Japan's tax system appears to be one of the most difficult concepts for foreigners to understand. It would come as no surprise if a foreigner working in the country -- in particular someone employed without a proper visa -- knew little or nothing about income tax returns.
In recent years, however, foreign workers, including illegal workers, have grown increasingly aware of the system, which entitles them to tax refunds, and are demanding that uncaring employers fulfill their obligations under the system. Through income tax returns, workers may be refunded part or the total of all taxes deducted from their wages, contingent upon such deductions made for their dependents, medical fees and insurance payments.
Tax authorities have remained indifferent to the visa status of foreigners claiming their due rights as workers, but stress workers' obligation to pay taxes, including residential taxes collected by local governments. Syed Riaz Ahmed, 44, a Pakistani man working without a proper visa, said he paid some 457,000 yen in income tax payments from 1993 through 1995. In fact, the payments went to his former employer, owner of an auto parts factory in Yokohama, who deducted the amount from Syed's monthly salaries in advance.