Abstract

This study analyzed trends in precedents related to education tax from 2011 to 2021. All of the collected precedents related to education tax are related to profits, the base of education tax for financiers and insurers, and the precedents related to gains and losses on valuation of currency derivatives accounted for the largest proportion, followed by in the order of precedents pertaining to concurrent businesses, gains or losses from the sale of non－performing loans, and other tax bases. The results of the study are as follows： First, the court excluded gains and losses on valuation corresponding to the years prior to 2009 from the tax base, while summing up gains and losses on valuation of currency derivatives and on derivative transactions corresponding to 2009 and subsequent years to calculate the tax base. It was also judged that gains and losses on valuation of currency derivatives did not fall under the category of other operating income. Second, the court judged education tax obligators according to their actual work and source of income, and not their formal legal status. It is regarded that different taxation based on whether concurrent businesses are being operated is against the principle of equity in taxation. Third, the court stated that among internal profits excluded from the tax base, the amounts equivalent to the loss of bad debts and allowances for bad debts out of gains from the sales or redemption of loans were not clearly to be considered for the tax base. Fourth, the court judged that although an insurance contract is maintained, the decrease in liability reserve due to actual insurance payment is included in the extinguished liability reserve deducted from premium income. Conversely, the extinguished liability reserve from which insurance money has not actually been paid is not included in the scope of the deductible liability reserve. Fifth, the court judged that service fees paid by ATM users is a profit that belongs to a financial institution.

Keywords

• Education Tax
• Financiers and Insurers
• Trends in Precedents

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