* * * * * * * * * 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, June 24, 2012, Issue No. 667<br>
<br>+++ INDEX<br><br>- What's New -- Too Many or Too Few Lawyers?<br>- News -- Lab creates liver and eyeball organ parts<br>- Upcoming Events<br>- Corrections/Feedback<br>- Japan Business Q&A -- Taxes When Leaving Japan<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>
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e-mail us at <a href="mailto:info@pbxl.jp">info@pbxl.jp</a> or call us at 03-4550-2557<br><br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br>+++ WHAT'S NEW<br><br>Although there are lots of good lawyer jokes, they are told<br>
less often in Japan for the simple reason that there is a <br>remarkable under-supply of them here as compared to other <br>advanced economies. To get some idea, there is one lawyer <br>per 250 people in the USA, one per 390 in New Zealand, 590 <br>
in Germany, 1,000 in Hong Kong, 4,119 in Japan, and one for<br>every 5,000 people in China. <br><br>It's no surprise that the USA comes first, due to the fact <br>that the US legal system provides for the concept of <br>
punitive damages and thus there is considerable financial <br>incentive to sue and on the other hand to defend law suits.<br>We thank our lucky stars that lottery ticket litigation is <br>largely a US-centric phenomenon. In Japan, to get damages, <br>
you generally need to show actual invoices and other <br>documentation showing the real financial impact incurred. <br>Thus you seldom hear of massive awards in the millions of <br>dollars range.<br><br>Why does Japan have so few lawyers? <br>
<br>Historically Japan has had a very top-down legal culture<br>and the populace was trained to think that court action was<br>too hard. Thus people were compelled to either put up with <br>the situation, create change through peer group pressure, <br>
or to negotiate non-judicial compromises -- all meaning <br>that the demand for lawyers has traditionally been low. <br>Indeed, before the government pushed through legislation in <br>2004 requiring a substantial increase in law schools and <br>
people passing the bar exam, there were only 1,000 people a<br>year passing the exam -- out of a massive 50,000-60,000<br>people who actually sat it. Then, of that 2-3% pass-rate, <br>only 500 a year were accepted into a traineeship with the <br>
Supreme Court's Legal Research and Training Institute. This<br>traineeship was required in order to get a law licence and <br>was the choke point which the legal community used to <br>ensure there were less than 18,000 lawyers for the whole <br>
nation for many decades.<br><br>[Continued below...]<br><br>--------- NAGAMINE & MISHIMA For Success in Japan ---------<br><br>Recently, there have been significant revisions of the<br>Consumption Tax Law. Not only tax professionals, but also<br>
company accountants should be aware of what this means for<br>them.<br><br>We will present a seminar to help foreign accounting staff<br>better understand Consumption Tax. We explain the <br>Consumption Tax Law in plain English, using practical <br>
examples and case studies.<br><br>Date: Thu. 12th July, 2012<br>Time: 1:30pm ? 2:30pm<br>Venue: Nagamine Mishima Accounting Office<br><a href="http://www.nagamine-mishima.com/profile/access?lang=en">http://www.nagamine-mishima.com/profile/access?lang=en</a><br>
Seminar Price: Free<br>Language: English<br><br>To reserve, email <a href="mailto:info@nagamine-mishima.com">info@nagamine-mishima.com</a> before<br>30th June, 2012.<br>-----------------------------------------------------------<br>
<br>[...Article continues]<br><br>The increase in bankruptcies, M&As, and companies cutting <br>staff and corners meant that there was a surge in court <br>actions at the end of the 1990's and early 2000's, to the <br>
extent that the government asked the Ministry of Internal <br>Affairs to ensure that the number of lawyers passing the <br>bar would reach at least 3,000 people a year by 2010. And <br>so it was that in 2004 legislation was passed to establish <br>
74 US-style law schools, and to increase the bar pass rate <br>to 40%-50%. Last year, around 2,063 people passed the exam.<br><br>As mentioned, the Japanese legal profession has a vested <br>interest in controlling the number of lawyers practicing <br>
here, obviously wanting to protect jobs and income levels <br>(most Japanese lawyers come at a starting rate of at least <br>JPY30,000/hour). They put up a spirited fight to stop the <br>2004 legislation, and even today never lose a chance to <br>
