TOKYO (TR) – The crushing weight of Japan’s inheritance tax has been thrust into the political highlight after the son of late actress Miho Nakayama deserted receiving her 2-billion-yen property to keep away from a ruinous tax invoice, stories the Sankei Shimbun (Apr. 9).
During a House of Councillors’ Financial Affairs Committee session on Thursday, Sanseito Party lawmaker Sayaka Shioiri demanded an overhaul of the nation’s tax system, citing the high-profile household drama.
Nakayama, who shot to fame within the 1995 hit movie “Love Letter,” died all of a sudden in December 2024 on the age of 54. She left behind an property valued at roughly 2 billion yen, comprised largely of actual property and profitable royalties.
However, Japanese tax regulation mandates a staggering 55-percent most tax fee for inheritances exceeding 600 million yen. Worse nonetheless, the estimated 1-billion-yen tax invoice should be paid completely in money inside 10 months of the dying.
Unable to liquidate the non-cash property in time with out dealing with fire-sale costs or incurring large money owed, Nakayama’s son, who resides in Paris, was compelled to resign the inheritance completely.
“Public interest in the heavy burden of inheritance tax is growing,” Shioiri instructed the committee, declaring that the strict cash-payment rule strips households of their rightful property.
Family drama
The monetary mess is compounded by a bitter household drama. With the son abandoning his declare, the 2-billion-yen property reportedly defaults to Nakayama’s mom as the following authorized inheritor — a lady the late actress was deeply estranged from for years.
Despite the uproar, the federal government confirmed no indicators of budging. Deputy Finance Minister Shoji Maitachi dismissed the criticism, arguing that Japan’s “average” inheritance tax fee throughout all residents is simply about 14 %.
“Some countries like the U.K. have a flat 40-percent rate, while the U.S. allows massive basic exemptions of over 2 billion yen,” Maitachi said. “It is difficult to make simple international comparisons.”
Critics on-line, nonetheless, proceed to slam the system, declaring a obvious double commonplace: whereas grieving households are compelled to give up half their wealth to the state, political funds handed down by hereditary lawmakers stay completely tax-free.