A man who heads two general incorporated associations in Yamanashi Prefecture that operate rehabilitation facilities for people recovering from addiction improperly diverted about ¥110 million ($696,000) in organizational funds for personal use, sources familiar with the matter said Friday.

The Tokyo Regional Taxation Bureau determined that the two organizations had failed to withhold income tax on the payments.

They were ordered to pay approximately ¥47 million in additional taxes, including penalties for aggravated tax evasion, over a seven-year period through 2025.

The organizations cited were the Yamanashi Drug Addiction Rehabilitation Center’s (DARC) headquarters, based in Kofu in the prefecture, and Grace Lord, a facility for gambling addicts, also based in the city.

Both operate residential facilities that support people recovering from addiction.…