Order for Enforcement of the Consumption Tax Act

Where a final return, etc. stating a shortfall set forth in Article 45, paragraph (1), item (vii) of the Act has been submitted, the district director must, without delay, carry out the procedures for refund or appropriation under Article 53, paragraph (1) or (2) of the Act, except where there are grounds on which that shortfall is found to be excessive.

An order under the second sentence of Article 51, paragraph (3) of the Act must be made in writing stating the amount of the security to be provided.

Where appropriation of a refund under Article 53, paragraph (1) or (2) of the Act (including the interest on refund relating thereto; the same applies in the following paragraph) to unpaid national tax and expenses for the delinquent tax collection procedure is made, the appropriation is to be made in the order of the following items:

If there is consumption tax on taxable transfers, etc. of assets and specified taxable purchases for the taxable period relating to the interim payment that formed the basis for calculating that refund that is to be paid through the submission of an amended return or reassessment (excluding the interim payment), the appropriation is made to that consumption tax;

If, even after the appropriation under the preceding item, there is still an amount to be refunded and there is an unpaid interim payment prescribed in that item, the refund is appropriated to that unpaid interim payment; in this case, if there are unpaid interim payments with different statutory payment due dates (meaning the statutory payment due date prescribed in Article 2, item (viii) (Definitions) of the Act on General Rules for National Taxes; hereinafter in this Article through Article 70 referred to as the "statutory payment due date"), the refund is appropriated to those of the unpaid interim payments that are obtained by going back, starting from the one whose statutory payment due date is closest to the day of the refund and proceeding in order, until the amount to be refunded is reached;

If, even after the appropriation under the preceding two items, there is still an amount to be refunded, the refund is appropriated to other unpaid national tax and expenses for the delinquent tax collection procedure.

Where there are both a refund under Article 52, paragraph (1) of the Act (including the interest on refund relating thereto; the same applies hereinafter in this paragraph) relating to consumption tax on taxable transfers, etc. of assets and specified taxable purchases for the taxable period and a refund under Article 53, paragraph (1) or (2) of the Act, and appropriation of those refunds to the unpaid consumption tax on taxable transfers, etc. of assets and specified taxable purchases for the taxable period is made, the appropriation is to be made first from the refund specified in the relevant item, according to the category of cases listed in the following items:

in the case of appropriation to the consumption tax prescribed in Article 65, item (i): the refund under Article 52, paragraph (1) of the Act;

in the case of appropriation to the interim payment: the refund under Article 53, paragraph (1) or (2) of the Act.

The amount calculated as specified by Cabinet Order prescribed in Article 53, paragraph (2) of the Act is the amount remaining after deducting the amount set forth in item (ii) from the amount set forth in item (i):

the total amount of delinquent tax paid on the interim payment relating to the interim return prescribed in Article 53, paragraph (1) of the Act;

the total amount of delinquent tax calculated, under the provisions of laws concerning national taxes, for each interim payment obtained by successively going, in the order specified below, through that interim payment (excluding the amount of the portion appropriated by a refund under Article 53, paragraph (1) of the Act) until the amount set forth in Article 45, paragraph (1), item (iv) of the Act stated in the final return, etc. for the taxable period relating to that interim payment is reached (where there is consumption tax subject to the appropriation under Article 68, paragraph (1), item (i), the amount obtained by adding the amount of that consumption tax):

for those of the interim payments that have different statutory payment due dates, the one with the earlier statutory payment due date takes priority;

for those of the interim payments that have the same statutory payment due date but different dates of finalization, the one with the earlier date of finalization takes priority;

for those of the interim payments that have the same statutory payment due date and date of finalization but different dates of payment, the one with the earlier date of payment takes priority.

