* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, July 11, 2010 Issue No. 573<br>
<br>+++ INDEX<br><br>- What's New<br>- News<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback<br>- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br>
<br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br><a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br>
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or call: 03-4550-2557.<br><br>------------- PBXL is Business Communications -------------<br><br><br>+++ WHAT'S NEW<br><br>Well the DPJ has suffered a major loss in the Upper House <br>elections just held, and although the shenanigans of the <br>
previous leadership can be mostly blamed, surely the result<br>can also be attributed to PM Naoto Kan's recent "Tax <br>Scare". Once again we are reminded that like many other <br>countries, any talk of higher taxes, in this case <br>
consumption and personal taxes, is a sure way to get voted <br>down and out.<br><br>Some weeks ago Kan ignored the Ozawa policy of putting off <br>talk about raising the consumption tax for as long as <br>possible, and certainly until after the next Lower House <br>
election. He no doubt thought that he would be welcomed by <br>the general populace for being honest and forthright, and <br>bringing into the light a subject that everyone knows is <br>going to happen -- the rise in the consumption tax from 5% <br>
to at least 10% or even more. But the fact is that people <br>are still reluctant to see such a big increase in daily <br>living costs, even if the consumption tax may be removed <br>for food and some other essentials.<br>
<br>Kan didn't help, either, when he hinted early last week <br>that the government might not just increase consumption <br>tax but also personal income tax for higher bracket wage <br>earners. Apparently there have been proposals to raise the <br>
income tax level of people earning more than JPY18m, now <br>set at 40% to a higher level of perhaps 45% or more. <br><br>There aren't that many people earning this level of income <br>in Japan, but it's not hard to see that those in the <br>
JPY12m-JPY18m bracket imagining that they will be next -- <br>and there are a lot more people getting paid at this level.<br>Let's not forget, too, all those local taxes, which add up <br>to another 10%, making the top effective tax rate 50% <br>
already, one of the highest in the world. It's hard to see <br>anyone putting up with another 10% on top of that again.<br><br>[Continued below...]<br><br>---------- Denphone - Voice, Video and Networks ----------<br>
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<br>-----------------------------------------------------------<br><br>[...Article continues]<br><br>While individual citizens are glumly looking at at higher <br>taxes, it's interesting to see the government at the same <br>
time offering to cut corporate tax rates, which when <br>inclusive of local taxes currently run at 40% - 42%. Add <br>the pseudo-tax of social welfare payments and you have an <br>effective corporate tax rate of around 50%-55% (assuming <br>
that most companies employ staff). <br><br>The new all-inclusive corporate tax rate is mooted to come <br>in at somewhere around 30% and so seems to be a major <br>concession to the fact that the only immediate way out of <br>
Japan's public finances downwards spiral is to keep Japan's<br>multinational corporations' profits in Japan. Typically a <br>multinational can keep its profits where they were earned, <br>providing primary production is there as well, and since <br>
many of them servicing China are based in Hong Kong, with a<br>tax rate of just 16.5%, and for SE Asian business companies<br>are based in Singapore, with a tax rate of 17%, there is no<br>real incentive for them to repatriate the profits back to <br>
Japan.<br><br>So when will the new corporate tax rate take effect? Don't <br>expect it to happen before the consumption tax goes up, <br>likely in either 2011 or 2012. The reason is that dropping <br>corporate tax by 10% will cost the government almost <br>
JPY1trn in lost tax revenue, which the Ministry of Finance <br>wants a replacement for.<br><br>This rejigging of the tax system is going to create an <br>interesting situation which will surely invite heated <br>debate as people start to realize that whatever the merits <br>
of reducing corporate tax rates might be in terms of <br>stimulating the economy, there will be a massive transfer <br>of tax from companies to consumers.<br><br>Indeed, when we read of Kan's hinting that his government <br>
will raise the top personal income tax rate, we immediately<br>thought that if we were in the top tax bracket, we would <br>simply create a company and take advantage of the lower <br>taxes and plentiful tax deductions available to companies. <br>
