tax

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Large corporations save 929 billion yen in 3-year period using consolidated corporate tax returns

With the introduction of a consolidated tax return system in 2002, large corporations were given 929.5 billion yen in tax cuts between 2002 and 2004. This has been revealed by Japanese Communist Party House of Representatives member Sasaki Kensho.

The consolidated tax return system allows a corporate group to compute a single corporate tax by summing up profits and losses of group companies and thereby minimizing the amount of tax. Using consolidated corporate tax returns, a corporate group pays only 20 percent of the amount of tax each member company used to pay.

In September 2002, there were 164 consolidated tax returns. In September 2004, the number increased to 686.

Sasaki commented on the findings as follows: "331 corporate groups in FY 2004 enjoyed the benefit of tax cuts amounting to 319.6 billion yen from consolidated tax returns. Large corporations bought this tax cut with their political donations. Large corporations making big profits should shoulder appropriate tax burdens."

Sasaki also pointed out that the Koizumi Cabinet has already imposed a tax increase of 3.5 trillion yen on the public and has more tax increases planned, including abolition of various deductions from taxable incomes and a consumption tax increase. -- Akahata, November 8, 2005