Where the amount of interest on refund is calculated for a refund under Article 53, paragraph (1) of the Act, Article 53, paragraph (3) of the Act is applied by treating as the interim payment to be refunded prescribed in that paragraph each interim payment obtained by successively going back, in the order specified below, through the interim payments relating to the interim return prescribed in paragraph (1) of that Article (excluding the amount of the portion appropriated by that refund) until the amount of that refund is reached (where appropriation under Article 68, paragraph (1), item (i) or (ii) is made by that refund, the amount obtained by deducting the amount of the refund so appropriated).

for those of the interim payments that have different statutory payment due dates, the one with the later statutory payment due date takes priority;

for those of the interim payments that have the same statutory payment due date but different dates of finalization, the one with the later date of finalization takes priority;

for those of the interim payments that have the same statutory payment due date and date of finalization but different dates of payment, the one with the later date of payment takes priority.

The amount calculated as specified by Cabinet Order prescribed in Article 55, paragraph (3) of the Act is the amount remaining after deducting the amount set forth in item (ii) from the amount set forth in item (i):

the total amount of delinquent tax paid on the interim payment relating to the interim return prescribed in Article 55, paragraph (1) or (2) of the Act (where, among that delinquent tax, there is any that has already become refundable under Article 53, paragraph (2) or Article 55, paragraph (3) of the Act, excluding the amount of the delinquent tax that has become refundable);

the total amount of delinquent tax calculated, under the provisions of laws concerning national taxes, for each interim payment obtained by successively going, in the order specified below, through that interim payment (excluding the amount of the portion appropriated by a refund under Article 53, paragraph (1) or Article 55, paragraph (1) or (2) of the Act) until the amount set forth in Article 45, paragraph (1), item (iv) of the Act relating to the determination (meaning a determination under Article 25 (Determination) of the Act on General Rules for National Taxes) or reassessment or similar decision (meaning the reassessment or similar decision prescribed in Article 55, paragraph (2) of the Act) that is the cause of that refund is reached (where there is consumption tax subject to the appropriation under Article 68, paragraph (1), item (i) as applied mutatis mutandis pursuant to paragraph (4), the amount obtained by adding the amount of that consumption tax):

for those of the interim payments that have different statutory payment due dates, the one with the earlier statutory payment due date takes priority;

for those of the interim payments that have the same statutory payment due date but different dates of finalization, the one with the earlier date of finalization takes priority;

for those of the interim payments that have the same statutory payment due date and date of finalization but different dates of payment, the one with the earlier date of payment takes priority.

The reason specified by Cabinet Order prescribed in Article 55, paragraph (4), item (ii), (a), (2) of the Act is the reason specified by Cabinet Order prescribed in Article 58, paragraph (5) (Interest on Refund) of the Act on General Rules for National Taxes.

Where the amount of interest on refund is calculated for a refund under Article 55, paragraph (1) or (2) of the Act, Article 55, paragraph (4) of the Act is applied by treating as the interim payment to be refunded prescribed in that paragraph each interim payment obtained by successively going back, in the order specified below, through the interim payments relating to the interim return prescribed in those provisions (where there is a portion that has already been made the basis for calculating the amount of interest on refund under Article 53, paragraph (3) of the Act, or a portion appropriated by a refund under Article 55, paragraph (1) or (2) of the Act, excluding those amounts; the same applies hereinafter in this paragraph) until the amount of that refund is reached (where appropriation under Article 68, paragraph (1), item (i) or (ii) as applied mutatis mutandis pursuant to the following paragraph is made by that refund, the amount obtained by deducting the amount of the refund so appropriated).

for those of the interim payments that have different statutory payment due dates, the one with the later statutory payment due date takes priority;

for those of the interim payments that have the same statutory payment due date but different dates of finalization, the one with the later date of finalization takes priority;

for those of the interim payments that have the same statutory payment due date and date of finalization but different dates of payment, the one with the later date of payment takes priority.

The provisions of Article 65 and Article 68 apply mutatis mutandis where appropriation to unpaid national tax and expenses for the delinquent tax collection procedure is made of a refund under Article 54, paragraph (1) of the Act (including interest on refund relating thereto) or a refund under Article 55, paragraphs (1) through (3) of the Act (including interest on refund relating thereto).