Jobs targeting Chinese workers in Japan have highlighted illicit payments in which half of wages is paid in yen and the remainder in renminbi, revealing a structure that is difficult for tax authorities to track.
The issue has been presented as a case in which payments for goods and services in Japan bypass domestic financial institutions, making fund flows difficult for the tax authorities to see. It was also cited in the Budget Committee of the House of Representatives.
Investigations of jobs and businesses targeting Chinese customers, as well as communities on WeChat, have revealed transactions in which funds move overseas even though the work is performed in Japan. Cases have particularly been reported in which wages are paid in a combination of yen and renminbi or through renminbi accounts.
In wage-payment arrangements, small and midsize jobs targeting Chinese workers have reportedly offered consultations involving half the wages paid in Japanese yen and the remainder through renminbi remittances or WeChat payments, or the entire amount paid in yen cash. The stated intention is reportedly to avoid paying part of income tax, resident tax and social insurance contributions.