Tax Changes: Japanese Bureaucrats and Increase Focus

tax changes: In the land of the original zaibatsu industrial groups, companies starting this month are able to spin off businesses tax-free, under new rules, according to The Japan Times. The change follows the Ministry of Economy Trade and Industry's removal of taxes last year on restricted stock a form of management compensation tied to a company's long-term performance. While U.S. politicians grapple with partisan rancor, Japanese bureaucrats at a ministry once renowned for overseeing the nation's industrial policy have been rolling out tax changes that might have flown under the radar of global investors. The tax measures are part of a broader initiative by Prime Minister Shinzo Abe's administration to increase focus on returns to shareholders. Both spinoffs and stock-based pay have been less common in Japan than other major markets. They're music to the ears of Rosenwald, who heads the 3.1 billion hedge fund Dalton Investments in California. (news.financializer.com). As reported in the news.