Press translations [Japan]. Economic Series 0205, 1946-01-26.

Summary:

Those corporations which are to pay the Corporation War Profit Tax are requested to report the amount of war profit to the Government within 30 days after the property investigation. At the same time, these corporations are required to submit a list of properties, a balance sheet, and a report of revenue and expenditure during the calculation period.

In case such reports are not submitted or are found to be incorrect, the Government will conduct the appraisal itself. Though the appraisal regarding corporation tax is subject to the approval of the Corporation Property Appraisal Committee, the corporation war profit tax is exempted from such procedure.

When the Government has decided the amount of the war profit, it will notify the individual corporation of the amount. In case a corporation does not agree with the Government's appraisal, they may request the Government to conduct another investigation within 30 days after they receive notification. When such a request is made, the Government, in accordance with a resolution of the Property Appraisal Commission as provided in the Property Tax Law, will decide the amount. When corporations do not agree with the allotted amount, they may file a protest against the minister of finance.

The collection of the corporation war profit tax is made once. The payment should be done in cash or in bonds, but payment in kind and postponement of tax payment is permitted in special cases, as in the case of the corporation property tax. The end of the period of deferred payment is understood, to be set at the last day of August 1947.

In case liquidated corporations have distributed their properties, without paying the assigned war profit tax both liquidators and those who have received such distribution are liable to assume joint responsibility for the payment of the tax. For attempts to evade the corporation war profit tax, a heavy penalty will be applied.

The following is an example which shows how to calculate the war profit tax and the corporation property tax:

There is a corporation whose paidup capitalization at the beginning was 10 million yen and whose reserve fund was three million yen. Its total profit is set at 30 million yen, and debts at 20 million yen, registering a net profit of 10 million yen. The corporation tax, which this corporation has paid or has to pay during the calculation period, is 3,550,000 yen; dividends and bonuses amount to 4,200,000 yen and 250,000 yen respectively. The company's corporation tax and extraordinary profits tax are also to be treated as profit. The amount of the paidup capital at the time of the end of the period is set at 10 million yen; that of the reserve fund, five

ECONOMIC SERIES: 205 (Continued)

ITEM 1 (Continued)

million yen; the estimated value of all properties at 80 million yen; and the total of debts in territories other than JAPAN at 60 million yen.

The balance obtained by subtracting debts from total profits during the calculation period is 10 million yen, which is to be regarded as profit gained during the war. Since the corporation tax and extraordinary profit taxes of this corporation are not calculated among debt, it is not necessary to calculate these tax figures. Since the corporation war profit tax rate is 100 per cent, the taxable amount of this corporation is 10 million yen. However, as 4,200,000 yen of dividends and 250,000 yen of bonuses are deducted from 3,550,000 yen of the corporation tax and the extraordinary profit tax, the remainder, amounting to two million yen, is the tax to be paid by the corporation as war profit tax. This figure, coincidentally agrees with the increased amount of reserve funds between the date at the beginning and the end of the period.

In calculating the property tax of this corporation, deduct 60 million yen of debts in foreign territories and 10 million yen of the paidup capital from 80 million yen of the total estimated properties. The remainder will be 20 million yen. Deduct two million yen of the war profits tax from 20 million yen, and 18 million yen will be left, which will be the net taxable amount. This amount will be divided into the equivalent amount of the reserve fund and others subject to different taxation rates. The reserve fund of this corporation in this case is three million yen, which is the remainder of the five million yen of the reserve fund at the closing period after the deduction of two million yen of the war profit tax. For this three million yen, 20 per cent tax will be levied, while for the amount of 15 million yen, the 30 per cent tax rate will be levied, which is 5,100,000 yen. Thus the war profit tax and the property tax of this corporation are two million yen and five million yen respectively.

The Corporation war profit tax law will take effect on and after the date of the promulgation of the Law.

Full Translation:

Agriculture and Forestry Minister SOEJIMA discussed his views on the current food situation over the radio yesterday. He hinted in his talk that a raise in the price of rice and Government monopoly in production of fertilizer was contemplated.

A summary of his talk follows:

"Some farmers are willing to deliver their rice only after a price increase, because rice is too cheap in comparison with other commodities. The Government is studying the price of rice in relation to other commodities. The Government promises that when rice is raised in price payment will be made retroactively for rice already delivered.

Fertilizer, farming implements, and salt, etc. will definitely be awarded in return for rice deliveries.

The Agriculture and Forestry Ministry is now establishing a definite policy for rice delivery. The eventual conclusion will be reached with advice given by experts.

There must be a greater supply of fertilizer reserved for a better harvest per acre. Seeing that there is a scarcity of raw materials and fuel for fertilizer production, some kinds of fertilizers must be brought under Governmental monopoly or management.

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ECONOMIC SERIES: 205 (Continued)

Full Translation:

The Agriculture and Forestry Ministry decided to increase the price of fertilizer ten fold inasmuch as the price has been too low in comparison with rice. The increase in price will be announced by the official gazette and is to be retroactive as of 1 January 1946.

Full Translation:

The JAPAN Broadcasting Association Employees Union (NIPPON HOSOKYOKAI JIGYOIN KUMIAI) requested the appointment of a new president who is not a man responsible for the war but a moderate. They also demand a raise of three times their monthly salary and non-interference by the Government.

Full Translation:

The Metropolitan Office Staff Union (TOKYO TO SHOKU IN KUMIAI) requested a raise of three times present union members monthly salary and payment of allowances for this winter.

Summary:

Nearly 400 aircraft plants, military and naval arsenals and war material laboratories and war material laboratories were taken into Allied custody by SCAP's directives of 22 January. The directive was issued in order to halt the removal of installations which were listed by name. Any permit which has been previously granted to any of the installations for reconversion to peacetime production was cancelled.

A considerable number of the aircraft plants listed have already arranged for reconversion under the guidence of the Ministry of Commerce and Industry or local governments. According to the survey of the Ministry of Commerce and Industry at the end of last December, out of 143 aircraft plants under direct supervision of the Ministry of Commerce and Industry, 20 plants obtained permits and 32 plants were seeking them.

A considerable number of aircraft plants under the supervision of the local governments have already converted to peacetime industry with the approval of the Eighth or the Sixth Army. For example, 32 plants of the FUJI Industry Company (FUJI SANGYO KAISHA) formerly named the NAKAJIMA Airplane Company (NAKAJIMA HIKOKI KAISHA) have already converted to civilian goods' production covering textiles, automobile bodies and parts, railway vehicles and their parts, auto-tricycles, watches, agricultural implements, sewing machines, toys and other household utensils.

Some of eighty military and naval arsenals have been contemplating reconversion to production of explosives essential for coal production, ammonium sulphate, rolling stock, and other civilian goods.

It is evident that the directives denying all reconversions will greatly affect the production of civilian goods. The Ministry of Commerce and Industry as well as the local government authorities are now forced to make a fundamental revision in their industrial administration.

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