The largest tax refund ever ordered for an individual by the Japanese Supreme Court has been awarded to Toshiki Takei, a former director of the consumer loans firm, Takefuji Corporation.
The record $2.4 billion tax refund, is not only the largest ever granted to an individual, it is also twice as big as Japan’s entire annual gift revenue.
The drama has taken over a decade to unfold as Mr. Takei was ordered to pay 160 billion yen ($1.92 billion) in gift tax in 1999 after receiving shares in a Dutch company from his parents.
The Supreme Court ruled that tax authorities had no right to ask for the tax in the first place and must return the money to Mr. Takei, with an interest rate of 4%, which brings his total payout to 200 billion yen (US $ 2.4billion).
In his favor was the fact that authorities did not believe Takei when he told them he had been living in Hong Kong and therefore not liable for the tax. They argued his residence was only temporary and a ruse created so that he could avoid paying the absurdly exorbitant tax.
The Supreme Court ruled that his residence in Hong Kong was legitimate in the years the stock gift was made and therefore as a resident of China, he was exempt from the Japanese tax.
“What will be returned to Mr. Takei is an asset originating from excessive interest (charged on borrowers). We want the entire money back,” said Yoshio Honda, Takei’s lawyer.
The ramifications for this ruling are astounding as the media claims this has opened the door for up to 2 million other people to seek interest payment refunds in accordance with a 2006 ruling.
Where were YOU when all the excess interest was charged?
Anywhere near a place where you can collect?
Something to think about, no?