Stuck in the Edo Period: Why the Global Notion of “Taxpayers as Customers” Hasn’t Taken Root in Japan.
“The right to file a tax return should be granted to those who wish to file their own taxes.”
On its official website, the TC Forum lists one of its proposals for establishing taxpayer rights as, “The right to file tax returns should be widely recognized for more than 40 million salaried workers.” Does this align with Minister Kono’s proposal to have all citizens file tax returns?
“At TC Forum, we believe that an option system should be introduced for the year-end tax adjustment. Even if salaried workers wish to file their own tax returns, the current system doesn’t allow them to do so.
The year-end adjustment requires submitting forms for deductions like the dependent deduction and insurance premium deduction, and salaried workers must submit these documents to their company.
For example, a person who has divorced or lost their spouse and has not remarried can receive the widow/widower deduction, and someone with a disabled family member can claim a disability deduction. Even though these are quite personal circumstances, you have to report them to your company in order to receive these deductions. From a privacy perspective, how is that acceptable?
Considering that, I believe we should recognize the right of individuals who want to file their own tax returns.”
Minister Kono has explained his stance on the abolition of the year-end adjustment, as announced in his pledge, on his official website and on X (formerly Twitter).
According to him, under this plan, businesses would send salary and other income data to a unified national digital portal each time they pay employees. This portal would consolidate individual income, insurance premiums, income tax, and local taxes using the My Number system, and display the information on the My Number Portal. This data would then be automatically input into e-Tax or eLTAX via the My Number Portal.
“It’s impossible to just push a button and make it happen!”
At a press conference on the 5th, he stated,
“Ultimately, all of your tax return forms will be automatically filled out, and you can just take a look at the numbers and press a button to complete your tax return.” He also mentioned, “An environment will be created where we keep a close eye on how taxes are used.”
However, many citizens seem to believe that Minister Kono’s aim is more about promoting the use of My Number cards than enhancing tax awareness.
“For example, when applying for a medical expense deduction, it’s said that the My Number Portal and e-Tax are linked, so medical expenses for the entire year can be automatically filled in on the tax return. But the medical expense deduction isn’t limited to just the medical fees paid at hospitals and pharmacies.
Expenses for out-of-pocket medical treatments, transportation costs for visits (like taxi fares), and costs for over-the-counter medicines and diapers are also included.
However, the My Number health insurance card is linked only to insured medical treatment, so other expenses do not reflect on the My Number Portal. Whether it will be possible to automatically include all these detailed individual circumstances remains uncertain.
If Minister Kono intends to implement the proposed tax return system, citizens will need a considerable preparation period. Just like with the My Number health insurance card and the invoice system, I believe that forcibly setting deadlines and starting initiatives without the public’s understanding infringes upon taxpayer rights.”
