Japan arrests Israelis found with US$17 million of gold from Hong Kong
- Record bust comes amid warnings yakuza gangs have turned their attention to gold smuggling
- Tax change has made gold more expensive in Japan than in nearby markets such as Hong Kong
Reuben Rosen, a 58-year-old Israeli living in Tokyo’s Shinjuku Ward, and David Cohen, 55, of Setagaya Ward, are accused of hiding gold ingots in consignments of vehicle parts flown to Narita International Airport.
Japanese authorities found 220kg of gold concealed in components for car suspension systems that arrived at the airport in November 2017. The gold had a value of ¥1.9 billion (US$17 million or HK$136 million) and the bust is thought to be the largest of its kind in Japan.
Customs officials told the Asahi newspaper that the men were suspected of evading ¥73.9 million in taxes that would have been levied on the gold had it been declared.
The arrests come amid warnings that Japan’s notorious “yakuza” gangs are increasingly employing foreigners with legitimate business operations to smuggle gold into the country.
The Japanese government increased the national consumption tax from 5 per cent to 8 per cent in 2014, making gold significantly more expensive than in other markets – such as Hong Kong – where it is not subject to tax. This has given rise to a number of cases in which people have attempted to smuggle gold into Japan, with some involving fishing boats transferring boxes of gold at sea and female tourists from South Korea arriving in Japan with small ingots sewn into their underwear.
