2009 November 18 - 24 [
ECONOMY]
Wages paid to wives in family-run businesses be tax-deductible expense
|
November 18, 2009
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
