Under Japanese law, those accused of wrongdoings can be held without charge for ten days, with an equal period of time being possible as an extension. At the end of that period, formal charges must be made.
Ghosn is currently in the extended detention period, which will expire on December 10, but according to CNBC, citing Japanese publication Sankei, Tokyo prosecutors plan to keep him behind bars by throwing at the former auto executive a fresh claim of understating his income.
As per the initial accusations, Ghosn conspired with Nissan director Greg Kelly to understate his compensation to about half of the $88 million received from 2011 to 2015. As a result, the executive has cheated Japanese authorities of the taxes owed for about $35 million, the source says.
Aside for the problems with authorities, Ghosn is also accused of having cheated the trust of Nissan by having the company pay for personal vacations, buy houses and make donations on his behalf.
At the end of last month, Nissan said it decided to oust the CEO and seek advice on how to proceed next from an independent third party. The company voted on the creation of an advisory committee chaired by Masakazu Toyoda, tasked with looking for the next chairman.
Alliance partner Renault has chosen a more cautious approach and for now has opted to only temporarily replace Ghosn at the company’s helm.
Renault also officially asked Nissan “to provide all information in their possession arising from the internal investigations related to Mr. Ghosn.”