Japan's Prime Minister Fumio Kishida (right) answers questions from reporters at the prime minister's office in Tokyo on Jan 19, 2024, after prosecutors charged eight people including two lawmakers from ruling Liberal Democratic Party over a funding scandal, with three of its biggest factions saying they were disbanding. (JIJI PRESS VIA AFP)

TOKYO – A group of Japanese citizens has called on authorities to target the ruling Liberal Democratic Party lawmakers embroiled in a slush fund scandal, asking for their illicit payments to be classified as “miscellaneous income” and subject to taxation. 

The association also requested that all contributions received from political parties for policy activities — as well as donations received from individuals, support groups, and other political organizations for political activities — should be classified as “business income” and subject to taxation. 

The group’s members are waiting for a response from the National Tax Agency after submitting a petition to them on March 7. 

Many LDP lawmakers are accused of tax evasion connected to political fundraising events. 

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Allegations suggest that several LDP factions redirected funds from ticket sales back to some of their lawmakers and stored them in illegal slush funds. With no record of the payments in the financial statements of the factions or their members, the lawmakers would have evaded income tax on the funds. 

If the money the lawmakers received was originally considered to be political funds, it should be used for politics. But why would personal dining expenses be categorized as political expenses?

Naohiko Hasegawa, Lawyer

Takakage Fujita, a representative of the association, said the LDP’s slush fund practice is a clear violation of the Political Funds Control Act, and the submission of the petition to the National Tax Agency is an action taken in response to the anger of the Japanese people. 

“It’s shameful to make false financial reporting, taking advantage of the lack of penalties for lawmakers … Now, the members of parliament in Japan are in a state of mockery,” Fujita said. 

In the hope of expanding this movement across Japan, the association called on citizens nationwide to join a criminal complaint filed last month with the Tokyo District Public Prosecutors Office against 10 LDP lawmakers. The complaint is focused on allegations of secret funds and tax evasion.

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Naohiko Hasegawa, one of the lawyers representing the complainants, urged the tax authorities to thoroughly investigate the case and handle the situation properly. 

“If the money the lawmakers received was originally considered to be political funds, it should be used for politics. But why would personal dining expenses be categorized as political expenses?” Hasegawa said. 

“Even if it’s claimed to be used for political purposes, it’s a significant violation of election laws. In the end, the money was used for bribery. This is totally unacceptable,” the lawyer added. 

Shigeaki Koga, a policy analyst and a former official at Japan’s Ministry of Economy, Trade and Industry, told China Daily that the issue remains shrouded in mystery.

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“Over a considerable period and with a large number of lawmakers involved in similar schemes, they’ve received undisclosed funds, and we don’t know what the money was used for. Perhaps the issue persists because the LDP is trying to end it without revealing the details. The public is very angry about this,” Koga said.

Additionally, the deadline for tax filing is approaching. Ordinary citizens and small businesses are facing strict taxation, having to keep meticulous records and file taxes down to the last yen, while the actual rules of operation for politicians are very lenient. The stark contrast has multiplied the public anger, Koga added. 

Even from the perspective of LDP supporters, the scandal is something that cannot be forgiven, he said.

According to a survey of LDP members conducted earlier this year, when asked which party LDP members support, only 67.5 percent said they support the ruling party. This shows how angry everyone is about the slush fund issue, Koga said. 

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“The slush fund scandal has a very significant impact. It’s not just about the Liberal Democratic Party losing trust; it’s about the trust in party politics and the entire parliamentary system in Japan being shaken,” said Akira Yamada, a professor of the School of Arts and Letters at Meiji University in Tokyo. 

“Unless the LDP properly acknowledges this situation and reflects on it, there is a possibility that significant changes may occur in the next election. In other words, there is even a possibility that the current LDP administration may not be able to maintain its position,” Yamada said. 

He called for the Political Funds Control Act to be significantly strengthened as soon as possible to prevent dubious money from being used in politics without clear accountability. 

It remains unclear whether there will be an immediate change of government as it depends on the candidates that the opposition parties can field, Koga said. 

“If the opposition parties can present young candidates to contest elections, I think there will be a significant increase in the number of people who are fed up with the LDP’s politics,” he said.

Contact the writer at jiangxueqing@chinadaily.com.cn