Child allowance abuse in Japan

Japan’s DPJ (Democratic Party of Japan) system recently implemented a law providing parents with free money, based on the number of children they have – but some people are taking advantage of the system.

A man living in Japan has reportedly adopted 554 orphans from a Thai monastery, with the intention of claiming the cash benefits amounting up to ¥ 86,000,000, or over SGD 1.2million. The man, of Korean origin, and his Thai wife, had presented the supporting documents for all 554 of the children and tried to claim the annual child support payments.

The main trigger responsible for this case, however, is probably the major loophole in the drafted decree, since there was no mention of a ceiling to the amount that could be collected for each pair of parents.

What makes it worse is that the law extends to parents whose children do not live in Japan. The government claims that if the parents are still looking after, disciplining and financially supporting the children, they are eligible for the allowance. Although this might be fair in the sense that non-Japanese have to pay the same national insurance and taxes, this simply results in continued ambiguity, as the government had no supported reason for rejecting the applicant.

The news sparked off many a heated debate regarding where to draw the line when it comes to child allowances, as the government’s tight budget does not exactly allow spending such amounts of the taxpayers money. With regards to this case, however, it was pretty much settled when they found out that the couple’s sudden charitable move for adopting the children happened right after the government announced the new law. Needless to say, they did not receive their cash. All that’s left to wonder is the fate of the 554 orphans now.