bang on about how the surging number of lawyers, which as <br>of last year was 30,516, is making things tough for <br>everyone. Surprisingly though, recently their voices were <br>joined by the Ministry of Internal Affairs, which also said <br>
that there are now too many lawyers.<br><br>On hearing how things are getting tougher for lawyers, our <br>first reaction was to say, "Welcome to the real world". If <br>the increasing number of lawyers leads to price competition<br>
and better service to clients, then the number of new <br>lawyers should continue apace. However, if there really is <br>a glut in lawyers, then the reason is probably the same as<br>for doctors -- those available are misallocated.<br>
<br>There is apparently about one lawyer per 1,000 people in <br>Tokyo, which is where most people passing the bar tend to <br>cluster. While out in more remote parts of the country, <br>such as Aomori, the number quickly drops to less than one <br>
per 31,000 people. Further, the sector of the community <br>really needing more legal services is businesses dealing <br>with foreign counterparties in the course of trade, <br>litigation, and M&A. This has led to a high demand for <br>
bilinguals -- who are in short supply since the notoriously<br>tough bar exam ensures that most students are focused on <br>their law books, not on a second language. <br><br>Domestically too, we believe the need for more lawyers is <br>
going to increase. It's pretty clear that once the <br>government ceases the loans moratorium on small companies <br>next year, that there will be a huge spike in bankruptcies <br>and local M&A again -- which will need professionals to <br>
service. At the same time, pressure from foreign <br>shareholders to have Japan improve its corporate governance<br>is leading to a surge of lawyers being appointed to <br>corporate Boards as external directors.<br><br>Lastly, it used to be that the main goal for an aspiring <br>
law student was to become a prosecutor or judge, and that <br>anything else wasn't noble enough. This traditionally was <br>the only mindset strong enough to see a student through the<br>years of study and exam disappointment. But as many other <br>
countries have already demonstrated, getting qualified as a<br>lawyer does not mean the person has to stay one for the <br>rest of their lives. Rather, they can use the legal <br>training to sharpen their minds and instead move on to <br>
become successful businesspeople and politicians. Osaka's<br>Hashimoto is a good case in point. <br><br>Our take is that the government should not cut back on the <br>number of lawyers graduating from the 73 law schools (one<br>
closed down its law department). Instead, it should beware<br>of anyone saying there are too many lawyers, because most<br>likely they are one of the elite few looking to protect <br>their turf. <br><br><br>...The information janitors/<br>
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-----------------------------------------------------------<br><br>+++ NEWS<br><br>- FDI into Japan target to double<br>- Labs create liver and eyeball organ parts<br>- Bain takes big leap into TV shopping<br>- 75% of Taiwanese feel close to Japan<br>
- Joi Ito appointed to NY Times board<br>- Yahoo Japan, Askul j/v on logistics<br><br><br><br>=> FDI into Japan target to double<br><br>A Cabinet Office foreign direct investment (FDI) panel has <br>said that it wants to double FDI into Japan from the <br>
current JPY17.5trn in 2011 to JPY35trn by 2020. The panel <br>recommends focusing on energy and medicine, enticing <br>foreign investors with tax exemptions and other <br>preferential treatment. In particular the government wants <br>
foreign investors to set up in disaster-hit areas. One <br>interesting fact, the panel said that there were 750,000 <br>people employed by foreign firms -- about 1.25% of the work<br>force. ***Ed: While it's hard to imagine most companies <br>
being interested in Japan due to its high taxes, high yen, <br>and over-regulation, for those firms looking for excellent <br>R&D and production and who have sufficient profit margins, <br>such as the cosmetics industry, Japan is still a viable <br>
place to set up in.** (Source: TT commentary from <br><a href="http://japantimes.co.jp">japantimes.co.jp</a>, Jun 23, 2012)<br><br><a href="http://bit.ly/KHdXgT">http://bit.ly/KHdXgT</a><br><br>=> Labs create liver and eyeball organ parts<br>
