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G.Communication Fails to Report Income
The Yomiuri shimbun and other news agencies are reporting that president of G.communication, Masaki Inayoshi, has failed to report ¥500 million (about $5.2 million USD) in income. The unreported income comes from him selling 230 shares in G.communication in 2007. Inayoshi reported the sales of some shares in 2006, which led the National Tax Agency to believe that his failure to report the income this time was intentional.
The story doesn't end there. The NTA audited 10 other G.communication group companies and found that they have failed to report some ¥1.5 billion ($15.8 million USD) over the past several years. Some of the companies were apparently in the red and could pay their taxes.
reports that the NTA says Inayoshi owes ¥100 million ($1 million USD) in back taxes and other charges.
The numbers in the Chunichi shimbun are a bit different. It reports that the NTA assessed 13 G.communication group companies ¥295 million in back taxes for failing to report income over the past 5 years. ¥170 million of this stems from G.food and its opening of several restaurants. The NTA also told G.education that it was not allowed to list ¥30 million in airfare to help foreign instructors return home as a loss. ( 一方、同社とグループ会社の計１３社も昨年決算期までの５年間に申告漏れがあり、計２億９５００万円を追徴された。うち「小樽食堂」「ハイカラヤ」などを展開する「ジー・フード」社の追徴額が約１億７０００万円だった。「ジー・エデュケーション」は旧ＮＯＶＡを引き継いだ際、帰国できない外国人講師に支給した飛行機代約３０００万円を損金としたが、同国税局から損金に当たらない交際費だと指摘されたという。)
Other reports, like this one in the Iwate shimbun shed some more light on G.education's exaggerated accounting practices. You will recall that G.education took in refugee NOVA students and only charged them 25% the normal lesson fee as an incentive to continue studying. G.education booked the discount as a loss and apparently did the same when it signed up new students. (うち１社はＮＯＶＡの英会話教室事業を引き継いだ教育会社。ＮＯＶＡに受講料を支払ったまま授業が受けられなくなった元受講生への「救済策」として受講料 を割り引く優遇制度を適用。割引分は同社の「損金」として計上してきたが、優遇制度の対象とならない新規の受講生の受講料についても同様の会計処理をして おり、国税局は損金を過大に計上した可能性があるとみているもようだ。 )
Inayoshi, however, denies that he was intentionally hiding income.
That Inayoshi has found himself in trouble with the authorities is nothing new. Shortly after G.communication took over NOVA, The Japan Times reported this:
The aggressive [expansion] strategy has at times led to shady deals that have caught the attention of the government.
In October 2006, the Financial Services Agency ordered G.communication to pay a ¥390,000 fine for insider trading after purchasing shares of one of its subsidiaries that was planning a capital increase before the information became public.
This isn't the first time he's been caught. It's tough to say how this run-in with the taxman will affect G.communication, but it's certainly the kind of attention the company doesn't want. It is, however, is another example of how shoddy and shady management is par for the course in eikaiwa.
Yomiuri article
経営破綻(はたん)した英会話学校大手ＮＯＶＡの事業を引き継いだ「ジー・コミュニケーション」（名古屋市北区）グループの稲吉正樹代表（４０）が、自社株の売却益を申告しなかったとして、名古屋国税局から約５億円の所得隠しを指摘されていたことが２日、わかった。
また、グループ会社約１０社も同国税局の税務調査を受け、２００８年決算期までの数年間で総額約１５億円の申告漏れを指摘された。
関係者によると稲吉代表は０７年、ジー社株約２３０株を売却し、約５億円の利益を得たが申告しなかった。０６年に売却した際は申告していたことから、同国税局は「意図的に申告しなかった」と判断したとみられる。
グループの教育会社は、旧ＮＯＶＡへ支払った受講料の約２５％を追加した場合、受講を継続できる優遇策を設けていたが、この受講料の経理処理などについても、同国税局から是正を求められたとみられる。
信用調査会社によると、ジー社は１９９７年設立で、今年３月期の売上高は約２５億円。稲吉代表は「国税局から申告漏れを指摘されたが、意図的なものではなかった」とのコメントを出した。
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Comments
Wait. What?
Airfares for foreign instructors to return home? As far as I know this was never offered.
So the head of GCom is dodgy as well.
Well THAT'S a surprise.
