The Tokyo District Court sentenced beauty influencer Reika Miyazaki to two years and six months in prison, suspended for four years, for tax evasion [1, 2].

This ruling highlights the increasing scrutiny of high-earning social media personalities by Japanese tax authorities as the digital economy grows. The case underscores the legal risks for influencers who manage large corporate earnings without proper fiscal compliance.

Miyazaki was found to have evaded approximately 157 million yen [1] in corporate taxes and other obligations. During the proceedings, Miyazaki said she recognized the evasion of approximately 157 million yen [3].

The court determined that the defendant filed fraudulent tax returns to reduce her tax burden. The presiding judge said the motivation was a "selfish idea" to reduce the amount of tax paid [4].

Under the terms of the sentence, Miyazaki will not serve time in prison provided she maintains good behavior during the four-year suspension period [1, 2]. The court's decision reflects a balance between the severity of the financial crime and the defendant's admission of guilt.

The case comes amid a broader trend of the National Tax Agency targeting individuals with significant online earnings. By focusing on corporate tax evasion, authorities aim to deter other influencers from underreporting income generated through brand deals, and sponsorships.

“"selfish idea" to reduce the amount of tax paid”

This sentencing serves as a warning to the growing class of digital entrepreneurs in Japan. As influencers transition from individual creators to corporate entities, the complexity of corporate tax law increases. The court's focus on the 'selfish' nature of the evasion suggests that the judiciary is less likely to accept ignorance of tax law as a defense for high-profile earners.