Japan to Boost Tax Collection amid Expanding Sharing Economy

Economy Politics Lifestyle

Tokyo, June 28 (Jiji Press)--Japan's National Tax Agency will set up project teams at its regional taxation bureaus with the aim of fully collecting income tax from individuals in response to the expansion of the so-called "sharing economy" and other types of online economic activities.

The teams will specifically gather information about the sharing economy, parts of which are "minpaku" lodging services and online flea markets, and cryptocurrency transactions, the sources said.

According to the agency, these activities cover a wide area and change quickly, making it difficult to fully grasp what are actually happening. In addition, many salaried workers are believed to be engaged in side jobs but have failed to file tax returns, as they are unfamiliar with the procedures.

The ministry's investigations have already revealed failures to declare cashable points earned through online video distribution, gains from cryptocurrency trading and profits from online ticket scalping.

In July, the agency will deploy a total of 200 officials at its 12 regional taxation bureaus to set up the project teams. They will call on individuals through industry groups not to avoid filing tax returns while investigating into problematic tax payers.

[Copyright The Jiji Press, Ltd.]

Jiji Press