Local Tax Act

When the remittance return has been filed by its deadline for filing (including the case where, the remittance return having been filed after its deadline for filing, the proviso to the following paragraph or paragraph (8) applies; the same applies hereinafter in this paragraph), and a reassessment has been made under Article 276, paragraph (1) or (3), or an amended return has been submitted, the prefectural governor, if the governor finds that there was no justifiable ground for the error in the tax base amount or tax amount relating to the remittance return or amended return before that reassessment or amended return, must collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the shortfall amount due to that reassessment or the tax amount increased by that amended return (hereinafter in this paragraph referred to as the "covered shortfall, etc.") by a rate of 10 percent (where the covered shortfall, etc. (if, before that reassessment or amended return, a reassessment was made or an amended return was submitted for the prefectural non-statutory ordinary tax relating to that reassessment or amended return, the amount obtained by adding to it the total of the shortfall amounts due to that reassessment or the tax amounts increased by that amended return (where it was found that there was a justifiable ground for the error in the tax base amount or tax amount relating to the remittance return or amended return before that reassessment or amended return, the amount after deducting the shortfall amount due to that reassessment or the tax amount increased by that amended return, and where there has been a reassessment reducing the amount to be remitted or the tax amount to be paid for that prefectural non-statutory ordinary tax, or a change of the original disposition due to a ruling or judgment on a request for review or an action relating to a reassessment, the amount after deducting the amount equivalent to the portion reduced thereby)) exceeds the greater of the amount equivalent to the tax amount relating to the remittance return in the case where it was filed by its deadline for filing and 500,000 yen, the amount obtained by adding, to that amount, the amount calculated by multiplying the amount equivalent to the portion in excess (if the covered shortfall, etc. is less than the amount equivalent to the portion in excess, the covered shortfall, etc.) by a rate of five percent).

In any of the following cases, the prefectural governor must collect an amount of additional charge for failure to file equivalent to the amount calculated by multiplying the tax amount to be paid or remitted by the remittance return, amended return, determination or reassessment prescribed in each such item by a rate of 15 percent. However, this does not apply where it is found that there were justifiable grounds for the remittance return not having been submitted by the deadline for filing it.

where the remittance return has been filed after its deadline for filing, or a determination has been made under Article 276, paragraph (2);

where, after the remittance return was filed after its deadline for filing, an amended return has been submitted or a reassessment has been made under Article 276, paragraph (1) or (3);

where a reassessment has been made under Article 276, paragraph (3) after a determination under paragraph (2) of that Article.

In the case falling under the preceding paragraph (excluding the case where the proviso to that paragraph or paragraph (8) applies; the same applies in the following paragraph and paragraph (5)), when the tax amount to be paid or remitted prescribed in the preceding paragraph (in the case falling under item (ii) or (iii) of that paragraph, the amount obtained by adding the total of the tax amounts to be paid or remitted by a remittance return made after the deadline for filing the remittance return for that prefectural non-statutory ordinary tax, made before the amended return or reassessment prescribed in those provisions, or by a reassessment or determination under Article 276, paragraphs (1) through (3) (where there has been a change of the original disposition due to a reassessment reducing that tax amount to be paid or remitted, or due to a ruling or judgment on a request for review or an action relating to a reassessment, the amount after deducting the amount equivalent to the tax amount of the portion reduced thereby; hereinafter in the following paragraph referred to as the "cumulative tax amount"); hereinafter in the following paragraph referred to as the "cumulative tax amount after addition") exceeds 500,000 yen, the amount of additional charge for failure to file prescribed in the preceding paragraph is, notwithstanding that paragraph, the amount calculated under that paragraph plus the amount calculated by multiplying the amount equivalent to the portion in excess (if the tax amount to be paid or remitted prescribed in that paragraph is less than the amount equivalent to the portion in excess, that tax amount to be paid or remitted) by a rate of five percent.

In the case falling under paragraph (2), when the cumulative tax amount after addition (where, among the facts forming the basis for calculating the cumulative tax amount after addition, there is any that is found not to have been included in the basis for calculating the tax amount before the remittance return, amended return, determination or reassessment prescribed in each item of that paragraph for reasons not attributable to the taxpayer or special collection agent, the tax amount after deducting the amount calculated, as provided by Cabinet Order, as the tax amount based on that fact) exceeds 3,000,000 yen, the amount of additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding two paragraphs, the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative tax amount after addition into the amounts listed in the following items and multiplying each amount by the rate specified in the relevant item, the total of the amounts calculated by dividing the cumulative tax amount into the amounts listed in those items and multiplying each amount by the rate specified in the relevant item:

The amount equivalent to the portion not exceeding 500,000 yen: a rate of 15 percent

The amount equivalent to the portion exceeding 500,000 yen and not exceeding 3,000,000 yen: a rate of 20 percent

The amount equivalent to the portion exceeding 3,000,000 yen: a rate of 30 percent

