{"id":53182,"date":"2024-11-26T08:00:48","date_gmt":"2024-11-25T23:00:48","guid":{"rendered":"https:\/\/norimen.net\/wordpress\/?p=53182"},"modified":"2026-05-17T14:59:02","modified_gmt":"2026-05-17T05:59:02","slug":"big-company-embezzlement-part-2","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/big-company-embezzle-sub-2\/","title":{"rendered":"The Relationship Between Embezzlement at a Major Company and Its Subcontractors (Part 2)"},"content":{"rendered":"<p>Hello, everyone.<\/p>\n<p>This is Enta.<\/p>\n<p><a title=\"The Relationship Between Embezzlement at a Major Company and Its Subcontractors (Part 1)\" href=\"https:\/\/norimen.net\/en\/big-company-embezzlement-sub-1\/\" target=\"_blank\" rel=\"noopener\">The Relationship Between Embezzlement at a Major Company and Its Subcontractors (Part 1)<\/a><\/p>\n<p><span style=\"font-size: 150%;\"><strong><span style=\"color: #ff0000;\">This time, I'll talk about how to embezzle from your own company lol<\/span><\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-53170\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f-1.jpg\" alt=\"Embezzlement\" width=\"600\" height=\"305\" srcset=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f-1.jpg 600w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f-1-300x153.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>Does anyone here know anyone who\u2019s embezzling from their company?<\/p>\n<p>You know that, right?<\/p>\n<p>Especially the major companies.<\/p>\n<p>I suppose there are some cases like that when it comes to major local companies or local general contractors, though.<\/p>\n<p>&nbsp;<\/p>\n<p>So, how exactly is embezzlement carried out?<\/p>\n<p>There are various forms of embezzlement, ranging from minor cases to large-scale ones, but ultimately, it is a crime, so please be careful.<\/p>\n<p>The reason I know this is that anyone at this level would think of it.<\/p>\n<p>It would be easy for any ordinary construction manager.<\/p>\n<p>Of course, this kind of tactic...<span style=\"font-size: 120%;\"><strong><span style=\"color: #ff0000;\">The tax office keeps a close eye on things<\/span><\/strong><\/span>and,<\/p>\n<p>In cases such as tax audits, we will naturally focus our scrutiny on those areas without fail!<\/p>\n<hr \/>\n<p>If you know this, you can take steps to deal with it.<\/p>\n<p>However, there are cases where it is impossible to take countermeasures.<\/p>\n<p>I'll also list the pros and cons.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-53183\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/7d1ec859a7977a06f1034a5516cb8274.jpg\" alt=\"Embezzlement Involving Outsourcing\" width=\"600\" height=\"338\" srcset=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/7d1ec859a7977a06f1034a5516cb8274.jpg 600w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/7d1ec859a7977a06f1034a5516cb8274-300x169.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>Embezzlement Involving Subcontractors<\/p>\n<p>&nbsp;<\/p>\n<p>1. Inflating the reported amount of work completed to receive money from subcontractors<\/p>\n<p>Benefits for Embezzlers: They obtain money and other assets<\/p>\n<p>Demerit for Embezzlers: Crime<\/p>\n<p>Benefits of Outsourcing: The company\u2019s output increases and profits rise (output exceeds the amount paid out)<\/p>\n<p>The Downside of Outsourcing: It Can\u2019t Be Counted as a Company Expense, So It Comes Out of the CEO\u2019s Pocket<\/p>\n<p>Measures: Verify construction progress, daily construction photos, and attendance, etc.<\/p>\n<p>&nbsp;<\/p>\n<p>2. Increase the unit price of temporary rental equipment used in construction and arrange for the delivery and receipt of the items from the rental company<\/p>\n<p>Benefits for Embezzlers: You can get your hands on golf equipment, air purifiers, and other items<\/p>\n<p>Demerit for Embezzlers: Crime<\/p>\n<p>Benefits of outsourcing: It increases the company\u2019s revenue and profits, and the goods can be recorded as expenses.<\/p>\n<p>Disadvantages of outsourcing: Depending on the amount (200,000 or more), you must depreciate the assets annually, even if they are not actually present. (This appears on the financial statements.)<\/p>\n<p>Countermeasures: Regularly seek feedback from others and verify the reasons for unit price changes, etc.