TAX NEWS - 2010

Japan Bank Tax: Japanese PM sees many alternatives to bank tax

Japan's new prime minister has told German Chancellor Angela Merkel that he believes countries have a variety of alternatives to a bank tax.

As G20 countries seek to ensure that taxpayers aren't left holding the bill for future bank bailouts, Japanese Prime Minister Naoto Kan told Ms. Merkel that Japan already has deposit insurance, meaning banks there are sharing in the cost of safeguarding the system, according to Japanese government spokesman Kazuo Kodama.

There are various policy alternatives to a bank tax, and countries should be able to choose them based on their own unique circumstances, Mr. Kodama suggested in a press briefing with reporters in Toronto on Saturday evening.

The meeting between Mr. Kan and Ms. Merkel took place Friday. At that time, Mr. Kan's officials said they were unauthorized to say whether the new Prime Minister was for or against a bank tax.