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6.8 billion for the financial year to
October 2001. Honda Motor has pulled its capital from Mugen but still teams with the firm to participate in auto races. All of Mugen's operations facilities and employees were handed over to M-TEC Company, set up by a relative of Soichiro Honda, while Mugen
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Prosecutors alleged that
Hirotoshi Honda approved the transactions, although he has claimed he was also a victim and only signed the tax documents prepared by his auditor without knowing about the crime. Prosecutors suspect Mugen hid its income by moving funds to a company named MG Estate under
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Japanese prosecutors had arrested
Hirotoshi Honda in 2003, hours after prosecutors launched a criminal investigation into Mugen, which has business relations with Honda Motor Company, on suspicion of dodging
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machine lease and other fictitious transactions for three years through to
December 2000. Since his arrest in 2003, Hirotoshi Honda had stepped down as the company president.
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On May 25, 2006, Hirotoshi Honda was found not guilty of charges of tax evasion, but
Presiding Judge Yasuo Shimoyama of the Saitama District Court ordered Mugen to pay
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240 million in fines. The judge ruled that auditor Norio
Hirokawa played the central role in the tax evasion scheme, sentencing him to three years imprisonment.
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1 billion in corporate taxes. Norio
Hirokawa, 60, the company's auditor, was also arrested over his alleged involvement in the tax evasion.
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Yamaguchi, Yuzo (July 7, 2003), "Honda founder's son held in tax evasion case; Prosecutors allege his firm reported bogus expenses",
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Hirotoshi Honda is a board member of MG Estate, which has since been renamed GE Seirijigyosha. Mugen reported sales of about
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continued corporate existence only to participate in court proceedings.
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from the article and its talk page, especially if potentially
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Mugen
President Honda found not guilty in tax evasion case
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Son of Honda Motor founder arrested over tax evasion
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