How a Tokyo studio rose from tax evasion to global box office dominance
In short: Founded in 2000, Ufotable has become a powerhouse of Japanese animation. While their high-budget adaptations for Type-Moon and Bandai Namco have shattered global records, the studio's journey was nearly derailed by a massive financial scandal involving its founder and president.
Ufotable, Inc., based in Shinjuku, Tokyo, was established in October 2000 by Hikaru Kondō, a former producer at Telecom Animation Film. The studio built a reputation through high-profile adaptations of Type-Moon works, including Fate/Zero and The Garden of Sinners, as well as producing content for Bandai Namco Entertainment's Tales and God Eater series. Their visual style is often noted for unique elements, such as claymation sequences seen in works like Ninja Nonsense.
However, the studio's prestige was shadowed by a significant legal crisis involving tax evasion. In 2019, investigations began into the studio's offices, eventually revealing that Ufotable owed ¥400 million in taxes. Authorities charged the studio and Kondō in June 2020 for breaching the Consumption Tax Act and Corporation Tax Act after they neglected to pay ¥139 million, approximately US$1.28 million. Kondō later admitted to evading approximately ¥138 million during a 2021 preliminary hearing.
The legal proceedings revealed a desperate financial motivation; Kondō claimed he sought to secure cash to cover staff salaries and production costs if merchandise and cafe revenues failed. Despite prosecutors seeking a 20-month prison sentence, the court delivered a verdict on December 10, 2021, sentencing Kondō to 20 months in prison with the sentence suspended for three years. Since these troubles, the studio has achieved unprecedented success, with the 2025 film Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle becoming the highest-grossing anime film of all time.
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Sources
- Summary by Intellect · source: Ufotable
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