In fact, if you work at it, self-employed people in Japan <br>can get their effective tax rates down to almost zero. <br>Historically about 70% of Japanese companies make no <br>profits -- many of course intentionally, and therefore why <br>
get dinged as a high-paid employee when you can simply go <br>independent (contracting yourself back to your former <br>employer), and hire an accountant to help you work out the <br>tax deductions as a company?<br><br>Having a company in Japan is good for dealing with many <br>
types of tax, such as inheritance tax -- a <br>once-in-a-lifetime clawback of 50% of your net assets. <br>Whereas individuals die and therefore their families become<br>liable for inheritance tax, companies only die when their <br>
owners want them to. Therefore, it is a common inheritance <br>planning tactic to set up a company for the family's assets<br>and to have this survive the (mostly) patriarch's death. <br>For this reason, some of Japan's largest public companies <br>
have a controlling share held some little private firm that<br>you've never heard of. Poke around in that private firm, <br>though, and you'll find some founding family names.<br><br>Of course Japan needs to do SOMETHING about its horrendous <br>
public debt. But raising taxes probably isn't the answer. <br>Our guess is that consumption will fall after the <br>consumption tax goes up, and companies will continue basing<br>themselves out of Singapore and HK if they can. Dropping <br>
corporate taxes will have some advantage, the DPJ estimates<br>that a 10% cut would pump up the nation's GDP by at least <br>JPY5.9trn, or 1.1%, within 10 years. But the reality is <br>that what Japan really needs is growth through expansion of<br>
population. And the only way to get that within a <br>reasonable time frame is immigration...<br><br>But that isn't going to happen any time soon, so the Big <br>Squeeze will continue.<br><br><br>...The information janitors/<br>
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<br><br>+++ NEWS<br><br>- Tax returns will be hard to track down<br>- SMFG to buy an Ohio bank?<br>- 66-year old lady bashes teenager on bus<br>- Trainees dying at rate of 2-3 a month<br>- Maruha starts fish supplements exports<br>
<br><br>-> Tax returns will be hard to track down<br><br>A ruling by the Supreme Court last week means that people <br>receiving annuity payments from insurance policies and who <br>were paying tax both on the annuity income AND inheritance,<br>
will now be able to get one or other of the taxed amounts <br>refunded to them. One small problem, the government is <br>requiring the insurance companies to do all the tracking. <br>Insurance companies are saying this is unreasonable and <br>
they will be hard pressed to find some individuals who may <br>have moved or be otherwise uncontactable [Ed: Yes, they <br>could be dead.]. ***Ed: We wonder why they don't do what <br>some other countries do, and simply list everyone due a tax<br>
refund on a government website and advertise the URL of <br>that website?** (Source: TT commentary from <a href="http://nikkei.com">nikkei.com</a>, Jul<br>8, 2010)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20100707D07JFA13.htm">http://e.nikkei.com/e/ac/tnks/Nni20100707D07JFA13.htm</a><br>
<br>-> SMFG to buy an Ohio bank?<br><br>An analyst at Guggenheim Securities has publicly said he <br>reckons SMFG is on the track of a potential bank buy-out <br>somewhere in Ohio. Possible candidates according to the <br>
media include KeyCorp of Cleveland, and Fifth Third bank <br>of Cincinatti. Another candidate could be Comerica based <br>in Dallas. SMFG is not giving tips on who it is targeting, <br>but does agree that it has about US$5bn to spend and is <br>
currently looking at around 20 candidate banks. SMFG has <br>raised around JPY1.8trn in two stock sales in the last 12 <br>months, and is realizing that an international investment <br>would provide some balance to the company's current high <br>
focus on Japan. (Source: TT commentary from <br><a href="http://businessweek.com">businessweek.com</a>, Jul 8, 2010)<br><br><a href="http://tinyurl.com/3yjptzt">http://tinyurl.com/3yjptzt</a><br><br>-> 66-year old lady bashes teenager on bus<br>
<br>A 66-year old elderly lady was arrested after roughing up <br>an 18-year old passenger on the bus. Apparently she became <br>incensed when the 18-year old boy would not vacant a silver<br>seat reserved for the aged and infirm. So she let him have <br>
it with her umbrella and broke the youth's nose in the <br>process. Apparently this is not the first time she has had <br>a fracas with young people with bad manners. ***Ed: For <br>some reason, 66 doesn't seem that old these days. We wonder<br>
if this little old lady is working out?** (Source: TT <br>commentary from <a href="http://telegraph.co.uk">telegraph.co.uk</a>, Jul 9, 2010)<br><br><a href="http://tinyurl.com/2ajkcv4">http://tinyurl.com/2ajkcv4</a><br><br>
