BREAKING NEWS: Honda's son arrested over massive tax scam

Discussion in 'OT Driven' started by theSadisticBunny, Jul 1, 2003.

  1. SAITAMA -- The eldest son of the late Soichiro Honda, the founder of Honda Motor Co. Ltd., was arrested Tuesday over massive tax evasion of an engine manufacturer he runs, officials said.

    Hirotoshi Honda's company, Mugen Co., in Asaka, Saitama Prefecture, is suspected of evading the payment of about 1 billion yen in corporate tax by failing to properly declare more than 3 billion yen income for a three-year period until October 2000.

    Honda, 61, and Norio Hirokawa, a former auditor to Mugen, played a leading role in the company's tax evasions, said crime busters of the Saitama District Public Prosecutors Office when they arrested the two.

    Honda and Hirokawa cooked the company's ledgers with the fictitious cost of materials bought in dealings with a leasing company also run by the Mugen president.

    Investigators suspect that Honda and his firm spent the funds on land in Tokyo's Minato-ku.

    Mugen technology is known worldwide through the development of engines that won several Formula-1 events.

    Honda Motor Co. formerly owned a 40 percent interest in Mugen, but currently no formal relationship exists between the two companies. (Mainichi Shimbun, Japan, July 1, 2003)
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    source

    :eek2:
     
  2. Dimka.m

    Dimka.m Czar

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  3. Pro Street

    Pro Street New Member

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  4. TankRizzo

    TankRizzo Sensational Moderator Super Moderator

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  5. Son of Honda Motor founder

    TOKYO - Japanese prosecutors on Tuesday arrested Hirotoshi Honda, president of Formula One engine supplier Mugen and the eldest son of the founder of Honda Motor, over a massive tax evasion.

    The arrest came hours after prosecutors launched a criminal investigation into Mugen, which has business relations with Honda Motor Co. Ltd., on suspicion of dodging 600 million yen (five million dollars) in corporate taxes.
    "Our lawyer was informed by prosecutors about the arrest of our president today," said a spokesman for Mugen, based in Saitama, north of Tokyo.

    "But we believe he is innocent as there is no evidence proving his involvement," said the spokesman who declined to be named. "Facts will become clear after investigators probe the case carefully."

    Norio Hirokawa, 60, the company's auditor, was also arrested over his alleged involvement in the tax evasion.

    Television footage showed a dozen prosecutors entering the Tokyo house of the 61-year-old Mugen president and eldest son of the late Soichiro Honda, who founded the nation's third-largest automaker.

    Mugen, meaning infinity, was established in 1973 as a key member of Honda's racing team factories.

    The company has been involved in manufacturing, supplying and developing car engines for F-1 races for Honda and its group firms. Mugen engines have won four F-1 races.

    Prosecutors suspect Mugen hid its income by moving funds to a company named MG Estate under machine lease and other fictitious transactions for three years through to December 2000, Kyodo News Agency said.

    Hirotoshi Honda is a board member of MG Estate, which has since been renamed GE Seirijigyosha.

    Honda reportedly denied the allegation.

    "I apologize to the public for causing trouble," Hirotoshi Honda said in an interview with Jiji Press in February. "But I have never filled my own pocket. I have not been involved in the case."

    Mugen reported sales of about 6.8 billion yen 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.

    A Honda Motor spokeswoman said: "We cannot comment immediately as we just heard the news."
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    source

    again speechless.... :eek3:
     
  6. POScar

    POScar Believe in OFFTOPIC

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    1 billion yen is what? 10 million dollars?
     
  7. Buck-O

    Buck-O Guest

    Bye bye Mugen...:sadwavey:
     
  8. David St. Hubbins

    David St. Hubbins New Member

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    baaaaahahahahahahahah!
     
  9. DMClark

    DMClark Active Member

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    :Owned:
     
  10. Buzz Killington

    Buzz Killington nunc fortunatus sum

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  11. thats 4..I say 4 F-1 championships man. truely saddening..WHY WHY WHY. :wtc:
     
  12. indianghetto69er

    indianghetto69er New Member

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    1 billion yen is like 8 bucks
     
  13. Ben

    Ben Guest

    :sad2:
     
  14. mad8vskillz

    mad8vskillz Guest

    :blue: FUCK HONDA :blue:
     
  15. igo4bmx

    igo4bmx WHAT WHAT WHAT THE FU OT Supporter

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    they also scammed alot of honda owners telling us we have torque :wtc:
     
  16. Pro Street

    Pro Street New Member

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    :rofl: :bowdown:
     
  17. Buck-O

    Buck-O Guest

    Well, if Mugen was still part of Honda, id agree with you. Unfortunatly, Mugen is its own indipendant company, that still does near exclusive tuning for Honda engines.
    But their F1 program is an all in house effort, no honda involvement.

    If Honda was still involved with Mugen, Honda could easily bail them out, but becuase they are no longer one in the same...Mugen will fall.
     
  18. Why when you are super rich do you bother fucking with this stuff?

    I mean Christ, your last name is Honda, you are all but assured of a cushy lifestyle forever, and your kids and their kids, etc.

    Greed amazes me...truly amazing how stupid you can be and still be so intelligent at the same time. :greddy2:
     
  19. BLoG

    BLoG Scented Meat

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    this guy?

    [​IMG]
     
  20. Section8

    Section8 .

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    I hate it when Journalists don't get facts straight. "4 Championships, 4 races what's the difference?"

    asshats!
     
  21. I agree. The guy already OWNS an insurance company, besides Mugen..I dont understand the reason behind his actions. :confused:


    maybe he wanted some thrill in his life. who knows :dunno:
     
  22. Kramer

    Kramer Guest

    Stooopid Ricer Tricks
     
  23. hondaluva

    hondaluva likes free hugs...

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  24. sorry my bad. the article did say 4 F1 races. My apologies for causing the confusion.
     
  25. mucky

    mucky .

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    ¥1,000,000,000 Japan = $8,371,703 US

    I've heard of bigger tax scams. :hs:
     

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