The Resolution and Collection Corp. has given up its claims on loans worth dozens of billions of yen it inherited from failed financial institutions since its inception in April 1999, it was learned Thursday.

In principle, the RCC, a debt-collecting organ affiliated with the quasigovernmental Deposit Insurance Corp., is prohibited from making such debt waivers.

However, the RCC can do so in "exceptional" cases, for instance, to keep afloat a financially troubled borrower that would otherwise go under, thereby maximizing the amount of collectible loans.

Such exceptional treatment has been applied to dozens of borrowers -- mostly small and medium-size companies and individuals, sources said.

In a recent high-profile case, the government's attempt to waive billions of loans to department store operator Sogo Co. failed amid mounting public criticism.

However, the latest findings show that such debt waivers have become an almost regular practice by the RCC.

While acknowledging that it has given up some of its loan claims in exceptional cases, the RCC has yet to reveal the beneficiaries of these waivers, except for one -- Marui Imai, a Hokkaido-based department store operator.

Concerning the future possibility of disclosing information on its debt waivers, the RCC said it will consult with the DIC.

Ministry maneuvering

The Finance Ministry has not received a formal request from the Financial Services Agency to maintain the current capital gains tax system, Vice Finance Minister Toshiro Muto said Thursday.

Muto was responding to FSA Commissioner Masaharu Hino's comments earlier this week that changing the system could have a negative impact on the stock market and that he may therefore ask the ministry to keep the system intact.

Muto said his ministry remains committed to reforming the capital gains tax to achieve a fair taxation format.

Under the current capital gains tax format, introduced in April 1989, investors are allowed to choose between two tax reporting systems on capital gains when they sell shares. One of the reporting systems, called separate withholding tax, is slated to be terminated in March.

Most investors use this system because it is simpler and because the tax rate is lower than on the other system, called separate self-assessment taxation.

There have been growing calls from securities industry officials and ruling party politicians for maintenance of the current system, on the grounds that termination may cause an exodus of investors from the stock market.

Muto said the issue will be discussed by the government's Tax Commission.