Wages paid to wives in family-run businesses should be considered as tax-deductible expense: JCP Daimon

Japan Press Weekly

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

Wages paid to wives in family-run businesses should be considered as tax-deductible expense: JCP Daimon

Japanese Communist Party representative Daimon Mikishi on November 17 at a House of Councilors Committee on Financial Affairs meeting demanded that the payment of wages to wives or other family members in family-run small businesses be regarded as a tax-deductible business expense.

Article 56 of the Income Tax Law does not regard wages paid to business owner’s family members as necessary expenses, and therefore are not tax-deductible.

The call for the removal of the Article 56 provision is increasing beyond political boundaries. So far, 130 municipalities across the nation have adopted resolutions calling for the abolition of the article, an increase of 100 municipalities from 30 in March.

“The Article 56 provision should be abolished,” said Daimon.

Vice Financial Minister Minezaki Naoki in reply said, “We will seriously consider what you have proposed.” Finance Minister Fujii Hirohisa also said, “I share the same opinion.”

- Akahata, November 18, 2009