Current tax issues of stock redemption

2017 Fiscal Year Final Research Report

• Project/Area Number: 26380041
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public law
• Research Institution: Waseda University
• Principal Investigator: Watanabe Tetsuya 早稲田大学, 法学学術院, 教授 (10273393)
• Project Period (FY): 2014-04-01 – 2018-03-31
• Keywords: 法人税法 / 自己株式の取得 / 配当課税 / 資本金等の額 / 外形標準課税

Outline of Final Research Achievements

This study focuses on the recently occurring taxation problem related to the acquisition of treasury shares (stock redemption), rather, it examined from the perspective of legislation theory (not construction). That is, the problem of taxation on the shareholders' side, ②the problem of taxation on the corporation side, and ③problem in Size-based Business Tax.
Concluding each conclusion very briefly, ①We should introduce a provision that treats pro-rata stock redemption as dividend, ②We should abolish Article 8 (1)-1 of the Corporate Tax Act Enforcement Ordinance, and according to it, Article 119 (1)-10 should be revised, ③ Regarding the Local Size-based Business Tax, new provision should be enacted so that the “Amount of Capital etc.” is not unfairly reduced by redemption through the market.

Free Research Field

租税法