So during the pandemic the company i worked for decided to change how they give out salaries to employees where they send 70% of the salary through bank and the other 30% is given in cashlike some kind of monthly bonus. They didnt give out a reason or anything to the employees its just a change that happened instantly. Figured they do it to lessen the tax they have to pay or something like that. Didnt really mind it at all since im still getting paid the same amount.
But this has fucked me over more than i realized it would. Got married recently and been trying to get a loan for a house for me and my wife but my loan application got rejected and my agent told me my yearly income was not enough for the loan cause it shows that i only earn the 70% of what i actually make every year.
Just want to know if this is a normal thing to do for japanese companies or is this some kind of fraud which i can report. If yes where can i report this.
10 comments
Did you report your full salary to the tax man? Did you pay taxes on those 30 percent?
If not, maybe you were doing shady shit too. But surely your payslip shows your entire salary?
Might mean that the company doesn’t have the funds to pay it’s employees the usual way, and they are using ‘other means’ to make up the difference. Your company might be about to go tits up. Best to put out some feelers for another job before the company starts not paying the ‘cash’ part.
Your employment income is still the 100% though… unless of course you are not declaring this 30% paid in cash? (Then that would mean you’re also commuting tax fraud)
This seems like an admission of tax fraud by you…
Not only is it gonna be a problem for getting a house loan, I’m pretty sure you’ve underpaid taxes, pension, health insurance etc
Since you said “during” the pandemic, you could possibly be talking 2-2.5 years worth of troubles here
The answer is the most obvious. Shady. Not normal. Red light. You have been duped.
You already have your answer.
> they send 70% of the salary through bank and the other 30% is given in cashlike some kind of monthly bonus
and
> agent told me my yearly income was not enough for the loan cause it shows that i only earn the 70% of what i actually make every year
They’re paying 30% of your salary under the table, which is illegal, and as you have seen, causes problems for you. Mortgage aside, when you’re job hunting if they’re basing your offer against your current salary, you’ll be showing a low figure.
You mention that your deductions for tax and socials has not changed, but your tax records show a 30% drop, so it seems they’re pocketing the difference as well.
Find a new job ASAP – your employer is likely to have serious troubles soon.
Maybe ask them to explain themselves first.
Personally, I would get an accountant quick. Try to reign in any backlash. The taxman doesn’t give a shit why you didn’t pay your tax properly. Only that the rules are followed and the requisite punishment is handed out according to the misbehaviour. It doesn’t matter who’s being shady, it’s your tax and therefore your problem.
Get advice. Now. Not from Reddit.
Lawyer, accountant, Labour board.
You’ve likely underpaid tax so prepare for that. Your company has also probably underpaid on your pension.
This could be a protracted process. Obviously you should have questioned it up in the first instance as it’s not a normal thing for in the slightest for a company to do.
Good luck.