Local Tax Act

In a case that falls under any of the following items, the person who committed the violation is to be punished by imprisonment for not more than one year or a fine of not more than 500,000 yen:

in the case referred to in Article 71-40, paragraph (6), where a person fails to answer a question put by a prefectural tax collection official, conducted in the same manner as under the provisions of Article 141 of the National Tax Collection Act, or makes a false statement;

in the case referred to in Article 71-40, paragraph (6), where a person refuses, obstructs, or evades an inspection by a prefectural tax collection official, conducted in the same manner as under the provisions of Article 141 of the National Tax Collection Act, of books and documents (meaning the books and documents prescribed in that Article; the same applies in the following item) or other articles;

in the case referred to in Article 71-40, paragraph (6), where a person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official, made in the same manner as under the provisions of Article 141 of the National Tax Collection Act, for the presentation or submission of articles, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in the preceding paragraph in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in that paragraph is to be imposed on that corporation or individual.

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

A person who, in the case referred to in Article 71-40, paragraph (6), makes a false statement on matters to be stated to the prefectural governor in the same manner as under the provisions of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis pursuant to Article 109, paragraph (4) of that Act) is punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.

A prefecture is to grant to the municipalities within that prefecture (including special wards; the same applies hereinafter in this Article), as provided by Cabinet Order, an amount equivalent to three-fifths of the amount obtained by multiplying the amount equivalent to the dividend levy amount remitted to that prefecture by the rate specified by Cabinet Order, apportioned by the amount calculated, as provided by Cabinet Order, on the basis of the amount of individual prefectural inhabitant tax relating to the municipality concerned.

The amount of individual prefectural inhabitant tax relating to the municipality referred to in the preceding paragraph is to be calculated as provided by Order of the Ministry of Internal Affairs and Communications.

The tax base of the share transfer income levy is the amount of capital gains from the transfer of specified shares, etc.

The tax rate of the share transfer income levy is five percent.

The share transfer income levy must be collected by the method of special collection.

In the case of collecting the share transfer income levy by the method of special collection, a financial instruments business operator, etc. prescribed in Article 37-11-3, paragraph (3), item (i) of the Act on Special Measures Concerning Taxation with which a withholding-option account has been opened, and which pays consideration, etc. for the transfer of specified shares, etc. to an individual who has a domicile in the prefecture as of January 1 of the year that includes the day on which the individual is to receive payment of that consideration, etc. for the transfer of specified shares, etc., must be designated as a special collection agent by the Prefectural Ordinance of that prefecture and made to collect the levy.

The special collection agent referred to in the preceding paragraph is obligated to collect the share transfer income levy when paying consideration, etc. for the transfer of specified shares, etc., and by January 10 of the year following the year that includes the date of that collection (or, in a case specified by Cabinet Order, the date specified by Cabinet Order), to submit, in the form specified by Order of the Ministry of Internal Affairs and Communications, a remittance return (hereinafter in this Subsection referred to as a "remittance return") stating the amount of the tax base and the tax amount of the share transfer income levy to be collected and other necessary particulars, to the governor of the prefecture in which the individual receiving payment of that consideration, etc. for the transfer of specified shares, etc. had his or her domicile as of January 1 of the year that includes the day on which that individual is to receive payment of that consideration, etc., and to remit the remittance to that prefecture. In this case, a statement specified by Order of the Ministry of Internal Affairs and Communications must be attached to the remittance return to be submitted to the prefectural governor.

The special collection agent referred to in paragraph (1) must, in a case prescribed in Article 37-11-4, paragraph (3) of the Act on Special Measures Concerning Taxation, each time, refund the share transfer income levy equivalent to the amount calculated by multiplying the amount of the shortfall prescribed in that paragraph or the amount of specified expenses prescribed in that paragraph (where the amount of specified expenses exceeds the cumulative income amount in a withholding account prescribed in paragraph (2) of that Article pertaining to the last covered transfer, etc. prescribed in that paragraph made in the withholding-option account during that year, the amount after deducting the excess) by five percent.

The necessary particulars concerning the application of the provisions of the preceding three paragraphs are specified by Cabinet Order.

When a remittance return under paragraph (2) of the preceding Article has been submitted, if the amount of the tax base or the tax amount relating to the remittance return differs from what the prefectural governor has found through investigation, the governor makes a reassessment of it.

If a special collection agent has not submitted a remittance return, the prefectural governor determines, through investigation, the amount of the tax base and the tax amount for which a remittance return should be filed.

If the prefectural governor discovers through investigation that the amount of the tax base or the tax amount reassessed or determined pursuant to the provisions of the preceding two paragraphs or this paragraph is excessive or insufficient, the governor makes a reassessment of it.

When the prefectural governor has made a reassessment or determination pursuant to the provisions of the preceding three paragraphs, the governor must notify the special collection agent of it without delay.

When a reassessment or determination has been made pursuant to the provisions of paragraphs (1) through (3) of the preceding Article and there is a shortfall amount (meaning the shortfall in the amount of remittance resulting from a reassessment, or the amount of remittance resulting from a determination; the same applies hereinafter in this Subsection), a prefectural tax collection official must collect it, with the day on which one month has passed from the day on which the notice under paragraph (4) of that Article was given as the due date for payment.

In the case referred to in the preceding paragraph, an amount of delinquency charge equivalent to the amount calculated by multiplying the shortfall amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the due date for payment referred to in the preceding paragraph or the period from the day following that due date for payment until the day on which one month has passed) in accordance with the number of days in the period from the day following the due date for payment under Article 71-51, paragraph (2) (where there has been an extension of the due date for payment, the extended due date for payment; the same applies hereinafter in this Subsection, except in Article 71-60, paragraph (1)) until the date of remittance must be added to it and collected.

When the prefectural governor finds that there are unavoidable reasons for a special collection agent having been subject to the reassessment or determination under the preceding Article, the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

When a special collection agent for the share transfer income levy remits the remittance after the due date for payment under Article 71-51, paragraph (2), the agent must remit it with an amount of delinquency charge added, equivalent to the amount calculated by multiplying the amount of remittance by a rate of 14.6 percent per annum (7.3 percent per annum for the period from the day following that due date for payment until the day on which one month has passed) in accordance with the number of days in the period from the day following that due date for payment until the date of remittance.

When the prefectural governor finds that there are unavoidable reasons for a special collection agent not having remitted the remittance by the due date for payment under Article 71-51, paragraph (2), the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.