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Japan plans corporate tax refunds for virus-hit companies

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Tax refunds only help profitable companies. Since you can defer loses upto 7 years a company that was profitable 2 years ago for example but was not in the last 2 would have paid no tax and thus will get no refund. Even a company that had a very bad year 5 years ago and spread the loses over 5 years to break even won't get anything!

13 ( +14 / -1 )

Nice move. Now cut the consumption tax. After all, over 60% of GDP comes from consumer spending, so that move would have an even bigger boost.

4 ( +6 / -2 )

But how will that help the employees?

14 ( +15 / -1 )

But how will that help the employees?

Employees don't and will never matter so far as the spell that has been cast on the sheepie is still effective. All that is needed is to assemble a bunch of yes-men expert by the relevant ministry and send the experts out to spread the narrative of the ministry.

10 ( +12 / -2 )

This is what Abe and his cronies do every time there is some kind of financial crisis. They gave companies tax cuts when they introduced the sales tax increases with 'urges' to pass it on to workers as salary increases. A 'urge' is not even a suggestion or a request. It is nothing! As a result, the minions get nothing!

13 ( +15 / -2 )

Agreed Disillusioned. A lot of companies will simply bank it and start cost cutting to meet now lower demand. Many companies will get rid of all but core staff. Contracted and part time workers will get hit first and this will further lower demand. They should give everyone shopping vouchers with a short expiry date that will get people spending. And significant like 100,000 yen or more.

8 ( +9 / -1 )

Abe and his cronies once again proving they haven’t got a clue.

7 ( +8 / -1 )

Abe quickly rolls out a corporate tax break ...but is still debating a reduction in sales tax and handing out a one off payment to working people..

and errr btw there are still no masks or hand sanitizer in the shops...

as usual Abe is all hot air.....

what a useless pile of cretinous vermin.

6 ( +7 / -1 )

HBJToday 09:15 am JST

Abe and his cronies once again proving they haven’t got a clue.

Even the most myopic are beginning to realise that the New Emperor has no clothes. Instead, Abe is covering his nakedness with money; it's the only thing he knows how to do.

9 ( +10 / -1 )

The execs at these companies will do nothing with the money, but give themselves fat bonuses and lay off workers. Many, I'm sure, were planning retirement this year, but will now stay on because "their expertise is needed at a time of crisis" or some other bs.

10 ( +11 / -1 )

Hand out ¥5,000,000 to all household members. Easy to do. Just print it.

-1 ( +1 / -2 )

Hand out ¥5,000,000 to all household members. Easy to do. Just print it.

¥6.5e+14

0 ( +0 / -0 )

While the stimulus package is needed the government needs to make the virus a greater priority than is does now.

4 ( +5 / -1 )

Once again to support primarily the tourist industry, but does not mean employees would see a single yen coin. The business on the other hand will have an nice fat bonus.

4 ( +5 / -1 )

Fingers crossed, we can use this. We've got clients who are indicating they're going to need to put a hold on their projects, it's getting a little iffy here.

1 ( +1 / -0 )

does not mean employees would see a single yen coin. The business on the other hand will have an nice fat bonus.

Quite the blanket statement. We'll use the money to keep our staff employed, there won't be any fat bonuses for anyone this year, myself included. Right now we're not in maximum profit mode, we're in try to keep all staff as long as possible mode.

0 ( +0 / -0 )

How much you want to bet they’ll “leave it up to the companies” whether or not the bailouts will “require” them to keep or rehire employees. Oh, but families are going to get money, too. Was it ¥4000 a day if they stay home from work, and none if they get fired as a result?

2 ( +2 / -0 )

Come on jiminto I GAVE you the correct answer yesterday!!

Cut income & resident taxes for the PEOPLE

Get rid of consumption tax for the rest of 2020!

Jan 01 2021 assuming we are on the mend, reintroduce the above BUT REMOVE taxes from essemtials

THERE BLOODY DONE now put on your damned NIKEs & DO IT!!!

1 ( +2 / -1 )

Any word whether there is a cap on management and executive salaries for companies receiving these public funds? Will it be like the bailout for US companies, where CEOs pull down multi-million dollar pay packages?

3 ( +3 / -0 )

Just read on another site that, Abe and his cronies are preparing a one-off payment of ¥12,000 for the minions. Yeah, a measly 120 bucks. That's gonna help a lot, NOT! I dunno what people are gonna do tomorrow though. Yes, Japan is a rich country - for 5% of the population. The rest can starve!

4 ( +4 / -0 )

a sales slump itself will not qualify a company for a refund if it stems only from the economic fallout...

So basically nothing for most companies. Compare the offer of ¥12,000 per person, to the UK paying 80% of wages up to GBP2,500/ month for nearly one million people.

I'd expect a lot of small to medium sized businesses to go bust, they have small cash flow reserves - typically just a few months, and with zero income from sales they are unable to pay salaries, overheads and bank loans; and both full-time, and part-timers who make up around half of the workforce, will be unable to pay rent, mortgages, loans, monthly utility bills, etc..

Already I know of a few of these businesses that are kept going by the owners using their savings, but they will not last long; a small company with 5-6 employees and an office/ workshop needs at least ¥1,500,000 month to cover their staff and expenses.

2 ( +2 / -0 )

Corporate tax cuts ...decided in a flash ...meanwhile the LDP daimyos are still deciding whether to postpone ( not waive just postpone ) tax payment for households on welfare by a couple of months and throw sheeple a measly 120 bucks....

If this were France they would be in front of a guilotine by now.

4 ( +4 / -0 )

Even though the paperwork alone would account for more than that, the presupposition of a servile disposition in the masses underpins ¥12,000 as the minimum amount they assume they can get away with offering.

0 ( +0 / -0 )

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