About the TKC National Federation

TKC National Federation
Takashi Sakamoto

The TKC National Federation ("TKCNF") is the largest group of certified public tax accountants in Japan; it aspires to achieve just taxation and contribute to the ongoing prosperity of its clients.

Living up to society's expectations

The Certified Public Tax Accountant Act (Zeirishi Act) stipulates the mission of certified public tax accountants (CPTAs) in its Article 1:
"The mission of Zeirishi, as experts in matters of taxation, shall be to strive from an independent and fair standpoint, in accordance with the principles of the self-assessment system, to prove themselves worthy of the trust of taxpayers and ensure the fulfillment of the tax liabilities stipulated in laws and ordinances concerned with taxes."

Bearing this mission, TKCNF has been actively working on such tasks as (1) monthly field auditing to ensure prompt and appropriate monthly closing of accounts by clients, (2) support for the improvement and succession of management at small and mediumsized enterprises (SMEs), (3) attachment of documents, etc., prescribed in Item 1 Article 33-2 of the Public Tax Accountant Act, and (4) electronic filing of national and local taxes, in an aim to support SMEs for their appropriate tax filing and management improvements.

As the experts in matters of taxation

To "Realize tax justice", the first objective of business of TKCNF, it is necessary to put in place a taxation system with more fairness and equality, and ensure that CPTAs fulfill their services pursuant to Article 1 of the Certified Public Tax Accountant Act, the basis of which is the principle of no taxation outside of the law. It is nothing more than the "attachment of documents" pursuant to Article 33-2 of the Certified Public Tax Accountant Act, which embodies the mission given to CPTAs.

The attachment of documents is a system in which CPTAs the experts in matters of taxation, clarify the "items they have calculated, organized, or for which they have been consulted" and attach the documents that "make the statement about the appropriateness of the tax returns", in their preparation of tax returns (tax documents). This is the authority given only to CPTAs, the experts in taxation. The attachment of tax audit re-ports serves to enhance the reliability of financial statements and tax returns, and to obtain a positive reputation from society including tax authorities, financial institutions, and business partners.

It is our duty to help CPTAs fulfill their mission through complete execution of the attachment of tax audit reports and to enhance their quality.

As the experts in matters of accounting

The history of legal provisions about commercial books in the Commercial Code, the basis of all commercial laws, tells us that the essential purposes of maintaining accounting records and preparing financial statements are to "enable the company managers to achieve sound management of the company by preparing the report by themselves" (strengthen the company through accounting) and to "enable commercial books to serve as evidence" (ensure the reliability of accounting books and financial statements). In other words, the very reason that a company must have its accounting system is to enable its managers to engage in management that makes the company become even stronger for its survival.

Article 19, paragraph 2 of the Commercial Code of Japan makes it mandatory to prepare commercial books in a timely and accurate manner. So does Article 432 of the Companies Act, for stock companies to prepare accounting books in a timely and accurate manner.

However, the effective use of commercial and accounting books are currently confined to the field of taxation, and not for management.

It is our belief that the effective utilization for management of the "books" —the shared infrastructure among Japanese company managers—would help strengthen the management capabilities of Japanese SMEs and make all managers take one step forward in their sound management.

We, the accountants of TKC, have the strengths of (1) resolutely conducting monthly field auditing at our clients locations, (2) using accounting software that helps to prepare accurate books, financial statements, and tax returns, and (3) giving advice about management from the viewpoint of "strengthening the company through accounting."

Leveraging these strengths, we are committed to deepening our relationships with administrative agencies, organizations for supporting SMEs, as well as financial institutions, and to engaging in services aimed to enable TKC accountants to gain trust from the corporate managers of SMEs as the closest and most concerned people with whom they can consult.