During my time as a Diet member, I often raised the importance of using the Advanced Ruling System.
To answer my calls for a closer examination of the Advanced Ruling System, the former Finance Ministry and the National Tax Administration began to take steps on key tax issues regarding derivatives, for example, when taxes are imposed on premiums and proceeds.
The NTA requested that industries provide it with information on the complicated structure of these new financial products. After gathering their opinions, they issued guidelines on how to treat various kinds of derivatives. The guidelines were published on Oct. 30, 1998.