Popular News From Popular Sites: In corporate tax reform, Abenomics giveth, and taketh away

Sunday, June 29, 2014

In corporate tax reform, Abenomics giveth, and taketh away

Japan's Prime Minister Shinzo Abe speaks next to teleprompters during a news conference at his official residence in Tokyo By Tetsushi Kajimoto and Shinichi Saoshiro TOKYO (Reuters) - For corporate Japan, burdened by one of the industrialized world's steepest tax rates, a tax cut at the center of Prime Minister Shinzo Abe's latest growth strategy will end up giving with one hand - and taking back with the other. While the headline tax rate will fall, Tokyo, under pressure to shore up its finances with a public debt twice its annual GDP, is seeking to offset the tax cut by scaling back exemptions and deductions favoring small and loss-making companies. "Corporate tax cuts and broadening the tax base would make Japan's taxation fairer and more stable, even though it would impose a burden on unprofitable companies that are not paying corporate tax, many of which are small and unlisted," said Hiroshi Watanabe, senior economist at SMBC Nikko Securities.




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