-> Trainees dying at rate of 2-3 a month<br><br>While pensioners attacking youthful louts on the bus is <br>getting lots of media airtime, foreigners dying from <br>overwork, suicide, and accidents while working as <br>
"trainees" in Japan is not. Apparently 27 "technical <br>interns" who died in 2009 while working in Japan were <br>mainly from Asian countries including China. There are <br>about 200,000 such trainees in their 20's and 30's, and <br>
many work more than 100 hours of overtime, over and above <br>the basic 150 hours of work per month. ***Ed: Japanese <br>activists seeking to improve the trainee work system are <br>saying that the current system is akin to "slave labor",<br>
but we think slaves may be better treated than many <br>trainees are.** (Source: TT commentary from <br><a href="http://telegraph.co.uk">telegraph.co.uk</a>, Jul 6, 2010)<br><br><a href="http://tinyurl.com/2d8x9ws">http://tinyurl.com/2d8x9ws</a><br>
<br>-> Maruha starts fish supplements exports<br><br>Major fish products firm Maruha Nichiro has said that it is<br>expanding its Asian business with the export of fish-based <br>supplements. First off the rank will be a salmon peptide <br>
extracted from salmon skins, which is being sold in Korea <br>to lower blood pressure. Following that will be DHA <br>extracted from Bonito, for supplementing powdered milk <br>(especially milk targeted for children). (Source: TT <br>
commentary from <a href="http://nikkei.com">nikkei.com</a>, Jul 6, 2010)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20100707D07JFA24.htm">http://e.nikkei.com/e/ac/tnks/Nni20100707D07JFA24.htm</a><br><br><br><br>NOTE: Broken links<br>
Many online news sources remove their articles after just a<br>few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br>
<br>---------- Microfinance in the South Pacific --------------<br><br>Help Combat Poverty in the Pacific through MicroDreams<br><br>The MicroDreams Foundation is a U.S. and N.Z. based <br>charitable organization that empowers the poorest of the <br>
poor to grow micro-businesses and pursue their dreams.<br><br>MicroDreams partners with world class micro-enterprise<br>development organizations to provide poor families <br>especially in the opportunity-starved nations of the <br>
Pacific with:<br><br>- Micro-enterprise development training and financing<br>- Childhood education financing<br>- Housing improvement financing<br>- Savings<br>- Life Insurance<br>- Increased self-esteem<br><br>The easiest way to help MicroDreams is by donating online<br>
at <a href="http://www.microdreams.org">www.microdreams.org</a>.<br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ CANDIDATE ROUND UP/VACANCIES<br>
<br>=> BiOS, a Division of the LINC Media group, is actively <br>marketing the following positions for customers setting up <br>or expanding in Japan, as well as other employers of <br>bilinguals.<br><br>** HIGHLIGHTED POSITION(S)<br>
<br>BiOS is currently looking for an experienced and highly <br>successful SMB Sales Manager to join our clients, <br>specializing in sales of Software As A Service. This person<br>will lead a sales department which is currently in the <br>
process of shifting to a direct sales model for Japan, and <br>as such the focus is on direct rather than channel or <br>partner sales. Supporting this, and also forming part of <br>your core duties you will manage lead generation to sales <br>
closure for Small and Medium sized Business, take ownership <br>and direct the metrics of lead generation and opportunity, <br>and lead accounts and take an active role in <br>troubleshooting any changes or issues.<br><br>
The successful candidate in this role will have more than 6<br>years experience in IT software sales, ideally with the <br>SaaS background forming part or all of this, and will also <br>have 2 years experience managing a sales team to successful<br>
meet and beat targets on a regular basis. In addition to <br>this, although not mandatory, the most desirable candidates<br>will have some form of telemarketing and/or telesales <br>experience, and will finally have experience managing <br>
Japanese customers in direct sales.<br><br>Remuneration is up to JPY20m depending on your experience <br>and level<br><br>** POSITIONS VACANT<br><br>- President, Plastics Manf, Ebina, JP12m – JPY18m<br>- eSourcing Account Manager, JPY4.5m – JPY5.5m<br>
- Web Apps Support, LCD Manf JPY3.5m – JPY4m<br>- Unix Engineer, iBank in Okinawa, JPY4m – JPY5m<br>- Fixed Income Developer, European iBank, JPY8m – JPY12m<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:stuart.gibson@biosjp.com">stuart.gibson@biosjp.com</a><br>
<br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>
description and a direct link to the main entry on the BiOS<br>home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>