As said time and again on here, eikaiwa is a complete RACKET, schools often being run by shady, semi-gangster types who will do anything to make a quick buck and protect themselves at all costs, even if it means slaughtering their staff in the process.
If you've got any sense whatsoever, for God's sake, pull your finger out and get out of there asap.
The Ripper
I believe there was some talk of tickets to be offerred. However, it seems highly unlikely that, if any were, that an ammount like the one claimed was spent. Of course, if that were the case, they would have records. Mr Flemming should perhaps check this out, and register a protest with his boss if he finds any dishonorable behaviour has taken place. 'We know who you are: we have records'
Well I’ll be, the Saviour of the Pink Bunny has maggots crawling all over it. What a surprise, NOT!
THORN
People, listen, I was told of an extraordinary conversation between to G Comm workers today, who are, you know, “in the know” (well, as high up there and “in the know” as gaigin can be, in such an operation).
Anyway, they said, the situation at G Comm Nova is not sustainable, at that the G Comm powers to be are already making preparations to shut the Nova experiment down, outright.
They would not give much detail, other than to say, a senior Japanese staff member was heard saying that the Nova experiment was a cancer that threatened to bring down the entire group, and if the cancer is not cut out, to stop the haemorrhaging, then it could be curtains, period, for the entire collection of companies.
The same guy said that schools will start closing from this month, and that the decision has already been taken.
The warning signs are there folks. Get out now, while you still can.
THORN
I can't believe it actually lasted this long.
A) It's impossible that any gaigin could have inside information as good and detailed as what THORN reports.
B) It is also impossible that such a conversation has NOT taken place inside G. comm!
C) G. comm is f*cked!
D) I wonder if the bankruptcy court will look for a savior for the failed NOVA / failed G. comm fiasco mess that they created in the first place! Of course you know it's all the gaijin's fault, right? I wonder how, exatly, they will spin it this time?
G-comm is cooking the books to run in the red to slash senior teacher's salaries.
With all those years of teaching English in Japan, you'll have no problem landing a new gig. You could be an ALT on dispatch. I heard they are pulling like 110,000 Yen a month these days.
Or you could finally grow up and look for a real job.
If you're a "senior teacher" and haven't been saving a planning you next move since making the mistake taking a job with G-Comm, then you deserve what's comming. Maybe you can teach English for food for a few months like you did two years ago.
I sense a psy-op through your childishly mean-spirited rant. If you knew anything about teaching English you should have corrected my use of the apostrophe. I didn't realize that this was a forum to bash comments. You grow up.
Eikaiwa is pretty much about assimilation and conversation, and ripping people of blind in advance for that wonderful and wholesome plastic experience.
No-one gives a rat’s arse about an apostrophe, and if that apostrophe is all you have to hang your hat on, Senior English Teacher, then you need a frontal lobotomy (although it would appear being stuck in Eikaiwa has already given you one of those, although I am sure there are many occasions, where you feel “Is that a lobotomy, or a bottle in front of me”).
Perhaps you have not heard of Einstein’s Infamous Theory of Eikaiwa:
“E + G = L”
Grow up, and get a real job (that is unless of course, you are just taking the piss)
THORN
Hope to see Ino-chan and his band of merry men get hog tied for doing such a wonderful job of fucking up so many people by putting them on hold, no stand by, then no... fired your gone. Then the schools they opened are/were like the wild west of anything goes. You give any idea and they take it as genius!
I hope it all crashed down sooner than later!
"I hope it all crashed down sooner than later!"
Oh yes!!!!
Hope you don't lie THORN
What is a real job?
Frankly if you are doing anything that is "english teaching" related, then you are no better than any Nova instructor, unless you have a teaching degree and teach at a University or a School...beyond that, you are all dancing monkeys based on the premise that Nova isn't a real job.
Thorn, you need a chill pill and to let go of your past at Nova. I have. Certainly you can? Or did it ruin your life so much that you cling on to the pain? And, if it did ruin your life, how crappy were you?
I was no ass licker and found myself at odds with AAMs and still have walked away without a scar. So, what is wrong with you?
Agree with the above post - in fact, the sooner everybody realizes it, the better - that eikaiwa means English conversation, that is, talking to people. As said, that is not "teaching".
English teaching and Eikaiwa are 2 different things.
