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This is a translation of a Yomiuri On-Line article posted on March 24, 2005.

A religious corporation filed a lawsuit in the Nagoya district court arguing that Buddhist memorial services for pets are the equivalent of a religious act and fees for those services should not be taxed. Chief Justice Kato dismissed the lawsuit on the 24th stating, “It is the equivalent of a profit-making enterprise that must be taxed.”

This is the first judicial decision to rule that the taxation of fees for pet memorial services by a religious corporation is appropriate. The plaintiff is planning to appeal.

The religious corporation “Jimyouin” (Head Priest Enmyou Watanabe) in Kusagai City, Aichi Prefecture filed the lawsuit. It named the superintendent of the Komaki Tax Office in Aichi Prefecture as defendant and is requesting the repeal of tax penalties.

According to the judgment, as pet memorial services, from around 1984, Jimyouin performed sutra readings and cremations for pets such as dogs and cats. Jimyouin accepted 8000 yen ($75.22) to 50,000 yen ($470.10) “offerings” which it did not declare as income, because, “It is the same religious activity as memorial services for people.”

In response to this, the Komaki Tax Office is taxing Jimyouin as a profit-making enterprise approximately 6.7 million yen ($62,922.61) for the 5 year period ending March, 2001.

At trial Jimyouin argued, “There is no rational reason for pet memorial services fees to be subject to taxation.” However, Chief Justice Kato decided that, “With actions such as preparing a price list in advance, you resemble the business practices of pet morticians. It is the equivalent of a profit-making enterprise that must be taxed.”

This entry was posted on Thursday, March 24th, 2005 at 5:46 pm and is filed under News, Japan, Translation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.