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Abe asks Tax Commission to come up with new tricks

Kyodo

The Tax Commission on Monday began discussing longer-term issues, such as how to prevent tax evasion by multinational corporations, and was asked to solve a stark contradiction in “Abenomics.”

At its first meeting since the government led by the Liberal Democratic Party was formed Dec. 26, Prime Minister Shinzo Abe urged the panel’s members to develop tax measures that can improve economic growth and fiscal consolidation at the same time — one of the most elusive and puzzling parts of his “Abenomics” spiel.

The government panel will also begin debating tax reform plans for fiscal 2014 in September, two months earlier than usual, to map out concrete tax measures to bolster business investment, steps Abe has pledged to put into the second version of his disappointing economic growth strategy when it is retooled later this year.

Abe’s government has said the decision on whether to go ahead with the first stage for doubling the sales tax next year will be made around October.

During Monday’s meeting, University of Tokyo professor Minoru Nakazato was tapped to chair the commission, which advises Abe.

Under the previous government led by the Democratic Party of Japan, which was in power from 2009 to late last year, finance ministers were in charge of the panel.

The tax panel plans to draw up Japan’s vision for international rule-making on stopping tax evasion by multinational corporations.

In a communique released after their summit in Northern Ireland last week, the Group of Eight leaders agreed to “global solutions to the problems of tax evasion and tax avoidance.”