Tax audit uncovers hidden earnings at Mount Koya temple lodgings
Tax officials discovered that more than half of the temple lodging operators on Mount Koya failed to fully report their income, resulting in roughly 100 million yen of unpaid taxes.
In fiscal 2025, the Osaka Regional Taxation Bureau conducted investigations into religious corporations that operate temple lodgings on Mount Koya, a UNESCO World Heritage destination popular with tourists. The audit covered more than ten of the roughly fifty corporations, and over half were found to have concealed income, leading to unpaid taxes exceeding 100 million yen. The bureau also imposed additional taxes and penalties amounting to about 60 million yen.
Among the cases, Soujiin temple was highlighted for recording private expenditures by the head priest’s family as corporate costs, which the bureau described as a "hidden salary" and noted failures to withhold income tax. Authorities stressed that while offerings and fees for religious rites are exempt, revenue from profit-making lodging services must be taxed. The scandal coincides with a surge in tourism, as Mount Koya recorded a record 117,000 foreign guests in 2025, underscoring the financial importance of accurate tax reporting for these historic sites. Soujiin appears to have settled the assessed amount but declined to comment further.