<br>In what sounds like science fiction, scientists at Yokohama<br>City University have succeeded in creating a "liver bud", a<br>first step to a full working liver, from human skin-derived<br>IPS cells. The liver fragment was implanted into a mouse <br>
and functioned like a natural organ. Also this week, Kobe's<br>RIKEN Center for Developmental Biology announced that it <br>has created a precursor to a human eyeball, from retinal<br>stem cells. Both groups are hoping to grow and harvest <br>
human organs for transplants. (Source: TT commentary from <br><a href="http://japandailypress.com">japandailypress.com</a>, Jun 23, 2012)<br><br><a href="http://bit.ly/MqZQsQ">http://bit.ly/MqZQsQ</a><br><br>=> Bain takes big leap into TV shopping<br>
<br>Apart from money, one thing Bain Capital Japan doesn't lack<br>is guts. The company has announced that it will be buying <br>50% of the Jupiter TV shopping channel from Sumitomo, for <br>approximately JPY100bn (US$1.3bn). This investment comes on<br>
top of Bain's buyout of Skylark restaurants from Nomura and<br>Domino's Pizza Japan from Duskin and Ernie Higa. Sumitomo <br>and Bain will apparently use the partnership to set up <br>similar TV shopping ventures in China and elsewhere in <br>
Asia. (Source: TT commentary from <a href="http://chicagotribune.com">chicagotribune.com</a>, Jun <br>22, 2012)<br><br><a href="http://trib.in/MgLWep">http://trib.in/MgLWep</a><br><br>=> 75% of Taiwanese feel close to Japan<br>
<br>Japan's diplomatic channel in Taiwan, the Interchange <br>Association, Japan, has released the results of a <br>1,000-person survey which shows that Japan is still very <br>favorably regarded by Taiwanese. Amongst the results were:<br>
1. Favorite country/region -- 41% Japan, 8% China, 8% USA, <br>6% EU, 37% no opinion.<br>2. Feel a close connection -- 75% Japan<br>3. Countries Taiwan needs to be close to -- 39% China, 29% <br>Japan, 15% USA, 3% EU<br>4. Desirable travel destinations -- 39% Japan, 32% EU, 14% <br>
China, 5% USA, 4% SEAsia, 3% South Korea<br>5. Reasons not to travel -- 50% radiation fears, 28% strong<br>yen, 12% earthquake fears. (Source: TT commentary from <br><a href="http://taipeitimes.com">taipeitimes.com</a>, Jun 22, 2012)<br>
<br><a href="http://bit.ly/KGbH9A">http://bit.ly/KGbH9A</a><br><br>=> Joi Ito appointed to NY Times board<br><br>A big congratulations to Joi Ito, who was a founding <br>partner in Digital Garage here in Tokyo. Ito was just <br>
appointed an external director for the board of The New <br>York Times, in addition to his existing position as <br>director of MIT's Media Lab. (Source: TT commentary from <br><a href="http://e.nikkei.com">e.nikkei.com</a>, Jun 23, 2012)<br>
<br><a href="http://e.nikkei.com/e/fr/tnks/Nni20120622D2206N02.htm">http://e.nikkei.com/e/fr/tnks/Nni20120622D2206N02.htm</a><br><br>=> Yahoo Japan, Askul j/v on logistics<br><br>One important way that Amazon.com outdoes its competitors <br>
is in how it can combine individual orders into a single <br>package -- reducing shipping costs to the consumer and the <br>need to receive multiple mailings. This has required a <br>huge warehousing investment by Amazon.com, but over time <br>
the business model has paid off in user loyalty. Now, <br>Yahoo Japan and office supplies company Askul have decided<br>to form a joint logistics venture to compete with <br>Amazon.com. Initially both firms will use Askul's existing <br>
6 logistics centers, but plan to spend JPY485bn to build <br>another 7 facilities, which will help them triple their <br>shipping capability from the current 410,000 items daily <br>to 1.24m a day. (Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, <br>
Jun 23, 2012)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20120623D2206A08.htm">http://e.nikkei.com/e/ac/tnks/Nni20120623D2206A08.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>+++ 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<br><br>BiOS is urgently looking for a Desktop Engineer to work at <br>
our client's office. The candidate will be responsible for <br>supporting and managing end-user incidents and other issues<br>related to IT infrastructure. The candidate will also <br>provide technical support for desktop/laptop PCs, printers,<br>
monitors, server/network equipment, and other hardware in <br>the office environment as well as manage IT hardware <br>assets. IT asset management includes installing, moving, <br>adding, changing, disposing, and removing IT devices and <br>
machines.<br><br>Due to the technical nature and demanding work environment,<br>this position is suitable for someone with 2 years of <br>helpdesk or user support experience. In addition, since <br>this role requires direct coordination with both regional <br>
