July 23, 2010

TOEIC subcontractor hid 100 million yen

The Mainichi reports: 'The Tokyo Regional Taxation Bureau has uncovered that International Communications School Inc. (ICS) had hid over 100 million yen in income until the end of fiscal 2008. ICS is a subcontractor for the Institute for International Business Communication (IIBC), which operates TOEIC, or Test of English for International Communication, in Japan. Tax authorities have apparently ordered ICS to pay about 30 million yen in back taxes.'

According to sources close to the case, ICS subcontracted works related to TOEIC, including conducting the exam and promoting its widespread use among schools and companies. Tax authorities have apparently exposed crooked accounting over the subcontracted work.

James McCrostie wrote an illuminating article on TOEIC in Japan for JALT in February this year which is well worth reading for background on the current problems with ICS. He made four main criticisms - 1) the profit-oriented motives for starting the test, 2) nepotistic executive appointments, 3) questionable partnerships with companies such as International Communications Inc. and International Communications School whose services have cost hundreds of millions of yen, and 4) the misuse of test-taker fees for expenses including staggering executive salaries and funding the former chair's pet projects such as a Chinese poetry association and the Beautiful Aging Association.

Click here for James McCrostie's article.Click here for the full Mainichi article.

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