Assisting our clients with tax controversies is an area that is directly connected to one of our firm’s foundational goals, namely, contributing to the realization of the rule of law. In the past, tax controversies were not an area of practice that business law firms such as ourselves would deal with in Japan. However, after the two giant landmark cases, the Tokyo & Osaka proforma tax lawsuits (banking business tax lawsuits) and the IBJ tax lawsuit, Japanese tax controversies have dramatically changed. In Japan, it is now very difficult to prevail in tax lawsuits against the tax authorities, which is exemplified by the fact that the prevailing success rate for taxpayers is, even including a partially favorable decision, approximately 5-10 percent. Even under such circumstances, our firm has achieved tremendous results in many tax litigations. Consequently, our firm is regarded as a leading firm in the area of tax litigation.
In addition to tax litigation, we have prevailed in reversing tax assessments at the National Tax Tribunal, and have also been successful in reversing tax assessments in objection proceedings.
Further, the treatment of the tax audit process by tax offices has traditionally been handled by licensed tax accountants in Japan. However, the number of cases where lawyers deal with the process has been increasing. In this process, there have been many cases where we have submitted legal opinions, and convinced the tax authorities to withdraw a suggestion of a tax assessment.
We cooperate with several licensed tax accountants who previously worked at the tax authorities and are experienced in tax controversies, and our lawyers work closely with them to achieve the best results for our clients.
- Shionogi & Co., Ltd. - Rescission of tax reassessments
- Shionogi & Co., Ltd. - Rescission of tax reassessment
- 2012 - 2014
- Tax litigation regarding securitization transactions for domestic housing loans
- 2009 - 2010
- Tax Litigation concerning Finite Reinsurance Policies (Tokyo High Court)
- 2007 - 2011
- Tax litigation concerning whether a Delaware limited partnership falls under the category of a “corporation” under Japanese tax laws (Tokyo District Court)
- 2005 - 2007
- Tax Litigation concerning Repurchase Transaction (Supreme Court, Tokyo High Court, Tokyo District Court)
- Constitutional Law Litigation against the Tokyo Metropolitan Government and Governor Ishihara by 21 City Banks in Japan
- Constitutional Law Litigation concerning the Osaka Metropolitan Tax Based on Business Size
- 1997 - 2004
- The Industrial Bank of Japan Ltd.’s action against the National Tax Agency, contesting the NTA's disallowance of IBJ's write-off of bad loans for the principal amount of approximately 370 billion yen
Tax Implications on a Decrease of the Capital Holdings and Paying Back to ShareholdersArticles
Limitations on deductible losses for bad debt reserves (November 2012)Business Tax Law Newsletter
Assessing burden of proof in transfer pricing disputes (June 2012)Business Tax Law Newsletter