Hikari Tsushin sues over rejected tax loss carryforward appeal

Hikari Tsushin, Inc. announced on December 26, 2025, that it has filed a lawsuit with the Tokyo District Court. This action seeks the revocation of a correction disposition following the rejection in July 2025 by the director-general of the National Tax Tribunal of the group's request for review. The dispute stems from a tax audit conducted by the Tokyo Regional Taxation Bureau for fiscal years 2018 through 2022, concerning corporate reorganizations involving its former subsidiary, Intea Holdings, Inc.

Tax authorities had disallowed a portion of Intea’s tax loss carryforwards, leading Hikari Tsushin to pay approximately JPY 2.1 billion, which included corporate tax, local corporate tax, and additional tax for underreporting. Hikari Tsushin maintains that its corporate reorganizations and tax treatments were lawful and appropriate, based on extensive deliberation with professional advisors. The company also addressed media reports, stating that claims of Intea ceasing to be a subsidiary after its acquisition, or accusations of the group abusing the consolidated taxation system, are factually incorrect.