<Politics and Money Thoughts> Yoshikazu Miki, Professor Emeritus of Aoyama Gakuin University (Tax Law)
The Liberal Democratic Party faction’s political party slush scandal has highlighted the deep roots of the recurring problem of “politics and money.” Approximately 30 years have passed since the Heisei political reform sparked by the Recruit Incident. What was lacking in the reforms at the time? What does it take to eradicate the problem? We asked experts from various fields.
Yoshikazu MikiBorn in Tokyo in 1950. His specialty is tax law. He is a lawyer and former member of the Government Tax Commission Expert Committee. After serving as a professor at Aoyama Gakuin University, he served as president of Aoyama Gakuin University from 2015 to 2019. He has written many books on taxation, including “Japanese Taxes” and “Tax Taboo.”
◆What is the logic of politicians that enables “tax evasion”?
-Aren’t taxes levied on slush funds related to the Liberal Democratic Party factions?
“Even if a political group such as a faction holds political fundraising parties and earns income, it is not treated as a “profitable business” that is subject to corporate tax and is exempt from taxation. As in this case, that income is returned to members of the Diet. If received, it becomes “miscellaneous income” on the receiving side, and income tax liability may arise.”
-If the members of the Diet have not filed tax returns, they are probably evading taxes.
Yoshikazu Miki (file photo)
“The purpose of the slush funds is still unclear, but if the money is used for personal purposes, it may constitute tax evasion.However, if it is spent on political activities, it can be deducted as a necessary expense. Therefore, the argument that the report was not filed becomes valid.”
-Political distrust is rising due to the sloppy response.
“We, the people, pay 250 yen per person in taxes, which are the source of political party subsidies. This system was introduced with the promise of making money-friendly politics. The politicians are processing political funds into slush funds. Taxpayers should be even more upset that those who have the power to decide how their tax money is spent should be the ones who should be the ones in charge, and the foundation of trust needed to ask for their share of the tax burden has been lost. ”
◆As long as politicians decide the rules, they will not create a system that puts them at a disadvantage.
– Regarding political funds, former Prime Minister Shinzo Abe’s political organization was taken over by his wife Akie, and a total of approximately 200 million yen was transferred tax-free from five other Abe organizations.
“Inheritance tax and gift tax are not imposed even if the representative of a political organization is replaced by a relative or funds are transferred between organizations in the form of donations. “This is not illegal, but it is very problematic.”
-What are the specific problems?
“If you inherit a huge amount of political funds from your parents without paying taxes, it will give you a decisive difference from other candidates and make it easier to win the election.The job of taking care of the people’s taxes can be inherited as a family business.Hereditary politics It’s one of those hotbeds where only houses are born.”
– Is it necessary to give tax breaks to politicians and political organizations?
“Political activities are for the public good, not for profit, and must be carried out freely.Therefore, there is a general belief that it is better for the taxing power not to intervene, but as long as politicians decide the tax system, We will not create a system that puts people at a disadvantage. It would be better to have a third party independent from politicians create the rules. Preferential treatment for politicians and political organizations should be abolished, and they should be treated the same as ordinary citizens. We should tax it.” (Interviewer: Toyoshi Kondo)
political funding and taxesIncome tax is levied on politicians’ personal income, which is equivalent to the salaries of members of the Diet. If you receive a donation, it becomes miscellaneous income and is subject to income tax. Research and public relations accommodation expenses (previously known as document and communication transportation expenses) and legislative office expenses are exempt from tax. In principle, political organizations such as political parties and factions are not taxed on the income they collect from donations and parties, and only their profitable businesses are subject to corporate tax.
2024-01-21 21:00:00
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