What is the “Account Management Law” that seems to link bank accounts and my number from April 1?

It was decided three years ago…”

• From April 1, my number will be linked to my bank account.
• Although they say it is voluntary, if the person does not refuse, his/her bank account will be automatically linked to the number.

These concerns were voiced on some social networking sites in March. However, even after April 1, information regarding the linkage of one’s personal number to one’s bank account has not been made known to the public. Even after researching, the correct information is still not clear.

I have not been contacted by the bank, but I wonder if my account number has been linked to my bank account without my knowledge. What should I do to protect my property?

We asked Takahiro Ota, a tax accountant and vice-president of “Enmaren Inheritance Tax Corporation.

The “Law Concerning Management of Deposit and Savings Accounts Using Personal Numbers Based on the Will of Depositors (hereinafter referred to as the “Account Management Law”)” was actually decided three years ago, and it was only decided that personal numbers (hereinafter referred to as “My Number”) would be assigned to deposit and savings accounts within three years. That has now been finalized, and the numbering began on April 1.

Many people may say, “I have never heard of this” or “I never heard of it before. However, if you search for “Outline of the Law Concerning Management of Deposit and Savings Accounts Using Personal Numbers Based on the Will of Depositors,” you can find PDFs of the details on the websites of the Financial Services Agency and the Digital Agency.

In fact…?

In fact, will my number be linked to my bank account from April 1?

Whether or not your bank account will be linked to your personal information will be decided based on your will. It is a rule that banks and other financial institutions have to ask depositors whether or not they want to register their personal information with the bank.

What is worrisome is when a depositor chooses to use his/her own number as identification when opening an account or using online banking. Also, even if one does not present one’s own number to the bank, I have a feeling that the government may have already linked one’s own number to the bank account when making Corona benefit payments, etc., but will it not be linked without one’s permission? It’s not obligatory, but if you don’t refuse it, it’s automatically considered consent.” ……

When opening an account at a bank, the submission of one’s own number is considered optional, but it says that one must produce either a my number card or a notification card along with personal identification documents. At this time, if you have submitted your My Number card or notification card to the bank, your My Number will be automatically linked to it. In addition, you are required to submit your My Number when trading in financial products such as NISA.

However, since the story does not begin until you submit that document, I doubt that it will be registered without your permission.”

What are the risks and disadvantages of linking?

Last December, it was reported that there were approximately 1.39 million cases of mismatched names and other information on health insurance cards linked to one’s personal identification number. Looking at the current situation, which is riddled with other troubles, many people are probably too afraid to link their bank accounts to their personal information. Mr. Ota explains the risks involved in linking bank accounts.

Basically, there has always been a risk of linking one’s personal number to another person. Furthermore, if you link it to your bank account, there is a risk that your assets may be revealed to others, or that you may be able to see other people’s data.

Therefore, if you do not want to give out your personal number, you do not have to. As long as it is said to be voluntary, there is no penalty, and although you will be asked to submit your personal information when filing a tax return, it is possible to file a tax return without submitting your number.

The tax law actually started on April 1, but why is it that it is not well known to the public at all?

The same can be said about the tax law, but basically it is designed so that only a few people who benefit from it can gather information and use it well. But I don’t think I’d file it myself if no one told me anything.”

If you look at the Account Management Act in terms of gains and losses, is it a win-win for the taxpayer to tie it up, or is it a ……?

‘I rather think it would be easier for them to be tied up. It is actually quite difficult to find the estate of a deceased person because you can’t go through all the financial institutions. However, if everything is tied up with my number, then all I have to do is apply to one bank and I can find all the information, so I think it would be easier for the heirs of the children and grandchildren’s generation.”

Some people may have the image of being stripped of their personal information when they hear that their bank accounts will be linked to their personal information number. However, the original purpose of the system was to simplify inheritance, he says.

In the first place,” says Ota, “there are not many taxes on property, especially financial assets.

Inheritance tax is based on the basic exemption, which is calculated as follows: basic exemption = 30 million yen + (6 million yen x number of legal heirs).

In other words, if you do not have at least 36 million yen in assets, you will not be subject to inheritance tax, and only 8% of all people in Japan are subject to this tax.

Taxes are basically applied to income, and as for current property, for example, real estate is subject to property tax, but real estate is always investigated by municipalities, so it is immediately discovered by the authorities.

Is a wardrobe deposit the only way?

Some people think it would be better to keep their assets in a safe deposit box, but Mr. Ota assures them that a safe deposit box can be easily discovered.

There is a comprehensive national tax management system called the KSK system, which keeps track of the approximate amount of an individual’s assets. The annual income tax return and year-end adjustment reveal your annual income, and if you buy real estate, the system also collects information on that as well. Even if you sell gold, the tax office will be notified if the sale is worth more than 2 million yen.

In other words, they know whether you have your own number or not. ……

That’s right. According to a veteran of the tax office, the most orthodox method of tax evasion is a wardrobe deposit. Those who are subject to tax audits are mainly wealthy people who originally had assets of 300 million yen or 500 million yen, and 90% of them are excluded just because they are subject to inheritance tax.

Furthermore, only about 20 to 30% of those people actually receive a tax audit, and the audit comes when they have a certain amount of money in a safe deposit, such as 5 million yen or more.

Incidentally, even if you have property in the hundreds of millions of yen, you will be found out if you have about 5 million yen in a safe deposit. The tax office can look at passbooks for the past 10 years, so if there are many withdrawals there, they will know to some extent how much is left on hand. I believe that the tax inspectors make inquiries to the banks and order notices from them to find out.

I don’t have a great deal of money, but I thought about withdrawing as much as I could and putting it in a safe deposit for the time being,” he said. ……

But I thought about putting as much money as I could withdraw and putting it in a safe deposit box. For example, if you withdraw 500,000 yen every day, there is a sense that you are trying to evade taxes, so the tax office makes inquiries at the bank as soon as they suspect that you are doing something suspicious.

When asked whether it is better to link one’s personal number to one’s bank account or not, Mr. Ota’s conclusion is as follows.

However, even if there is no inheritance tax involved, everyone will close their bank accounts when their parents pass away, so if you want to protect your children, I think it is better to link your number to your bank account. However, if you feel even a little uncomfortable about the government keeping track of your wealth, you don’t have to take it out.”

However, even if you are not a wealthy person, your property is already known to the tax office. On the other hand, if there is a mistake that could be tied to someone else, it is possible that it will be discovered “when the heir goes to go through the procedures,” that is, decades after your death.

We would like to make a well-considered choice after knowing the advantages and disadvantages.