RESTRICTED
WORLD TRADE G/SCM/Q2/JPN/2
3October 1996
ORGANIZATION(96-3983)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from CANADA Regarding theNew
andFullNotification ofJAPAN1
Thefollowing communication, dated 20September 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
1. Thenotification indicates thatbudgeted grants forthesecurity ofmines amounted tosome
¥4,290 million. Could Japan provide further information onwhatismeant by“security formines ”;
i.e.whattypes ofactivities doesthisprogramme encompass? CanJapan clarify whatproportion of
thebudgeted funding hasactually beendisbursed?
2. With respect tofunding forpromoting research anddevelopment forfuture ships, canJapan
advise astothenature oftheactivities funded; i.e.hasfunding beenprovided for,fundamental research,
industrial research, orpre-competitive development activity, orallthree? Could Japan indicate, where
relevant, whatproportion offunding hasbeenprovided forthese types ofresearch?
3. Regarding assistance under theprogramme entitled, “TaxMeasures Tostrengthen the
Management ofSmall andMedium-Sized corporations ”,canJapan advise howsmall andmedium sized
corporations aredefined? Arethetaxmeasures (i.e.taxcredit anddeferral) applicable onlytothe
acquisition ofcapital equipment? Would thesamedefinition apply totheprogramme entitled: “Special
Depreciation OnMachinery (p.17ofdocument G/SCM/N/3/JPN/Rev.1)?
4. Forthose programmes where thesubsidy isprovided intheform ofataxdeferral,
i.e.programmes described onpages 11-20 ofdocument G/SCM/N/3/JPN/Rev.1, canJapan clarify
thesortofassetonwhich income isbeing deferred; i.e.income fromtheuseofanasset, saleofasset
etc.? Where taxdeferral doesnotmean some form ofaccelerated capital costallowance, canJapan
indicate inwhatyeartheincome willbeincluded intotaxable income?
5. Thenotification ofJapan doesnotappear tomake anyparticular reference toassistance provided
totheautomotive orcivilaircraft sectors. Does Japan offer assistance within themeaning ofthe
Subsidies Agreement tothese sectors?
1G/SCM/N/3/JPN/Rev.1