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Japan to Create Corporate Numbering System for Tax and Social Security |
| Source: |
japantoday.com |
| Source Date: |
Monday, January 10, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Japan |
| Created: |
Jan 11, 2011 |
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Japan plans to create a numbering system for corporations for tax and social security administration to collect pension premiums and income tax from their employees, as well as corporate income tax, sources close to the matter say.
The corporate-numbering system is expected to improve efficiency of operations for local governments as well as corporations by reducing expenditures and clerical routines regarding such administrative work.
It is also expected to prevent companies from failing to declare corporate incomes and evading taxes as the system will enable the government to keep a better grip on business income.
The move comes after the government decided on a plan to create a citizen-numbering system for such purposes in December.
The government will discuss the corporate and citizen numbering systems together and plans to submit a basic bill to the Diet later this year.
However, experts says that advanced preventive measures on information leakage will be vital for introducing the corporate-numbering system as such consolidated management of corporate and personal information could lead to leaks of a large amount of such information.
The government manages corporate information by using several kinds of numbers including those for registered companies and for insurers.
The government earlier said it intends to provide citizens with individual numbers, separate from the existing resident registry code numbers, to collect pension premiums and taxes together by creating a ‘‘Revenue Agency.’‘
The citizen-numbering system is expected to make it easier for the government to introduce income-proportionate pensions and ease tax burdens on low-income taxpayers upon a consumption tax hike, as promised by the Democratic Party of Japan during the 2009 general election campaign.
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Japan to Create Corporate Numbering System for Tax and Social Security Japan plans to create a numbering system for corporations for tax and social security administration to collect pension premiums and income tax from their employees as well as corporate income tax sources close to the matter say
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