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Japanese Investors Evade $690M Taxes via Singapore Loophole

7/7/2025

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Summary

Story summary

Japanese investors, using Singapore as a conduit, dodged around 99 billion yen ($690 million) in taxes from 2020 to 2022 by exploiting a treaty loophole. They funneled funds through tax havens like the Cayman Islands into Singapore, where local firms invested in Japanese special-purpose companies known as tokutei mokuteki kaisha (TMK).

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Story summary

Japanese investors, using Singapore as a conduit, dodged around 99 billion yen ($690 million) in taxes from 2020 to 2022 by exploiting a treaty loophole. They funneled funds through tax havens like the Cayman Islands into Singapore, where local firms invested in Japanese special-purpose companies known as tokutei mokuteki kaisha (TMK).