Akari, Japan – The loss of millions of dollars in tax haven revenues has forced Japan to seek new ways to combat a growing tax evasion problem.
In a report to parliament Monday, the Ministry of Finance said it had uncovered an estimated $12.4 billion of tax evasion from China, the world’s biggest emitter of corporate tax evasion.
The total loss in revenue was $13.6 billion, the ministry said.
The report comes as Japan tries to cut back on the use of cash and a growing number of businesses have begun to stop accepting credit cards in order to keep payments.
The move has helped to reduce tax evasion by up to $4.4 trillion since 2009.
More:Japan has one of the worlds largest population bases and one of Asia’s most affluent economies, but its economy is also facing an unprecedented economic downturn.
That has led to the rapid rise of China’s economic footprint in Japan.