１. Accounting (Source: “Keiei Zaimu Magazine”)
Due to the internationalization of accounting standards, the existing Japanese lease accounting standards will be inevitably exposed to its impact.
However a recent survey by Japan Leasing Association has revealed
that the upcoming related changes in accounting and taxation system will have little effect on lease advantages.
The primal advantage is that a user is given immediate use of equipment with no expensive capital outlay.
The next move of ASBJ* deserves the continued attention for the second advantage, which is “Off-balance sheet treatment”
that operating lease qualifies for.
*ASBJ（Accounting Standards Board of Japan,企業会計基準委員会）
２.Taxation (Source: ” Zeimu Tsushin Magazine”)
１．According to the present transfer pricing rules, a taxpayer is required to apply one of the following calculation methods prior to others
when it determines arm’s length result. And other methods are applicable if neither of them is available.
・Comparable uncontrolled price method
・Resale price method
・Cost plus method
However, the OECD’s Transfer Pricing Guideline published in July recommends a new alternative known as “Best Method Rule” ,
which allows taxpayers the application of the most reliable measure of arm’s length result right from the beginning on a practical level instead of the above three methods.
It is likely that “Best Method Rule” will be adopted in Japan responding to the new guideline.
２. The significant amendments to Japanese anti-tax haven rules under the 2010 Tax Reform are scheduled to
be effective from business years beginning on and after April 1, 2011.
The key amendments are as follows;
– The trigger rate at which income of Controlled Foreign Corporation (CFC) is subject to the anti-tax haven rules would be reduced from 25% to 20%.
– Currently, a CFC is subject to the anti-tax haven rules if its Japanese parent corporations own more than 50% of its share capital.
In this case, CFC’s income is recognized by each of its parent corporation which owns 5% or more of its share capital.
The tax reform proposal would increase the second threshold to 10%.
３. This Week’s Words of Wisdom (Source: English words of wisdom to enrich life”)
There are two kinds of failure: those who thought and never did, and those who did and never thought. (Laurence J. Peter)
This quote reminds me that Japanese people don’t act out their beliefs in information flood era symbolized by
TWITTER, e-mail and, of course, our proud mail magazine.
“Sign boards” to express students’ views were on every corner of campus during our university days,
but nowadays they are only referred in the past tense.
I wonder if this is a side effect of so called” Controlled society”.