already left Japan without paying most of the tax money.

The tax bureau says duty-free items are only for people who take them home as souvenirs. It says that it wants people to know that duty-free items cannot be resold.