To review the system to prevent tax payment avoidance for government and private companies October 18th 4:17
In preparation for the tax reform next year, the government and the Liberal Democratic Party are not paying corporate tax due to the fact that companies that are making a lot of profits make a deficit for tax purposes by using stock transactions with subsidiaries, etc. Because there were cases, we decided to review the system.
With regard to corporate tax paid by corporations, corporations that have made significant profits in the financial statements have taken the form of huge losses resulting from dividends and transfers of shares with overseas subsidiaries. In some cases, the company recorded a deficit and did not pay corporate tax in Japan.
For this reason, the government and the Liberal Democratic Party decided to review the system to prevent the act of avoiding tax payments and allow companies to pay taxes according to the actual situation.
Specifically, it is expected that discussions will be held on how to evaluate shares when transferring the shares of subsidiaries within the group, and whether to review not only overseas subsidiaries but also domestic subsidiaries.
The government and the Liberal Democratic Party are considering a specific tax system at the tax investigation committee, which will start full-scale from the end of next month, and want to include it in the tax reform outline for the next year, which will be compiled in mid-December.