A recent sample survey conducted by the Immigration Services Agency of Japan has shed light on a concerning issue: approximately 10% of permanent residents in the country have been found to have neglected their tax and social insurance obligations. This revelation comes amid discussions in the Diet regarding a proposed bill that could potentially revoke residence permits of permanent residents who intentionally evade tax and social insurance payments.
The immigration agency disclosed this data for the first time during a session of the House of Representatives’ Committee on Judicial Affairs, following criticisms from opposition parties regarding the lack of statistical evidence supporting the need for revising laws pertaining to permanent residents’ obligations.
The proposed amendment not only aims to address tax evasion but also seeks to overhaul the current Technical Intern Training Program, replacing it with a new system designed to accommodate unskilled foreign workers in sectors experiencing labor shortages. Anticipating a rise in the number of individuals seeking permanent residency, the proposal also includes provisions for stricter eligibility criteria to deter individuals from shirking their public responsibilities.
As of December 2023, Japan had approximately 890,000 permanent residents, with the tax and insurance payment status of many remaining unknown. However, based on examination of permanent residence applications, the agency reported that out of 1,825 cases reviewed between January and June 2023, 235 applicants, equivalent to 12.8%, were found to have defaulted on payments. These cases included nonpayment of resident tax, national health insurance premiums, national pension premiums, and other instances.
In response to the proposed bill, the largest opposition party, the Constitutional Democratic Party of Japan (CDP), has presented a counterproposal to the House of Representatives. Their proposal suggests that “Hello Work” employment centers and government-approved organizations should oversee the recruitment and hiring processes for foreign workers. During a meeting of the judicial affairs committee on May 8, Takeshi Shina, a lower house member of the CDP, highlighted that their counterproposal does not advocate for stricter requirements for permanent residents. He cautioned against hastily revoking permanent residence permits without thorough deliberation, emphasizing the importance of Japan remaining an attractive destination for foreign workers.
