Travel agency JTB to cut capital to become eligible for tax advantage

Governments really do have a special knack for making things worse.

This is pure tax evasion and that is a criminal offence.

with all the money received from government, other money funnelled through support campaigns to them, with their near monopoly on government travel, including local governments , they still can not make money. Also they had near exclusivity on the rugby worldcup through a JV with Dentsu and with STH.

this has been one of the last surviving dinosaurs and time to euthanise it.

Yet another example of government policy having knock-on unintended consequences to economic behavior.

Week after week there are such stories, pretty much any news story you read on JT that mentions government, is a story of government being the origin of the problem.

We’d be better off if we kept government out of our lives and have it quit its attempts to micro manage economic activity.

What's going to happen when their capital goes back up to over 20 million dollars after the epidemic, which it inevitably will? Do they get to still be considered a medium/small sized company?

It seems completely wrong that a company of this size can be allowed to reduce its capital base (money on the line) from around $23 million to a paltry $1 million. Perhaps they’re setting themselves up for bankruptcy, in which case you would expect to see its share price going through the floor.

Can companies really just declare how much their capital is? A company like JTB with a trillion in sales can just say they're a small company? And the government doesn't care? Will Toyota be small soon, too?

JTB posted a record net loss of 78.17 billion yen for the April-September period and will reduce its global workforce by 6,500 under broad restructuring.

Although JTB is unlisted, it is a large corporation with sales of 1 trillion yen and more than 20,000 group employees.

After being the recipient of generous GoTo subsidies from the struggling Japanese taxpayer that were supposed to be so people could retain jobs in the sector; we are going to squirrel away that capital in a tax evasion scheme, downsize, and set ourselves up for even more largesse downloaded into the executive and shareholder trough.