1. Accounting (Source: “Keieizaimu Magazine”)
The number of delisting companies from January through July in 2009 jumped to 110 at the fastest-ever rate. The yearly record to date is 149 in 2008.
Corporate reorganization is the biggest factor and the breakdown is as follows:
・ Acquisition of wholly-owned subsidiaries 34
・ All-stock acquisitions 29
・ Mergers 8.
Corporate failures have also been on the rise since 2008 and 24 corporate failures have been reported so far in 2009.
2. Taxation (Source: “Zeimutsushin Magazine”)
Under the Foreign Dividend Exclusion (FDE) System newly introduced in 2009, 95 % of dividends from foreign subsidiaries are excluded from taxable income provided that the recipient Japanese company directly owns 25% or more of the shares of the foreign subsidiary for a period of six months or longer.
This new system applies to Japanese parent companies holding 25% or more of either “Issued and outstanding stock” or “Voting stock” of a foreign subsidiary. (Article 1, Paragraph 22-3 of the Corporation Tax Act)
3．This Week’s Words of Wisdom
“A state may be proud of a handful of outstanding people saying that they are the true face of the nation. However, we must look at the level of ordinary people’s life to judge the cultural maturity and reality of a nation” (Souetsu Yanagi)
I have no particular comment to make on this one. I thought this one is excellent.