Legal Innovation Program
Bad Debt Losses and Debt Relief: Developments since the Supreme Court Decision in the Case of Industrial Bank of Japan [in Japanese]
DateSep. 2021
BibliographyJapan Tax Research (Zemu Jire Kenkyu)
Summary The article examined examples regarding whether bad debt losses are allowed as deductible expenses under the Corporate Tax Law. Referring to court precedents after the Supreme Court ruling in the case of Industrial Bank of Japan and guidance by the National Tax Agency, the article explained the circumstances on the creditor's side regarding recoverability of debts, special liquidation procedures in debt waiver, and judgments regarding the applicability of charitable deductions.