Nagamine & Mishima Accounting Office

Accounting practice since 1989

  • English
  • 日本語 (Japanese)
  • About
    • Message from the Managing Partner
    • Leadership
    • Advantage
  • Services
    • Startup Support
    • Expansion Support
    • Crisis Support
    • Cloud Support
  • Resources
    • Seminars
    • Newsletters
    • Monthly Checklists
    • Japanese Business Guide
  • Blog
  • Clients
  • Contact

27th the Revised Corporate Tax Circular of 2010, “English words of wisdom to enrich life”

August 20, 2010

1. Taxation (Source: “Zeimu Tsushin Magazine”)

Under the Revised Corporate Tax Circular of 2010, due to the abolition of the taxation on liquidation income, if it is determined that a corporation has no remaining assets for each fiscal year during the course of liquidation, its expired unused tax losses are deductible for income tax purposes. (Corporation Tax Act 59-3)

Whether a corporation has no remaining assets is determined at the end of each fiscal year during the course of liquidation. (Corporate Tax Circular 12-3-7)

The case with “no remaining assets” is defined as the corporation has become insolvent. (Corporate Tax Circular 12-3-8)

In addition, the actual balance sheet measured at the disposal value would be an example document explaining that the corporation has no remaining assets. (Corporate Tax Circular 12-3-9)

As a result, for instance, if a corporation with Assets 100 and Liabilities 500 liquidates and obtains a discharge of its debts during the first year of liquidation, it has debts in excess of 400 just before the discharge, but not insolvent at year-end.
In this situation, the utilization of its expired unused tax losses would not be allowed at year-end. Therefore, the timing of debt discharge should be an important issue.

2. Accounting

No topics in this issue for Accounting.

3. This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)

“Work is either fun or drudgery. It depends on your attitude. I like fun.” – Colleen Barret

(Comment)
There are two kinds of people, who enjoy their work or who don’t.
The latter share certain characteristics as follows:

(1) Late for work
(2) Can’t cheerfully say “Good morning!”
(3) Can’t nicely say “Thank you!”
(4) Gloomy
(5) Act high and mighty
(6) Lack of responsibility
(7) Happy on payday only
(8) Worry about salary rather than team, organization or company
(9) Can’t take care of subordinates or train and develop junior co-workers

Such persons don’t have the motivation to make their work more interesting.
On the other hand, what kinds of people enjoy their work?

(1) Try to make a positive effort
(2) Prefer capable workers
(3) Punctual, responsible and keep a promise
(4) Cheerful and willing to help others
(5) Set a vision and goal

These things hold true regardless of the era we live in.

Blog Categories

  • Blog
  • Facts about Tax
  • Newsletter

Need support for your business in Japan?


With over 25 years experience, our team is here to help. Fill out our simple contact form and we will be in touch very shortly.

People are Talking

  • “The launch of Berry Bros. & Rudd Limited’s Japanese branch in November 2008 required the support of a knowledgeable, reliable and professional accounting firm and we were therefore fortunate to find all of these qualities working with the Nagamine & Mishima Accounting Office.

    Since assisting us with the initial set-up, N&M have managed our monthly and year-end Accounts as well as handling our Payroll, ensuring compliance with Tax regulations and filing annual Tax Returns and supervising year-end stock counts.  They respond to all queries in a very timely manner, their work is of a high consistency and their approach friendly.

    With N&M assistance we have confidence in the controls and integrity of the accounting information for our Japanese operations.”

    Philip Duggan, Finance Director

    Berry Bros. & Rudd Limited Japan branch