Tokyo, Aug. 19 (Jiji Press)–A study group of the industry ministry proposed Thursday that the ministry introduce measures to prevent multinational firms, including information technology giants, from evading taxation in Japan.
   

The proposal was included in an interim report on tax avoidance compiled at the group’s meeting the same day.
   

The report underscored the importance of taking steps to stop foreign firms, including IT mammoths Google LLC, Apple Inc., Facebook Inc. and Amazon.com Inc., from raising patent royalties they receive from their Japanese units to cut cooperate tax payments in the country, which currently regards patent and trademark royalties as loss.
   

Moreover, the group find it necessary to review a special rule exempting newly established firms from paying consumption tax for the first two years unless they log taxable sales.
   

Foreign-based firms can enjoy the tax exemption if they set up subsidiaries in Japan, the report pointed out.
   

Based on the report, the ministry will start drawing up concrete measures.