Review of the system to prevent corporate tax payments December 10 20:00
The government has revised the tax system next year to prevent companies that are actually making significant profits from accounting for deficits for tax purposes and avoiding tax payments by using stock transactions with subsidiaries. I compiled a plan to review. If a certain dividend is received from a subsidiary, the valuation of the subsidiary's shares will be reduced.
With regard to the corporate tax paid by corporations, corporations that have made a large profit for the settlement of accounts are in the red for tax purposes in the form of huge losses due to dividends and transfers of shares with overseas subsidiaries. There was a case that the company tax was not paid and domestic corporate tax was not paid.
In order to prevent such tax payment avoidance, the government proposed a plan to review the system at the tax examination committees of the Liberal and Komeito parties.
According to this, if a company receives a dividend of more than 10% of the price when the company acquired shares in one year from a subsidiary holding more than 50% of the stock, the taxable amount of the dividend will be exempted. Decrease the share by lowering the share.
In this way, after paying dividends, by transferring the shares of a subsidiary whose value has declined, the act of avoiding tax payments that would cause huge losses will not be possible.
The government's ruling party will include this proposal in the tax reform outline for next year, which will be compiled on the 12th, and will encourage companies to pay taxes according to the actual situation.