Business Succession and Inheritance – GPC JAPAN

Business Succession and Inheritance

We provide consulting services and tax return services for inheritance and inter vivos gifts.

The number of the ancestor in 2010 was approximately 1,200,000, and is said to be that approximately the number of ancestor t who were actually imposed were 50,000. Considering the percentage of ancestor taxable was low 4 percent for several years, one can say that it is relatively low in comparison with other tax items.

However, with the bill “Integrated reform of the social security and tax systems” focusing on rising of consumption tax sent to the diet on March 30, 2012, and further defrayment increase to high-income earners is demanded with the increase of consumption tax rate, we expect to face curtailment of the basic exemptions and the estate tax increased, including increases of the maximum tariff are planned as well.

If this bill is enacted by the diet, the percentage of ancestor taxable is expected to rise to 7~8%, which probably will lead to the fact that people who have land and/or building within Tokyo, will be taxable.
We will provide clients with ideas of provision in order to face this big tax increase, as well as supporting clients with inheritance tax return. We also provide emigrant services for low tax countries.

Consulting service for inheritance

Based on the assets client possesses and the current situation, we will preliminary calculate the inheritance tax and provide clients with the below advice.

  • Tax advantage
  • Tax fund
  • Partition of the estate

Consulting for inter vivos gifts

To prepare for the big tax increase, inter vivos gifts will be a very important countermeasure.

Based on the clients’ demand, we will consult which and when estates should be gifted.
We will propose clients about calendar year gifts which is hard to be denied by the tax authority and special provision when donating the dwelling acquisition fund.

Consulting for business succession

The method of business succession defers on who the successor is; relatives, employee, or others.
We will first hear what owner thinks and what he/she wishes to do, in order to point out where the issue lays. After that, we will propose the ways for business succession; either gifting inter vivos to children or grand children who are the successor, or utilizing employee stock ownership plan. We can also propose tax extension regarding inheritance tax and gift tax of unlisted shares if the successor is a relative.
After creating the above scheme, we will support our clients until tax return.
If there are any needs on fund for business succession, we will be able to introduce our clients to finance institution.

Tax return for inheritance tax and gift tax

We will fix and value the assets of the ancestor, and then will prepare Agreement on Division of Inheritance, and finally will return inheritance tax.
For fixing the decedent’s estate, we will value as low as we can and add various tax deduction so that the amount of tax payment would be minimum.

We also deliberate deposits under decedents’ name which has been frequently investigated by tax authorities.