and global IT teams, fluent Japanese and business English <br>will be required.<br><br>Remuneration is JPY3M – JPY3.6M depending on your <br>experience and skill level.<br><br>** POSITIONS VACANT<br><br>- Desktop Engineer, global IT company, JPY 3.6M – JPY4.2M<br>
- Data Center Operator, DC Service Co., JPY3M – JPY3.6M<br>- Data Center Engineer, DC Service Co., JPY4M – JPY6M<br>- Personal Assistant, Investment Firm, JPY3.6M – JPY5M<br>- Data Center Engineer, Intnl bank, JPY4.8M – JPY5.4M<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:jason.kisling@biosjp.com">jason.kisling@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:jason.kisling@biosjp.com">jason.kisling@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>----- LINC Media Makes Japanese Websites on a Budget ------<br>
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<br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>---------------- Start a Company in Japan -----------------<br><br>Entrepreneur's Handbook Seminar 29th of September, 2012<br><br>If you have been considering setting up your own company,<br>
find out what it takes to make it successful. Terrie Lloyd,<br>founder of over 17 start-up companies in Japan, will be <br>giving an English-language seminar and Q&A on starting up <br>a company in Japan.<br><br>This is an ideal opportunity to find out what is involved,<br>
and to ask specific questions that are not normally <br>answered in business books. All materials are in English <br>and are Japan-focused.<br><br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar">http://www.japaninc.com/entrepreneur_handbook_seminar</a><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>=> No feedback this week.<br><br>***------------------------****-------------------------***<br>
<br>----------- Experienced Biz Dev/Interpreter --------------<br><br>Ex-investment banker, venture capitalist and current biz<br>dev expert seeks part-time work as interpreter and market<br>development consultant. Knowledgeable in finance, web,<br>
technology, and media sectors, with additional experience<br>in other areas. Good at analyzing problems, creating<br>strategies to get into target firms, and just getting the<br>job done. Native Japanese, high-level English, competent<br>
presentation skills.<br><br>Based in Tokyo, available for immediate assignment, OK <br>with short-term projects. Contacting me for a preliminary<br>meeting and quotation for services is free.<br><br>For more information, contact: <a href="mailto:bigred461696@gmail.com">bigred461696@gmail.com</a><br>
-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ JAPAN BUSINESS Q&A<br><br>=> Question<br><br>I am planning on leaving the country in the next 6-12 months.<br>
Do I have to pay national and local taxes if I leave? If I<br>don't, what happens?<br><br>*** Answer<br><br>Yes, you have to pay both national and local taxes when you<br>leave. If you don’t, you will be subject to a penalty for<br>
failure to pay, as well as interest on the unpaid amount.<br><br>For national taxes, you have to file a tax return and pay tax<br>by March 15 of the following year of your departure. If you<br>are not in the country such that you can file your taxes on<br>
your own, it is common to have a tax attorney take care of the<br>filings on your behalf. In this case, you should inform your<br>local tax office before your departure from the country that<br>this individual will be filing on your behalf. If you don’t<br>
have a tax attorney or prefer to not use one, you should finish<br>your tax returns and payments by yourself before you leave.<br><br>For local taxes, continue reading here:<br><a href="http://www.nagamine-mishima.com/archives/2906?lang=en">http://www.nagamine-mishima.com/archives/2906?lang=en</a><br>
------------------------------------------------------------<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 7,979 members as of June 24, 2012<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><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>Contact <a href="mailto:ads@japaninc.com">ads@japaninc.com</a>.<br>
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or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2012 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling<br>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>Japan available.<br>-----------------------------------------------------------<br>
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