Sources said multiple religious corporations at Koyasan in Wakayama Prefecture underreported income earned from revenue-generating businesses such as temple lodgings during last fiscal year.

Tax authorities found about 100 million yen in unreported income and imposed about 60 million yen in additional taxes.

In one case, authorities found that family members of the chief priest at Soujiin temple used income earned from temple lodging for personal purposes.

Religious corporations are exempt from taxation on income related to religious activities, but profit-making operations including temple stays are subject to taxation.

The number of foreign tourists visiting Koyasan, a mountain that is part of a UNESCO World Heritage site, has surged in recent years, driving accommodation prices higher.