Five of the firm's lawyers, namely Kazuhiro Kanamaru, Akiko Sueoka, Hiroyuki Kurihara, Yoshiko Yamakawa and Takumi Shatari, and one of the firm's licensed tax accountants, namely Yuko Maruyama, represented a client in a tax dispute in which the client filed a lawsuit with the Tokyo District Court seeking the rescission of a corporate tax disposition against the client. In July 2023, the court rendered a judgment in favor of the taxpayer (our client), ordering the rescission of the disposition for taxation in full, and the judgment is now final, since the government, who was the defendant in the case, did not file an appeal against the judgment.

The point in dispute in this case was the fair value of the business of the client's subsidiary, which was transferred by it to its affiliate through an absorption-type company split (kyushu bunkatsu) conducted as a non-qualified company split (hi-tekikaku bunkatsu) for tax purposes.

The tax authority that made the disposition determined the fair value of the subsidiary's business based on an evaluation conducted at the time of the company split and issued the disposition on the grounds that the subsidiary had unreported capital gains amounting to approximately 600 million yen.

Conversely, the court fully accepted the client's argument that the amount determined by the tax authority based on the above evaluation was not a fair value and rescinded the disposition, ruling that the subsidiary did not have any unreported capital gains at all.