 Large corporations get 610 billion yen in tax breaks Japanese Communist Party House of Representatives member Sasaki Kensho revealed that large corporations received 610 billion yen in tax breaks in fiscal 2002 and 2003 thanks to the introduction of a consolidated taxation system. Akahata of April 25 reported that Sasaki found that the consolidated taxation system has allowed big business groups to combine the profits and losses of corporations in the groups, minimize the taxable income and the corporate tax. The system was introduced in 2002 at the strong urging of business circles, . In FY 2003, 239 corporate groups applied for tax breaks under this system. The total amount of tax breaks in 2003 was 341 billion yen, or 1.4 billion yen per group. Sasaki commented: "The Koizumi Cabinet has given tax breaks of 340 billion yen a year to 239 corporate groups while increasing the income tax on pension benefits to collect 240 billion yen from 5 million elderly people. This way of collecting taxes is unjust. It is also unjustifiable for the government to accept corporate donations and give large corporations the tax breaks they want." (Akahata April 25, 2005) |