Top court rules Daiwa bank abused tax deduction system
December 19, 2005The Supreme Court ruled Monday that tax authorities' 1995 imposition of additional taxes on interest earned by Daiwa Bank in overseas deals were legal, overturning lower court rulings. Presiding Justice Isao Imai supported the tax authorities' claim that the bank, now Resona Bank, abused a system allowed to Japanese companies and individuals to help them avoid double taxation on overseas earnings in connection with loans it extended to a foreign firm.