Japan targets its expat tax-dodgers with ‘big apartments and yachts’ in Hong Kong

The Japanese government is planning to target the assets of expatriate citizens squirrelling wealth abroad - their "big apartments and yachts in Hong Kong", as one expert put it - as they endeavour to avoid taxes at home.

Japan's finance ministry has announced that it will draw up legislation to impose income tax on latent profits from shares and other securities that have been earned by Japanese nationals who have moved overseas to avoid such taxes.

A tax of 20 per cent is imposed on capital gains earned in Japan, while certain jurisdictions - including Singapore and Switzerland - have no such tax.

Several places in East Asia are popular destinations among Japanese attempting to flee punitively high tax rates at home.

Along with Hong Kong, Bangkok and Manila are also favoured.

The ministry's Tax Commission is considering imposing the new levy on people with assets of 100 million yen (HK$6.79 million) or more, with the details of the system to be included in the government's proposals for sweeping reforms to the domestic tax system.