Japanese public prosecutors have indicted a Tokyo-based advertising firm, Solarie, along with its president and two executives on tax evasion charges.
The president, Reika Kuroki, is also a well-known social media influencer with a substantial online following.
Prosecutors allege the group evaded a combined ¥157 million, or roughly $1 million, in corporate and other taxes.
None of the three defendants were arrested following the indictment.
Kuroki operates online under the influencer name Reika Miyazaki and has around 500,000 followers on Instagram.
She is known for promoting cosmetics and consumer products through paid advertising campaigns.
Investigators said advertising agencies paid promotional fees to Solarie rather than directly to Kuroki.
According to the indictment, Kuroki allegedly concealed approximately ¥496 million in income over multiple fiscal years.
The concealed income reportedly covered the year through January 2021 and the two years through January 2024.
Prosecutors claim this resulted in the evasion of about ¥126 million in corporate and related taxes.
Kuroki is also accused of failing to pay ¥31 million in consumption and other taxes between February 2022 and January 2024.
Authorities believe funds gained through the alleged tax evasion were used to support Solarie’s operating expenses.
The case highlights increasing scrutiny of influencer-led businesses by Japanese tax authorities.
Officials have stepped up oversight as social media marketing becomes a significant source of income.
Influencers operating through corporate structures face the same tax obligations as traditional businesses.
The indictment suggests authorities are targeting both personal and corporate tax compliance.
In a statement posted on Instagram, Kuroki addressed the allegations publicly.
I am reflecting deeply on my conduct and will swiftly make the necessary corrections and pay taxes.
Kuroki said.
The post did not address specific details of the charges or the alleged amounts.
Legal proceedings are expected to continue without the defendants being held in custody.
The case has attracted attention due to Kuroki’s public profile and online influence.
Observers say it could prompt greater compliance efforts across Japan’s influencer economy.