Mt. Koya Temple Lodging Operators Face Tax Audit Over $650K Unreported Income

Osaka Regional Taxation Bureau audits of temple lodging operators on Mt. Koya in western Japan uncovered over 100 million yen ($650,000) in unreported income for fiscal year 2025.

The audits were conducted after a surge in foreign visitors pushed up prices at the lodgings. The bureau audited more than 10 of the roughly 50 operators to examine their commercial operations.

At Sojiin temple, located next to Kongobuji, the head temple of the Koyasan Shingon school of Buddhism, the family of the chief priest used income from the temple lodging for personal expenses. The temple failed to report about 90 million yen in income, with additional taxes and penalties likely to be around 40 million yen.

Mt. Koya is a UNESCO World Heritage site and a major center of the Shingon school of Buddhism. Its temple lodgings are traditionally used by monks and worshippers but now also accommodate tourists, including visitors from overseas.