Japanese Attorney at Law - Bengoshi L.L.

Qualified attorney (Japan & NY), CIPP/E & CIPP/US, MCIArb, CFE — guiding Japanese corporate law & compliance.

Home Interrupted: Japanese Supreme Court on Inheritance Tax Relief for Land in Readjustment Projects

Date of Judgment: January 23, 2007 Case Name: Claim for Revocation of Inheritance Tax Reassessment Disposition, etc. (平成17年(行ヒ)第91号) Court: Supreme Court of Japan, Third Petty Bench In a significant decision addressing the application of inheritance tax relief for residential land, the Supreme Court of Japan on January 23,

Land or Cash? Japanese Supreme Court on Inheriting Property Mid-Sale

Date of Judgment: December 5, 1986 Case Name: Claim for Revocation of Inheritance Tax Assessment Disposition (昭和56年(行ツ)第89号) Court: Supreme Court of Japan, Second Petty Bench In a significant decision on December 5, 1986, the Supreme Court of Japan provided crucial clarification on what constitutes "inherited property"

Co-Heirs and Tax Debts: Japanese Supreme Court on Automatic Joint Liability for Inheritance Tax

Date of Judgment: July 1, 1980 Case Name: Claim for Damages, etc. (昭和53年(行ツ)第86号) Court: Supreme Court of Japan, Third Petty Bench In a significant judgment delivered on July 1, 1980, the Supreme Court of Japan clarified the nature and procedural requirements associated with the joint and several liability

Active HQ or Passive Shareholder? Japan's Supreme Court Clarifies CFC Exemption in Denso Case

Date of Judgment: October 24, 2017 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成28年(行ヒ)第224号) Court: Supreme Court of Japan, Third Petty Bench In a landmark decision for Japanese multinational corporations, commonly known as the Denso case, the Supreme Court of Japan on October 24, 2017, provided crucial clarification

Japan's CFC Rules and Tax Treaties: Supreme Court Upholds Parent Company Taxation

Date of Judgment: October 29, 2009 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成20年(行ヒ)第91号) Court: Supreme Court of Japan, First Petty Bench In a landmark decision on October 29, 2009, the Supreme Court of Japan addressed the compatibility of Japan's Controlled Foreign Corporation (CFC) rules—also

Patent Royalties Across Borders: Japanese Supreme Court on Source of Income in Silver Seiko Case

Date of Judgment: June 24, 2004 Case Name: Demand for Cancellation of Collection Notice of Withholding Income Tax, etc. (平成11年(行ヒ)第44号) Court: Supreme Court of Japan, First Petty Bench In a significant decision for international taxation, the Supreme Court of Japan on June 24, 2004, in what is commonly

Refund as Revenue? Japanese Supreme Court on Timing of Income from Corrected Overpayments in the Soei Sangyo Case

Date of Judgment: October 29, 1992 Case Name: Reassessment Disposition, etc. Invalidation Lawsuit (平成3年(行ツ)第171号) Court: Supreme Court of Japan, First Petty Bench In a notable decision on October 29, 1992, the Supreme Court of Japan addressed the complex issue of how a company should account for a refund

Cash in Hand vs. Final Judgment: Japanese Supreme Court on Taxing Disputed Rent Received Provisionally

Date of Judgment: February 24, 1978 Case Name: Income Tax Reassessment Decision, etc. Invalidation Lawsuit (昭和50年(行ツ)第123号) Court: Supreme Court of Japan, Second Petty Bench In a significant ruling on February 24, 1978, the Supreme Court of Japan addressed a complex issue concerning the timing of income recognition for

No Going Back: Japanese Supreme Court Rules on Tax Adjustments for Bankrupt Consumer Lender's Past Income in the Clavis Case

Date of Judgment: July 2, 2020 Case Name: Notice Disposition Cancellation, etc. Request Case (平成31年(行ヒ)第61号) Court: Supreme Court of Japan, First Petty Bench In a significant decision clarifying the principles of income allocation across fiscal years, particularly in the context of bankruptcy, the Supreme Court of Japan on

Timing is Everything: Japanese Supreme Court Rules on Revenue Recognition for Export Sales in the Otake Trading Case

Date of Judgment: November 25, 1993 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成4年(行ツ)第45号) Court: Supreme Court of Japan, First Petty Bench In a foundational decision for Japanese corporate tax law, the Supreme Court on November 25, 1993, in the case commonly known as the Otake Trading case,

Form Over Substance: Japanese Supreme Court Denies Tax Loss Carryover in Yahoo Japan Reorganization Case

Date of Judgment: February 29, 2016 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成27年(行ヒ)第75号) Court: Supreme Court of Japan, First Petty Bench In a landmark decision with significant implications for corporate reorganizations and tax planning in Japan, the Supreme Court on February 29, 2016, addressed the application of

Beyond the Balance Sheet: Japanese Supreme Court Redefines 'Bad Debt Loss' in Landmark Jusen Crisis Case

Date of Judgment: December 24, 2004 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成14年(行ヒ)第147号) Court: Supreme Court of Japan, Second Petty Bench In a highly significant judgment delivered on December 24, 2004, arising from the tumultuous collapse of Japan's jusen (housing loan corporations) in the 1990s,

Dialing in on Depreciation: Japanese Supreme Court Defines 'Asset Unit' for PHS Network Rights in the NTT Docomo Case

