[16471]
August 26, 2003
TO: INTERNATIONAL COMMITTEE No. 56-03
TAX COMMITTEE No. 54-03
RE: CONFERENCE CALL AUGUST 28TH TO DISCUSS JAPANESE TAX ISSUES
We understand that Japanese tax authorities may be proposing to implement a tax on
foreign currency gains realized on redemptions of offshore funds. This tax would be imposed
at a 26% rate and would require filing of an income tax return by the Japanese shareholder.
This issue is in addition to the earlier issues we have been trying to address with the Japanese
authorities, and through the U.S. Treasury, namely the repeal of the balance collection method
for calculating Japanese withholding taxes, and the possible application of a 26% tax rate on
fund redemptions.1
There will be a conference call August 28th at 2:00 pm (Eastern) to discuss current tax
developments in Japan (the dial-in number is 888-769-8711 and the passcode is “Japan”). If you
plan to participate in the call, please complete the attached form and fax it to Ezella Wynn at
(202) 326-5841, or email the information to her at ewynn@ici.org.
David Orlin
Assistant Counsel
Attachment (in .pdf format)
1 See Institute Memorandum to International Members, No. 10-03, and Tax Members, No. 20-03, (No. 15806), dated
March 25, 2003.