Bankruptcies Due to Unpaid Social Insurance and Taxes Reached 221 in FY2025, 2nd Highest Level. Almost All Cases Result in 'Bankruptcy', Highlighting the Difficulty of Restructuring After Delinquency

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According to Teikoku Databank, bankruptcies triggered by unpaid taxes and social insurance premiums hit 221 cases in FY2025, the 2nd highest in a decade. 97% ended in bankruptcy, showing the severe difficulty of recovery.

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According to Teikoku Databank, bankruptcies triggered by unpaid taxes and social insurance premiums hit 221 cases in FY2025, the 2nd highest in a decade. 97% ended in bankruptcy, showing the severe difficulty of recovery.

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Source: https://prtimes.jp/main/html/rd/p/000001309.000043465.html | Date: Date unavailable

Teikoku Databank investigated and analyzed corporate bankruptcies (bankruptcies due to delinquency of public dues and taxes) where companies went bankrupt after their assets were seized because they were unable to pay or continued to fall behind on various 'taxes (public taxes)' such as consumption tax and fixed asset tax, and 'social insurance premiums (public dues)' such as welfare pension insurance and health insurance. SUMMARY The number of 'public dues delinquency type' bankruptcies that occurred in FY2025 was 221. Although it decreased from the previous year, it remained at the second highest level in the past 10 years (the highest was 269 in FY2024). Almost all cases resulted in 'bankruptcy', highlighting the current situation where once a company falls behind on 'public dues', it becomes a major obstacle to subsequent management restructuring. Aggregation period: April 1, 2016 to March 31, 2025 Aggregation target: Bankruptcies through legal liquidation with liabilities of 10 million yen or more. Prior to FY2024, it includes newly discovered bankruptcy cases based on the latest information. Bankruptcies due to unpaid social insurance and taxes, 221 cases in FY2025 Corporate bankruptcies triggered by the delinquency of 'public dues' such as social insurance premiums and taxes ('public dues' delinquency bankruptcies, liabilities of 10 million yen or more) occurred in 221 cases in FY2025. Although it decreased by 48 cases (17.8%) from the previous year (269 cases), it remained at the second highest level in the past 10 years. Among these, looking at the type of bankruptcy, 97% (215 cases) of the 221 cases that occurred in FY2025 were 'bankruptcies'. Unlike rescheduling with financial institutions, 'delinquency of public dues' aimed at securing cash on hand results in the forced seizure of accounts receivable and business accounts. If a seizure occurs, loans from financial institutions and others lose the benefit of time, cash flow tends to deteriorate significan

Bankruptcies Due to Unpaid Social Insurance and Taxes Reached 221 in FY2025, 2nd Highest Level. Almost All Cases Result in 'Bankruptcy', Highlighting the Difficulty of Restructuring After Delinquency

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