Archive for June, 2012

Offsetting individual tax losses – example

June 4, 2012  |  Individual  |  No Comments

The Japanese one thousand yen note includes a view of Mount Fuji from one of its five nearby lakes.

The ability to offset tax losses arising from one source of income against taxable profits arising from another is often critical for tax planning purposes, for example through ensuring that a taxpayer is taxed on his overall economic gain.

The Japanese individual tax system has a rules that govern such loss offset which are discussed in this article. Below is a worked example of how these rules apply in practice so it is helpful to read it together with the earlier referenced article.

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Individual tax and setting off tax losses

June 1, 2012  |  Individual  |  No Comments

A path through the Japanese "Southern Alps" - a range of mountains between Tokyo and Osaka.

The ability to offset tax losses against taxable income having a different source is often a key issue in tax planning.

Where such offset is not available a taxpayer may find themselves carrying forward a tax loss that they cannot use or losing the benefit of a tax loss altogether, hence paying tax on an amount of income greater than their overall economic gains. Read More