The Kyoto Animation building which was torched by arson attack in July Photo: REUTERS file

Gov't considers tax breaks for donations to Kyoto Animation


The government is considering providing tax breaks for donations to Kyoto Animation Co, hit by a deadly arson attack last month, to encourage companies and individuals to help rebuild the animation firm, government sources said Thursday.

The state is planning to allow donations to the Kyoto-based animation producer to be fully treated as deductible expenses by having them delivered through local governments, they said.

It is unusual for the government to consider giving preferential tax treatment to support a specific company. The initiative was proposed by a group of lawmakers late last month and Chief Cabinet Secretary Yoshihide Suga pledged to deal with the issue after receiving their suggestions.

When companies make donations to a specific firm, there is a limit on the size of deductible expenses that are calculated based on such factors as donors' capital stock and income. The condition is believed to have curbed corporate financial support.

Financial aid to a specific company by individuals is not eligible for tax breaks. Meanwhile, all donations either from companies or individuals to local municipalities can be treated as deductible expenses.

The Economy, Trade and Industry Ministry, the Finance Ministry and the National Tax Agency will work out details of the scheme on tax breaks for Kyoto Animation-bound donations, the sources said.

"Although specific details are yet to be decided, we are studying what kind of scheme is desirable," industry minister Hiroshige Seko told a news conference Thursday.

Tax authorities have pointed out that establishing a scheme to have donations delivered through local governments just to support a specific company could be interpreted as an act aimed at circumventing the law.

Therefore, one option being considered is to apply the envisioned scheme more generally to support companies that have become victims of crimes, not only Kyoto Animation, the sources said.

Kyoto Animation, often affectionately referred to as "KyoAni" by fans, is known for works such as "K-On!" and "The Melancholy of Haruhi Suzumiya," which depict the everyday lives of high school girls.

A studio of the company in Kyoto's Fushimi Ward, the center of its anime production, was set ablaze in the attack on July 18, leaving 35 people dead and dozens injured.

The suspect, Shinji Aoba, spread and ignited gasoline inside the three-story building but has since remained hospitalized with severe burns. Police are waiting for him to recover before they serve him with an arrest warrant for murder and arson, among other charges.


©2019 GPlusMedia Inc.

Login to comment

considers? pfff. In these kind of cases, donations should go to the victims 100% no questions asked. Donations to politicians them 100%!

6 ( +7 / -1 )

That's sad that the government even needs to consider. It was a domestic terrorist attack that claimed so many lives. Just let the victims and the company have all of the donations. Pretty simple decision

4 ( +6 / -2 )

The government is intent on taxing this country to death. And censors suck.

5 ( +6 / -1 )

From a business perspective, I can accept the loss of personnel as potentially damaging, (thought in sure there are un(der) employed illustrators out there who would jump at the chance of working for KyoAni, but there is such a thing as insurance. If they are not adequately insured, that is their negligence and I don’t see why they should be reliant on the goodwill of third parties. After all, we’re not talking about an Act of God here.

Donations for the injured and bereaved are a separate matter.

1 ( +1 / -0 )

Just for clarification, but are these donations to the company itself, not to the bereaved?

At the time of the attack, the door was unlocked because they were having a meeting with TV people that day. It is possible there are victims who were not KyoAni employees. Freelancers and temp staff from Pasona etc. too.

3 ( +3 / -0 )

Kohakuebisu, “Just for clarification, but are these donations to the company itself, not to the bereaved?”

The answer is in the first sentence of the article.

0 ( +0 / -0 )

Okay, I get it now. The bereaved families are a separate issue.

There are other upvoted comments about victims, so I suppose I'm not the only one.

1 ( +1 / -0 )

Did I miss the tax breaks going for the Fukushima victims? I guess KyoAni is more important.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites