The son of Honda Motor‘s founder was arrested on Tuesday on suspicion of evading about 1 billion yen ($US8.33 million) in corporate taxes at an engine maker he headed, according to Bloomberg News.
Go deeper with GlobalData
Citing Japanese prosecutors, the report said that Hirotoshi Honda, former president of racing car engine maker Mugen Co. and the eldest son of Honda Motor’s founder, the late Soichiro Honda, allegedly hid income by reporting fake deals and fictitious material costs.
According to Bloomberg News, the prosecutors said the 61-year-old Hirotoshi Honda and Mugen’s auditor, Norio Hirokawa, allegedly falsified the accounts between November 1, 1997 and Oct. 31, 2000. Hirokawa was also arrested, the report added.
Bloomberg News said that Mugen, founded in 1973, was engaged in designing, manufacturing and supplying car engines for Formula One races from 1992-2000 but, according to the company, Honda has now stepped down from the company’s top post.
The report noted that Honda Motor, which is now Japan’s second-largest car maker, once held a 40% stake in Mugen but transferred its entire stake to Hirotoshi Honda in 1999.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