better, the BiOS Job Mail newsletter is an easy and<br>convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:stuart.gibson@biosjp.com">stuart.gibson@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:stuart.gibson@biosjp.com">stuart.gibson@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>----------- Making Web Sites More Affordable --------------<br>
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<br>***------------------------****-------------------------***<br><br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>---------- CCH Japan presents 'HR Seminar 2010' -----------<br><br>Managing and Motivating Your Japanese Team for Success<br>
<br>'Bridging Cultural Differences as a Leader'<br><br>- What expectations Japanese have of their managers<br>- What Japanese think of Western managers<br>- How to pose questions to get the most informative responses<br>
- How to give directions so that they are clearly understood<br>- Giving feedback to Japanese subordinates<br>- Key cultural differences<br>(directness of communication, hierarchy, and management style)<br>- The new workforce in Japan<br>
(The different generations in the Japanese workplace and more..)<br><br>Date: Thursday, 29th July 1:30pm-5:00pm<br>Venue: Happo-en 5F Linden Room<br>Speaker: Rochelle Kopp, Principal, Japan Intercultural Consulting<br>Number of Seats: 50, Language: English<br>
Fees: 20,000 yen + tax<br>Register at: <a href="https://www.cch-japan.jp/contents/register/form">https://www.cch-japan.jp/contents/register/form</a><br><br>For more details, Please Contact us at: <a href="mailto:support@cch.co.jp">support@cch.co.jp</a>,<br>
or 03-3265-1161, <a href="http://www.cch-japan.jp">www.cch-japan.jp</a>.<br>-----------------------------------------------------------<br><br>------------- ICA Summer Networking Party!!!!! ------------<br><br>The ICA invites you to join our Summer Networking Party at<br>
La Boheme in Shirogane. This will be an excellent <br>opportunity to catch up with old friends, meet new people <br>and network with peers in related industries, or simply to <br>put names to faces.<br><br>Open bar (beer, wine, soft drinks) and great food will<br>
be included. Be sure to bring your colleagues and friends <br>to join the party. Open to all, RSVP required.<br><br>Date: Thursday, 29th July, 2010<br>Time: 19:00 to 21:30pm<br>Venue: La Boheme, Shirogane<br>Map: <a href="http://www.boheme.jp/en/shirogane/home/location">http://www.boheme.jp/en/shirogane/home/location</a><br>
Cost: 3,000yen ICA members, 5,000yen non-members. <br>*Includes open bar (beer, wine, soft drinks) & great <br>quality food.<br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br>
<br>*** In Terrie's Take 572 -- Restaurant Listings Wars, we <br>discussed the changing of the guard for the vendors of <br>restaurant information in "eating-out obsessed" Japan. Even<br>as the industry moves from paper to online, yesterday's <br>
leading online players are being are now being challenged <br>by a new breed -- and interestingly a breed that are <br>returning some integrity back into the content being <br>published.<br><br>=> A reader responds:<br>
I think your article highlights the Second Law of <br>Thermodynamics: it goes something like this:<br>1. A system will continue to grow until its size and <br>complexity is no longer tenable.<br>2. A system will weaken over time and at some point no <br>
longer exist.<br>3. A system will go through radical change, cease to exist <br>in its current form, and morph into something quite <br>different.<br><br>So perhaps the key issue is NOT how successful can a <br>company become, but rather, how able is a company in <br>
adapting to change? Consider that if you owned a very <br>successful typewriter manufacturing company twenty five <br>years ago [Ed: As IBM used to do], then should you <br>focus your efforts on continuing to build a better <br>
typewriter? The answer is: only if your definition of <br>"typewriter" is wide enough to embrace computers.<br><br>Put another way, the right question to ask is: how can we <br>best repurpose the resources we have?<br>
<br>/...The TT Janitor.<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 9,020 members as of July 11th, 2010<br>(We purge our list regularly.)<br><br>+++ ABOUT US<br><br>STAFF<br>
Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br><br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>with the word 'help' in the subject or body (don't include<br>
the quotes), and you will get back a message with<br>instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br>
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online the business trends in Japan, each posting brings <br>you in-depth analysis of business, people and technology in<br>the world's second largest economy. <br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>
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