Japan To Tackle Tax Evasion With Taxpayer Numbering System

by Mary Swire, Tax-news.com, Hong Kong

01 June 2001

It is expected that a Japanese government council on Economic and Fiscal Policy will recommend that the government take steps to curb tax evasion by introducing a numbering system to keep track of the incomes of individual taxpayers in the country.

According to a report in the Japan Times, the council wants to assess taxpayers' tax burdens and their social security benefits to help them come up with a way of monitoring each individual in order to get an accurate understanding of just how much revenue the government is losing out on.

The Tax Commission, which counsels the Prime Minister on all tax-related issues, has suggested that such a system must be considered as a measure to achieve fair taxation. Chairman of the Commission, Hiromitsu Ishi, recently called for a political debate to take place over the advantages and disadvantages of the system and proposed that taxation on interest accruing from bank deposits should be implemented.

Japan Times sources have informed the newspaper that the council will call for the system to be implemented on a medium- to long-term basis in the recommendations of its next policy paper, which is due for release this month. The paper is expected to include a number of other issues including a review of public works spending, social security, central and local government responsibilites and the stimulation of the economy.

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