*Tracking the Whereabouts of Taxes: Exposing the Black Box*

May 12, 2023

Is "Kasumigaseki," where central government offices are concentrated, and local governments intentionally making the use of tax money difficult to see? — As I unraveled this hypothesis through reporting, I arrived at unpublished "primary information" on social media and other sources, which piqued my curiosity. However, reporting under my real name always brought a sense of fear, and I hesitated many times. The only way to dispel my anxiety was to keep gathering more information through reporting.

It all started with the government's "Sustainable Benefit Program." This program provided up to 2 million yen to businesses whose revenues had deteriorated due to the COVID-19 pandemic, with total benefits reaching 5.5 trillion yen. However, this project was outsourced to a certain general incorporated association established by major advertising agencies and others. Although it was also called a "middleman corporation," one person involved testified that the purpose was to "legally" bypass the scrutiny of government agencies by using a general incorporated association. It was a method that the government had no choice but to overlook for many years.

I also delved into the issue of "personnel cost unit prices" in the outsourced work for the Tokyo Olympics and Paralympics. Venue management contracts and their breakdowns stated amounts such as "up to 350,000 yen per person per day," which is about five times higher than in other government-outsourced projects. Later, bid-rigging in the venue management tenders came to light, leading to a series of arrests among officials from the organizing committee and the contracted companies. The documents I obtained were likely the basis for retroactively adjusting amounts—which had been decided at prices close to the requested asking price—as "personnel cost unit prices." I sought to uncover the reality of these veiled "personnel cost unit prices."

In addition, the "handout" policies that supported medical institutions and companies during the pandemic showed a clear contrast between their effective aspects and their eccentric uses. I also covered the reality of public funds being privately exploited in "local" settings such as fire brigades and agriculture, funds referred to as "legal slush funds," and the ever-increasing costs of defense equipment.

Tax revenue for fiscal 2021 reached a record high of 67 trillion yen. On the other hand, social security expenditures continue to swell, and fiscal spending during the pandemic exceeded 100 trillion yen. Currently, there are moves to increase taxes under the banner of "drastically strengthening defense capabilities," but perhaps there are things that should be reviewed before that——. With this awareness of the issues, I spent three years following Kasumigaseki during the "emergency" of the pandemic.

*Tracking the Whereabouts of Taxes: Exposing the Black Box*

Yuki Takahashi

Kobunsha Shinsho

248 pages, 946 yen (tax included)

*Affiliations and titles are as of the time of publication.