<\/p>\n<p>&nbsp;<\/p>\n<p>3. Passing on receipts for entertainment expenses paid to the general contractor to the subcontractor.<\/p>\n<p>The benefits for embezzlers: They can treat others to meals and drinks without worrying about the cost.<\/p>\n<p>Demerit for Embezzlers: Crime<\/p>\n<p>Benefits of Outsourcing: Receipts can be claimed as business expenses, and there\u2019s a sense that you\u2019ll continue to receive work<\/p>\n<p>The Downside of Outsourcing: Entertainment and Hospitality Expenses Disproportionate to the Company\u2019s Size (A Cause for Concern for the Tax Authority)<\/p>\n<p>Countermeasures: Subcontractors\u2019 work volume, evidence of inflated construction costs, and reconnaissance of the general contractor?<\/p>\n<p>&nbsp;<\/p>\n<p>4. Demanding money in exchange for a construction contract<\/p>\n<p>Benefits for Embezzlers: They obtain money and other assets<\/p>\n<p>Demerit for Embezzlers: Crime<\/p>\n<p>Advantages of outsourcing: You receive payment for the construction work in a form that provides a certain level of compensation.<\/p>\n<p>The downside of outsourcing: Since the costs can\u2019t be recorded as expenses, they come out of the CEO\u2019s own pocket.<\/p>\n<p>Solution: It's difficult when it's phone-to-phone. I think this is the worst kind.<\/p>\n<p>&nbsp;<\/p>\n<p>5. Forging receipts and passing them on to subcontractors (this applies to our own company as well)<\/p>\n<p>Benefits for Embezzlers: They receive more money or other assets than they paid for<\/p>\n<p>Demerit for Embezzlers: Crime<\/p>\n<p>Benefits of Outsourcing: Expenses Can Be Deducted<\/p>\n<p>The Downsides of Outsourcing: You Might Be Unwittingly Drawn Into a Crime<\/p>\n<p>Action: Verify the T number; check with the store that issued the receipt; confirm whether a revenue stamp and seal are present<\/p>\n<hr \/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-53167\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f.jpg\" alt=\"Embezzlement\" width=\"392\" height=\"392\" srcset=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f.jpg 225w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f-150x150.jpg 150w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/50c70c88613c7e62cbee295da904a11f-100x100.jpg 100w\" sizes=\"auto, (max-width: 392px) 100vw, 392px\" \/><\/p>\n<p>It's pretty much the same thing over and over again.<\/p>\n<p>&nbsp;<\/p>\n<p>And the people who can do this are those in positions of authority.<\/p>\n<p>I think most of them have the authority to approve financial decisions.<\/p>\n<p>As for those with malicious intent, the other day...<\/p>\n<p class=\"title-article c-article-title\"><a title=\"Former Construction Company Department Head Charged with Breach of Trust; Losses Total 130 Million Yen\u2026 Funds May Have Been Used for Online Games\" href=\"https:\/\/www.yomiuri.co.jp\/national\/20241120-OYT1T50073\/\" target=\"_blank\" rel=\"noopener\">Former Construction Company Department Head Charged with Breach of Trust; Losses Total 130 Million Yen\u2026 Funds May Have Been Used for Online Games<\/a><\/p>\n<p>Just like a certain company, they keep spending outrageous amounts of money year after year.<\/p>\n<p>Anyway, that's it for now lol<\/p>\n<p>&nbsp;<\/p>\n<p>Next time, I\u2019m going to write about why people embezzle\u2014and whether \u201cIsn\u2019t this a good idea?\u201d might be a factor.<\/p>\n<p>&nbsp;<\/p>\n<p>See you later.<\/p>","protected":false},"excerpt":{"rendered":"<p>Hello, everyone. This is Enta. The Relationship Between Embezzlement at Major Companies and Subcontracting Construction Firms (Part 1) This time, I\u2019ll be talking about how embezzlement works, lol. Do any of you know someone who\u2019s embezzling at their company? You know who I\u2019m talking about, right? Especially those at major companies. Well, if it\u2019s a major local company or a local general contractor, it might happen to some extent\u2026<\/p>","protected":false},"author":2,"featured_media":53171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[5403,5440,6484,6485,6486,6491,6492],"class_list":["post-53182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-5403","tag-5440","tag-6484","tag-6485","tag-6486","tag-6491","tag-6492"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.3) - 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