Japanese man in expenses tax battle | AccountingWEB

Japanese man in expenses tax battle

A Japanese civil servant is challenging Japan's tax system by trying to claim loss-making bets as business deductible expenses.

The man, from Hokkaido, won 7.84bn yen (around £4.5bn) from horse racing bets over six years, but lost 7.27bn yen on betting stubs. 

According to the English version of Japanese newspaper Asahi Shimbun, he declared the 570m yen balance as 'miscellaneous income' as by his reasoning, because his other winnings were cancelled out by his losses, the losing bets were legitimate cost of business.

But he was challenged by his local tax department, which refused to accept that the losses were deductible and said he had failed to declare over 400m yen in income.

The man has filed a lawsuit with Tokyo District Court in retaliation, and argues that the amount of tax he's being ordered...


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Numbers and accountants....

Brend201 | | Permalink

You are asking for trouble if you don't get numbers right on a website for accountants.

If the gross winnings were 7.84 billion yen, the GBP equivalent would "only" be approx £46 million, not £4.5bn.  Net winnings of 570 million yen would be around £3.3 million, still pretty good, even for a lowly civil servant.  

His win margin is around 7% so I want to bet on the same horses that he does!