$2m Tax Bill For "FG" Toddler

[Mulboyne]

[floatl][/floatl]Asahi: Tax bureau goes after publishing chairman's grandchild
Tax authorities here have ordered a toddler with U.S. nationality to pay around 250 million yen ($2 million) in back taxes and penalties, sources said. The odd order came about because of a publishing house chairman's efforts to save on taxes. The chairman of Chuoh Publishing Co. bestowed about 500 million yen in U.S. bonds to his newborn grandchild in the United States in 2004 under a system that does not charge taxes for assets sent to a foreign national whose life is based in a foreign country...But the Nagoya Regional Taxation Bureau believes the child's family had only been staying overseas temporarily and was not really based in the United States, the sources said...The child, whose parents are both Japanese, was born in the United States in 2003 and has only U.S. citizenship. The Nagoya tax bureau found that the child's father, currently an executive at Chuoh Publishing, once lived with his family in the company's facility in Los Angeles, but was traveling back and forth between Japan and the United States. By around 2004, he had built a home in Aichi Prefecture and was living there with his family...more...

(That's at least the third time this picture has been on FG)

[Greji]

[floatl][/floatl]Asahi: Tax bureau goes after publishing chairman's grandchild
Tax authorities here have ordered a toddler with U.S. nationality to pay around 250 million yen ($2 million) in back taxes and penalties, sources said. The odd order came about because of a publishing house chairman's efforts to save on taxes. The chairman of Chuoh Publishing Co. bestowed about 500 million yen in U.S. bonds to his newborn grandchild in the United States in 2004 under a system that does not charge taxes for assets sent to a foreign national whose life is based in a foreign country...But the Nagoya Regional Taxation Bureau believes the child's family had only been staying overseas temporarily and was not really based in the United States, the sources said...The child, whose parents are both Japanese, was born in the United States in 2003 and has only U.S. citizenship. The Nagoya tax bureau found that the child's father, currently an executive at Chuoh Publishing, once lived with his family in the company's facility in Los Angeles, but was traveling back and forth between Japan and the United States. By around 2004, he had built a home in Aichi Prefecture and was living there with his family...more...

(That's at least the third time this picture has been on FG)

They're probably right. It is inheritance tax and the kid is a duo national. What's worse the US could get him also at a much, much higher rate, although the toddler could get it down with foreign tax credit.

The ACLU wouldn't touch it in that case because it is tax and they support all the taxes the Dems want to impose on ex-pats (Jimmy Carter et al)!

[Mulboyne]

They're probably right. It is inheritance tax and the kid is a duo national.

The case for the defence would say he isn't a dual national: he only has a US passport. The tax bureau is making the point that he is too young to live by himself and so they are making a judgement about where the father was based. Even if they win that argument, it won't be a done deal. They recently lost a case when they failed to prove that a defendant was effectively living in Japan when he claimed overseas status.