NO&T secures a National Tax Tribunal decision, cancelling a reassessment issued under the Japanese Controlled Foreign Companies (CFC) regime

In an administrative appeal before the National Tax Tribunal seeking the cancellation of a reassessment issued under the Japanese CFC regime, NO&T secured a decision in the taxpayer-client’s favor. In March 2024, the National Tax Tribunal fully accepted the taxpayer-client’s arguments and cancelled the reassessment to the full extent of the taxpayer-client’s appeal. The National Tax Tribunal’s decision reduced the taxpayer-client’s corporate taxable income by approximately JPY 4.5 billion.

The main issue in dispute was whether a legal arrangement involving a Dutch entity, Stichting, constitutes a “trust” for Japanese tax purposes. The National Tax Tribunal affirmed, in line with the taxpayer’s argument, that such legal arrangement does, indeed, constitute a “trust” for Japanese tax purposes and cancelled the reassessment.

One of our partners, Koichiro Yoshimura, led the team representing the client.

NO&T has a strong track record in handling litigious tax matters, having obtained favorable outcomes in many high-profile tax litigation matters. For more information on the tax litigation cases in which NO&T has secured favorable outcomes, please visit Tax Controversy.