Ufotable CEO pleads guilty to tax fraud on first day of trial

At the first hearing on tax fraud charges against animation studio Ufotable, Ufotable CEO Hikaru Kondo admitted to intentionally misrepresenting sales figures for cafes and surrounding stores. Court documents state that one of the main reasons behind Kondo's actions was the prospect of a future decline in business.

Kondo is on trial for evading 138 million yen (about $1.2 million) in taxes. Kondo is alleged to have concealed more than 441 million yen (about $4 million) worth of Ufotable cafe and merchandise sales from 2015 to 2018. On September 17, 2021, the CEO pleaded guilty to the charges. He said he "felt that the company would not be affected if (he) evaded taxes" and apologized and bowed deeply in court.

The following is a translation of the prosecution's opening statement:

As the popularity of its animation project (Ufotable) grew, and its cafe and merchandise sales became successful, (the defendant) repeatedly excluded portions of its revenue in order to prepare for future declines in business and retain as much money as possible for himself.

In July this year, Ufotable issued an official statement regarding the tax fraud allegations and apologized to fans and related parties. In addition, the studio paid the underpaid taxes in full to the national tax authorities. It also promised to comply with laws and regulations in the future.

Ufotable's well-known works include "Demon Slayer" and the new "Fate" animation series. The studio also participates in the development of some game OPs, such as the recent "Tales of Akihabara".