Hello. Im sorry if my explanation is confusing but I am confused myself about this. I am japanese citizen but I expect to have a sale of stocks abroad this year and I am completely clueless on how to approach the tax implications.
The main problem is that my birth country laws and reality are so absolutely nothing compared to Japan's. My birth (3rd world) country has a "legal" reality, a "paperwork" reality, and a "real" reality in regards with assets, so let me summarize only the numbers (simulated):
-My father had a business and made it an unlisted stock-company. He passed away 6 years ago.
-First problem: inheritances in my country takes decades, very often between 20 and 50 years to complete. I could not get any valuation of anything by the deadline in japan so I didnt declare any inheritance tax. Only counted cash and 1 car and it was way below the basic exemption so I didnt fill anything.
-Now 6 years later, my share of my father's company stocks will be transferred to me by judge.
—The company was founded 40 years ago with 10 stocks of 10USD each, so 100 USD value at start (legal and paperwork value). The actual investment was 100k USD (real value).
—I will inherit just now, 5 stocks (50USD in paper).
—I got a buyer for those stocks. The company was estimated by a 3rd party as worth 300kUSD, so I having half the stocks (50USD in paper) will have 150kUSD in market value (real value)
—I dont care about that company and want to cut ties with my birth country, so I will sell those cheap, say 100kUSD (2/3 of its current market value)
—The sale contract will be for transfer of 5 stocks, worth 50USD (legal value) by an exchange of 1000 USD (paperwork value), but in reality the buyer will transfer me 100k USD (real cash money). This is perfectly common there and is what both parties's accountants and scrivener and BANK suggest (I know its crazy but thats "normal").
So my problem will be bringing those 100k USD to japan when there is no paperwork of its origin by that value. Even worse, my father "acquired" them by 50 USD, I technically acquired them also by 50USD, but sold them by "1000 USD" and got 100k USD.
It sucks that by what I understand of japanese taxes, I will probably be taxed like 20% over the difference between 100.000 and 50, even when selling at a huge loss. But there is no document I can produce other than the inheritance transfer by 50USD and the sell by 1000 USD.
How much I am screwed? Should I better not bring that money to japan at all and use it locally or with a debit card? I want to declare everything and have the money here to invest, but I cant produce official proof of origin and dont want to be taken as a drug dealer or something haha.
by MikiTony