Date of Judgment: September 16, 2008 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成18年(行ヒ)第234号) Court: Supreme Court of Japan, Third Petty Bench In a significant decision for corporate taxation, commonly known as the NTT Docomo case, the Supreme Court of Japan on September 16, 2008, clarified the criteria

Deducting Future Costs: Japanese Supreme Court on 'Cost of Sales' and Unfixed Liabilities

Date of Judgment: October 29, 2004 Case Name: Corporate Tax Act Violation Case (平成12年(あ)第1714号) Court: Supreme Court of Japan, Second Petty Bench In a significant judgment on October 29, 2004, the Supreme Court of Japan provided crucial clarification on the deductibility of estimated future expenditures as "cost

No Deduction for Deception: Japanese Supreme Court on Expenses for Tax Evasion Schemes

Date of Decision: September 16, 1994 Case Name: Corporate Tax Act Violation Case (平成元年(あ)第28号) Court: Supreme Court of Japan, Third Petty Bench In a significant criminal case with direct implications for corporate tax law, the Supreme Court of Japan on September 16, 1994, addressed whether payments made by

Beyond Borders and Bargains: Japanese Supreme Court Tackles Value Shifting via Foreign Subsidiaries in the Obunsha Holdings Case

Date of Judgment: January 24, 2006 Case Name: Corporate Tax Reassessment Invalidation Lawsuit (平成16年(行ヒ)第128号) Court: Supreme Court of Japan, Third Petty Bench In a landmark decision dated January 24, 2006, the Supreme Court of Japan delivered a pivotal judgment on the interpretation of "transaction" under Article

Selling Below Market: Japanese Supreme Court Clarifies Corporate Tax on Low-Value Asset Transfers

Date of Judgment: December 19, 1995 Case Name: Reassessment Invalidation Lawsuit (平成6年(行ツ)第75号) Court: Supreme Court of Japan, Third Petty Bench In a significant ruling on December 19, 1995, the Supreme Court of Japan addressed the critical issue of how a corporation's taxable income should be calculated

When Piety Meets Profit: Japanese Supreme Court on Taxing a Religious Corporation's Pet Funeral Business

Date of Judgment: September 12, 2008 Case Name: Corporate Tax Assessment Invalidation Lawsuit (平成18年(行ヒ)第177号) Court: Supreme Court of Japan, Second Petty Bench In a notable decision on September 12, 2008, the Supreme Court of Japan addressed the question of when services provided by a religious corporation cross the

What Defines a "Spouse" for Tax Deductions? A Japanese Supreme Court Ruling on De Facto Marriages

Date of Judgment: September 9, 1997 Case Name: Income Tax Reassessment Invalidation Lawsuit (平成8年(行ツ)第64号) Court: Supreme Court of Japan, Third Petty Bench On September 9, 1997, the Supreme Court of Japan delivered a concise yet impactful judgment concerning the definition of a "spouse" for the purposes

Beyond a Flutter: Japanese Supreme Court Rules on Tax Treatment of Systematic Horse Race Winnings

Date of Judgment: December 15, 2017 Case Name: Income Tax Reassessment Invalidation Lawsuit (平成28年(行ヒ)第303号) Court: Supreme Court of Japan, Second Petty Bench In a significant decision dated December 15, 2017, the Supreme Court of Japan provided crucial clarification on the tax treatment of substantial winnings derived from systematic

Carryover Basis and Donee's Costs: The Japanese Supreme Court on Golf Club Membership Gifts and Acquisition Cost

Case: Supreme Court, Third Petty Bench, Judgment of February 1, 2005 (Heisei 13 (Gyo-Hi) No. 276: Action for Rescission of Income Tax Reassessment Disposition) – Commonly known as the "Golf Club Membership Gift Case" Introduction On February 1, 2005, the Third Petty Bench of the Supreme Court of Japan

Defining Acquisition Cost: The Japanese Supreme Court on Loan Interest for Personal Residences and Capital Gains

Case: Supreme Court, Third Petty Bench, Judgment of July 14, 1992 (Showa 61 (Gyo-Tsu) No. 115: Action for Rescission of Income Tax Reassessment Disposition, etc.) Introduction On July 14, 1992, the Third Petty Bench of the Supreme Court of Japan delivered a significant judgment concerning the calculation of capital gains,

Transfer of Assets or Gratuitous Act? The Japanese Supreme Court on Capital Gains Tax in Divorce Settlements

Case: Supreme Court, Third Petty Bench, Judgment of May 27, 1975 (Showa 47 (Gyo-Tsu) No. 4: Action for Rescission of Income Tax Reassessment Disposition) Introduction On May 27, 1975, the Third Petty Bench of the Supreme Court of Japan delivered a landmark decision concerning the income tax implications of transferring

Defining "Gift" in Capital Gains: The Japanese Supreme Court on Gifts with Assumed Debts

Case: Supreme Court, Third Petty Bench, Judgment of July 19, 1988 (Showa 62 (Gyo-Tsu) No. 142: Action for Rescission of Taxable Disposition) Introduction On July 19, 1988, the Third Petty Bench of the Supreme Court of Japan delivered a significant judgment concerning the definition of "gift" (贈与, zōyo)

Realizing Gains: The Japanese Supreme Court on Capital Gains Taxation and Installment Sales

Case: Supreme Court, Third Petty Bench, Judgment of December 26, 1972 (Showa 41 (Gyo-Tsu) No. 102: Action for Rescission of Reassessment Decision on Income Tax Assessment Amount, etc.) Introduction On December 26, 1972, the Third Petty Bench of the Supreme Court of Japan delivered a significant judgment that solidified a