Press translations [Japan]. Economic Series 0173, 1946-01-17.

Summary:

Corporation Property Tax (ZAISAN ZAI)

A Corporation Property Tax is to be levied on all properties of corporations appraised at the time of the property value examination. In such cases, however, debts of the corporation and paid-up debentures will be deducted from the calculation of properties for taxation.

When any corporation, prior to the property value examination, donates a certain amount of money to some organization, such donation will be disregarded in taxation. The tax will be levied on the corporation as of its status prior to such action. The organization which received such a donation from any corporation, is to assume a joint responsibility for the payment of the assigned tax, in accordance with the percentage which the received amount occupies in the whole property of the organization. This provision is designed to prevent the corporations from evading taxes.

The corporation tax (HOJINZAI) has not been levied so far upon public welfare organizations established by prefectures, municipalities, towns, or villages. However, even such organizations will not be exempted from the new property tax when their structures are changed by funds donated by individuals or other corporations during a specific period prior to the investigation.

Properties of schools, libraries, hospitals, and similar public institutions, or properties of religious institutions or religious propaganda designated by the Government are to be exempt from taxation. It is, however, still undecided as to what kind of properties owned by such organizations or institutions are to be regarded as taxable properties.

Public welfare or public institutions whose properties are valued at less than 30,000 yen are exempt from taxation. In the case of corporations paying the corporation tax, the rate of taxation will be 20 per cent of the reserve funds, and 30 per cent on other properties. In the case of corporations paying the special corporation tax, the rate is 15 per cent on reserve funds and 25 per cent on other properties. Corporations not coming under the above two categories are to pay ten per cent on their properties. The reserve funds of those corporations which pay the war profits tax are subject to deduction of the amount of war profits tax, in the appraisal of taxable value.

Properties held in trust under the common trust funds of trust corporations or banks which conduct trustee business, will be calculated separately from their own properties. A 20 per cent tax rate will be applied on such properties of common trust funds.

ECONOMIC SERIES: 173 (Continued)

ITEM 1 (Continued)

Properties held in trust other than common trust funds will not be regarded as belonging to trustee corporations, but will be treated as those owned by individual trustees. It is also provided that life insurance and reserve funds for dividends will be regarded as properties belonging to life insurance corporations, though they do not really belong to such corporations, since it is difficult to ascertain the individual amount of dividend reserve funds. On such funds a 20 per cent tax will be levied.

Appraisal of Properties

The appraisal of properties will be the most vital factor in enforcing the property tax and this is especially true at the present time when prices of commodities are so diversified. Rice is being sold at 80 sen per sho at one place, while it is sold at 50 yen in others.

In this connection, it has been decided that fundamental policies will be regulated in provisions or laws, and other subsidiary regulations will be added in supplementary provisions. Besides, a Property Appraisal Commission will be established in TOKYO, to conduct the fundamental program in connection with taxable property appraisal. Real estate Appraisal Commissions will also be established in every financial bureau district to conduct the appraisal of real estate. Individual property appraisal committees and corporation property appraisal committees in every revenue office district are also under consideration to help make the project a success.

The appraisal of properties is based in principle, on the market value on the day of examination. The value of land and buildings will be ascertained by multiplying the rental value by a certain figure which will be decided by the Government. Such a system is understood to have originated in former Finance Minister BABA's plan, and it is rational and easy to conduct. Consideration will be given to the appraisal of the value of farm land, in order to avoid any great difference between the value of farmland by tax appraisal and its value in the farmland reform prices. In conducting appraisal for such properties, it is advisable for the ministries concerned to co-operate among themselves.

The appraisal of war-devastated lands is also a difficult task, but it is understood that most adequate measures will be taken after the present conditions and future development programs are taken into consideration.

National bonds, debentures, and shares which fluctuate will be appraised on the average value during a certain period prior to the examination. For those bonds or shares which stock exchange transactions have been suspended, the appraisal will be conducted in proportion to the properties, revenue and other conditions of competent corporations.

It is, however, almost impossible to appraise the value of stocks of corporations in foreign territories, until the concrete program of reparations and government compensation policies for such assets in former Japanese territories have been decided upon.

For such properties, it is understood that a temporary appraisal will be conducted on a certain specific basis, until the real situation has been made clear, when new measures to meet the situation will be taken.

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ECONOMIC SERIES: 173 (Continued)

Full Translation:

The high prices caused by the abolition of price control has made it very difficult for many housewives to obtain fish and vegetables. In some cases it has lead them so far as to make a show of their wealth by the purchase of large amounts of these side-dishes. In order to do away with these tendencies the city authorities have decided now to replace the unit of the neighborers' association, hitherto referred to for the distribution of perishables, et cetera by that of the individual householder. Actual distribution under the new system will begin in the first ten days of February 1946, when the authorities will complete the preparation for the ration cards, et cetera, Also, bargain sales, hitherto open only to those who were [illegible]members of a household, will henceforth be open to everyone. About one-third of the goods are offered at bargain sales, 20 to 60 per cent of their price being borne by the authorities.

Rico and [illegible]are also to be differently, that is, in the same way as perishables, et cetera. They will be handed over to each householder at his home.

Eleven kilotons of mackerel and cuttlefish arrived at the central metropolitan wholesale market (TO CHUO OROSHIURI SHIJO) from ITO on the 13th, 4.5 kilotons of cuttlefish from AJIRO and whale meat from SHIOGAMA arrived on the 14th. Prices on the first day were cuttlefish, 17.20 yen, mackerel, 23.25 yen. These were somewhat dearer than the agreed standard prices but lower by 60 per cent than the agreed prices of the previous day. Prices on the second day were cuttlefish, 16.10 yen; whale meat, 21 yen. These were lower by 0.40 yen and 1.00 yen respectively than the agreed standard prices.

Total arrivals were 34 metric tons on the 13th. The fact that less than 50 metric tons of fish arrived during these two days might be thought to be due to the link system, cutting down the amount of non-link system fish, but in actual fact there was a decrease in the quantity of both types of fish brought to the market.

Vegetables brought to the vegetable section of the Central Metropolitan Wholesale Market (TO CHUO OROSHIURI SHIJO, SEIKABU) on the l4th, two days after the standard price system was setup, amounted to 55,000 kamme. This was a ten per cent increase over the previous day. The amount was normal and the market rather high.

DISTRIBUTION: "X"

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