The Ripper
No, No, NO! I will never let go of my bitterness, until the ugly stain of Eikaiwa is removed from the face of humanity, and all that have had contributed to its manifestation, are exterminated.
EXTERMINATE, EXTERMINATE, EXTERMINATE, EXTERMINATE !
http://www.youtube.com/watch?v=Or-epXMvTM8
THORN
All of you bunch of losers don't get the fact that 'shady' is the only way an eikaiwa can work. There isn't enough money in it to run clean. You need to do some dodgy deals otherwise you go under at the first sniff of difficulty. That is just the way it is.
losers
That's right Mr Loser - eikaiwa can never be anything but shady and dodgy. Just like any cheap, tacky product with no substance.
The Ripper
If you don't mind being part of a shady ordeal to experience some time in Japan, then you can deal. You will not be treated well, respected by your employer or society in general nor earn a decent wage. That's the way it is. For some reason there is a bunch of retards who cannot grasp that situation and are delusional to idea that they are employed in a decent, productive, beneficial profession that has some type of industrial ethics.
If you want a productive career or to get some ounce respect beyond a commoditified English puppet, then quite working for an eikaiwa or as an ALT. If you want make peanuts a play in Japan that’s fine too, but you can’t have them both working at an eikaiwa.
What the hell is all this garbage?
Back on topic, I wonder what the chances are of Inayoshi getting arrested.
I think the chances are low. They'll make him pay his back taxes plus a fine and leave it at that.
Sorry about the spam. One day, it was as if the captchas suddenly stopped working. The filter now catches most of the spam, but it still manages to get through. Don't worry about it. I take it down as soon as I can.
Shawn
If some people have bought a franchise NOVA school, surely those schools won't need to close - they could just continue, but without the NOVA logo/banner, right? Their continuation isn't really dependent on what Inayoshi decides, as they're already up and running. And there are lots of franchise schools, so it's probably not all that desperate a situation - not like Oct 2007 when old NOVA crashed.
I would imagine those franchise owners who opted to stay open would be able to continue using the Nova name and would do so, since that was what they were paying for. If they didn't want the Nova name, why buy the franchise in the first place?
Whilst immediate nationwide unemployment could be staved off, as you say, by franchises remaining open, how many of them would choose to stay open with the lovely name buggered up for them again, and then how many of those that did stay open would last the distance, given that a high proportion of purchasers were somewhat self deluded in the first place is anyone's guess.
But the owners of the schools may have to close and will have to change the name, which will be the good thing to do. You see the franchisee, pays the initial company a fee to use their brand and name. The initial company owns the rights to them. I would not be surprised to see GCom, due to their sleaziness, ask the franchisee owners to buy their scholl outright from them, to get some money, or close the school completely. I am not sure too if the buildings themsleves are owned by GCom or franchisee, that could also be a sticky situation.
Yes, but the franchisee has already paid for the franchise. The ongoing fee is for services. The franchisee would need to be refunded in full if the right to use the name was being withdrawn.
What would most likely happen in the event of a crash is that they would try to onsell the rights to the brand. The new right holder would then have to pay back the franchisee to stop them using the brand, or start providing services and charging the fee. However, until such time as a buy-in party was found, if ever, the franchisee could continue to use the name as usual.
The benefits of the Nova name have already proved to be minimal. However, no brand name means no special advantage. No special advantage means certain failure in the majoity of cases. Most of these franchise purchasers are not good busniness people to begin with (or they would not have bought the franchise). Moreover, most of them know little or nothing about language education. You could only expect schools to survive in special situations where the above did not apply. For example, a juku owner may have bought the franchise as an add on to an existing business.
I was told today by my area manager that my branch (Sendai) is to close at the end of the month as are the others in Northern Tohoku (Akita & Hirosaki). We are only a handful of teachers here so I don't know if this is a nationwide move. Can anyone confirm?
Same here. I have until the end of August.
I’m sorry to hear that you and your colleagues are will be out of work soon. But it sounds it could be a positive development for all of you. It’s time to make a decision to decide which direction you will take your life. I hope you all quit NOVA and most of you get out of the Eikawa rut. Back when I was doing it, I knew some intelligent people wasting away their talent in that worthless industry. Make the best out of this situation and quit allowing yourself to be victimized by a shady company.
said "ex-nova and lovin' it!"
... Fukushima branch and other Northern closures would be a pure coincidence? I don't think so...