In the case falling under paragraph (2), when any of the following items applies, the amount of additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, the amount obtained by adding, to the amount calculated pursuant to those provisions, the amount calculated by multiplying the tax amount to be paid or remitted prescribed in paragraph (2) by a rate of 10 percent:

where, in respect of prefectural non-statutory ordinary tax, an additional charge for failure to file (excluding one to which the following paragraph applies; the same applies in the following item) or a substantial additional charge (hereinafter in paragraph (3), item (i) of the following Article referred to as "additional charge for failure to file, etc.") has been collected during the period up to the day five years before, counted from the day preceding the day on which a remittance return was filed after the deadline for filing the remittance return or an amended return was submitted (limited to a filing made foreseeing that a reassessment or determination would be made by the prefectural governor following an investigation regarding the prefectural non-statutory ordinary tax relating to that remittance return or amended return; the same applies in the following item), or a reassessment or determination under Article 276, paragraphs (1) through (3) was made;

where, in respect of prefectural non-statutory ordinary tax for which the tax liability or special collection obligation arose in the year immediately preceding and the year before that, the year containing the day on which the tax liability or special collection obligation arose for the prefectural non-statutory ordinary tax pertaining to a remittance return filed after the deadline for filing the remittance return, an amended return submitted, or a reassessment or determination under Article 276, paragraphs (1) through (3), an additional charge for failure to file or a substantial additional charge (limited to one to which paragraph (2) of the following Article applies) (hereinafter in this item and paragraph (3), item (ii) of the following Article referred to as "specified additional charge for failure to file, etc.") has been collected, or where it is found that a determination should be made concerning a specified additional charge for failure to file, etc.

When a remittance return has been filed after its deadline for filing or an amended return has been submitted, if that filing was not made foreseeing that a reassessment or determination would be made by the prefectural governor following an investigation regarding the prefectural non-statutory ordinary tax relating to that remittance return or amended return, the amount of additional charge for failure to file prescribed in paragraph (2) relating to the tax amount relating to that remittance return or amended return is, notwithstanding paragraphs (2) through (4), the amount equivalent to the amount calculated by multiplying that tax amount by a rate of five percent.

When the prefectural governor has determined the amount of additional charge for understatement to be collected under paragraph (1) or the amount of additional charge for failure to file to be collected under paragraph (2), the governor must notify the taxpayer or special collection agent of it without delay.

The provisions of paragraph (2) do not apply when a remittance return falling under paragraph (6) has been filed, if that filing was made in a case specified by Cabinet Order as one in which it is found that there was an intention to file by the deadline for filing the remittance return, and was made by the day on which one month elapses from the deadline for filing the remittance return.

In the case falling under paragraph (1) of the preceding Article, where a taxpayer or special collection agent has concealed or disguised all or part of the facts that are to form the basis of calculating the amount of the tax base, and has filed a remittance return, an amended return, or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as a "written request for reassessment" in the following paragraph) based on the concealed or disguised facts, the prefectural governor is to, as provided by Cabinet Order, collect, in place of the amount of additional charge for understatement prescribed in paragraph (1) of the preceding Article, an amount of substantial additional charge equivalent to the amount calculated by multiplying the shortfall resulting from the reassessment, or the amount of tax increased by the amended return, that is to form the basis of its calculation, by a rate of 35 percent.

In the case falling under paragraph (2) of the preceding Article (excluding the case where the proviso to that paragraph applies), where a taxpayer or special collection agent has concealed or disguised all or part of the facts that are to form the basis of calculating the amount of the tax base, and, based on the concealed or disguised facts, has failed to file a remittance return by the deadline for filing it, or has filed it after the deadline for filing a remittance return, has filed an amended return, or has filed a written request for reassessment, the prefectural governor is to collect, in place of the amount of additional charge for failure to file prescribed in paragraph (2) of the preceding Article, an amount of substantial additional charge equivalent to the amount calculated by multiplying the amount of tax that is to form the basis of its calculation by a rate of 40 percent.

In the case falling under the preceding two paragraphs, when any of the following items applies (item (i) only, in the case falling under paragraph (1)), the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those provisions, the amount calculated under those provisions plus the amount calculated by multiplying, at a rate of 10 percent in each case, the shortfall resulting from the reassessment or the amount of tax increased by the amended return that is to form the basis of the calculation prescribed in paragraph (1), when the case falls under paragraph (1), or the amount of tax that is to form the basis of the calculation prescribed in the preceding paragraph, when the case falls under the preceding paragraph.

Where additional charge for failure to file, etc. has been collected in respect of a prefectural non-statutory ordinary tax during the period up to the day five years before, counted from the day before the day on which, based on the concealed or disguised facts that are to form the basis of calculating the amount of the tax base prescribed in the preceding two paragraphs, the remittance return was filed after the deadline for filing, the amended return was filed, or the reassessment or determination under Article 276, paragraphs (1) to (3) was made

Where specified additional charge for failure to file, etc. has been collected in respect of a prefectural non-statutory ordinary tax for which the tax liability or special collection obligation arose in the year preceding, or the year before the year preceding, the year that includes the day on which the tax liability or special collection obligation arose for the prefectural non-statutory ordinary tax pertaining to the filing of a remittance return after the deadline for filing, the filing of an amended return, or the reassessment or determination under Article 276, paragraphs (1) to (3), or where it is found that a determination of specified additional charge for failure to file, etc. should be made

In the case falling under paragraph (2), where there are grounds prescribed in paragraph (6) of the preceding Article regarding the filing of the remittance return or amended return, the prefectural governor does not collect the amount of substantial additional charge calculated on the basis of the amount of tax pertaining to that remittance return or the amount of tax increased by the amended return.

When the prefectural governor has determined the amount of substantial additional charge to be collected under paragraph (1) or (2), the governor must notify the taxpayer or special collection agent of it without delay.