Local Tax Act

The Local Tax Joint Organization (hereinafter in this Chapter referred to as "the Organization") has the purpose, as an organization jointly operated by local governments, of conducting tax work handled by the Organization while providing local governments with support for their affairs relating to local taxes, and thereby contributing to the rationalization of affairs relating to local taxes and to the improvement of convenience for persons liable for tax and special collection agents.

In this Chapter, the meanings of the terms set forth in the following items are as prescribed respectively in those items:

electronic data processing system for local tax procedures: means an electronic data processing system that connects with one another, by telecommunications lines, the computers (including input-output devices) used by the heads of administrative organs (meaning heads of local governments, the Minister for Internal Affairs and Communications, the Commissioner of the National Tax Agency, regional commissioners, district directors and other persons specified by Cabinet Order; the same applies in (b)), the Organization, persons who give the notices set forth in (a), and persons who receive the notices set forth in (b);

returns, applications, notifications and other notices (excluding those set forth in (b)) given to the head of a local government or the Minister for Internal Affairs and Communications under the provisions of this Act or orders, or Prefectural or Municipal Ordinances or rules, based on it (referred to as "local tax laws and regulations" in (b));

notices given by the head of an administrative organ under the provisions of local tax laws and regulations (including having the matters stated in written materials, etc. (meaning paper or other tangible objects on which information recognizable by human perception, such as writings, documents, texts, characters or figures, is stated) or recorded in an electronic or magnetic record (meaning a record made in an electronic form, a magnetic form or any other form not recognizable by human perception and used for information processing by a computer) viewed or recorded).

tax work handled by the Organization: means the following affairs handled by the Organization:

the affairs of establishing and managing the electronic data processing system for local tax procedures;

affairs that are to be handled by the Organization under the following provisions:

the provisions of Article 53, paragraphs (65) and (68), Article 72-32, paragraphs (1) and (4), Article 72-89-2, paragraphs (1) and (3), Article 317-6, paragraph (5) (limited to the part relating to item (i)), paragraph (6) (limited to the part relating to items (i) and (iii)) and paragraph (9), Article 321-4, paragraphs (7), (8) and (11), Article 321-7-11, and Article 321-8, paragraphs (62) and (65);

the provisions of Articles 747-2 through 747-5;

the provisions of Articles 747-6 through 747-12;

the provisions of orders based on this Act (excluding this Chapter).

tax information handled by the Organization: means information that the Organization handles in the tax work handled by the Organization.

The Organization is a corporation.

The address of the Organization is deemed to be located at the location of its principal office.

Only one Organization is to be established.

The Organization must provide for the following matters in its articles of incorporation:

its purpose;

its name;

the location of its office;

matters concerning its assets;

the number of members and the terms of office of the representatives' meeting, the method of resolution, and other matters concerning the representatives' meeting;

the number of officers, their terms of office, the allocation of their duties, and other matters concerning the officers;

matters concerning its business and the execution of that business;

the number of members of the governing council and other matters concerning the governing council;

matters concerning its finances and accounts;

matters concerning changes to the articles of incorporation;

matters concerning the bearing of expenses by local governments under Article 794;

the method of public notice and public announcement;

matters concerning the disclosure of information held by the Organization.

A change to the articles of incorporation of the Organization does not take effect unless the approval of the Minister for Internal Affairs and Communications is obtained.

The Organization must be registered as specified by Cabinet Order.

Matters that must be registered under the preceding paragraph may not be asserted against a third party until after registration.

The Organization must use the words "Local Tax Joint Organization" in its name.

A person other than the Organization must not use the words "Local Tax Joint Organization" in its name.

A representatives' meeting is established in the Organization as the body that decides the policies for the business and finances of the Organization.

The representatives' meeting is organized with an equal number of members set forth in item (i) and members set forth in item (ii).

persons selected respectively by the nationwide federations of prefectural governors, mayors of cities, or mayors of towns and villages (meaning the nationwide federations prescribed in Article 263-3, paragraph (1) of the Local Autonomy Act that have submitted the notification under that paragraph; the same applies in the following item) from among prefectural governors, mayors of cities, or mayors of towns and villages;

a person selected, separately or jointly, by the nationwide federations of prefectural governors, mayors of cities or mayors of towns and villages from among persons, other than prefectural governors, mayors of cities and mayors of towns and villages, who have a high level of expertise concerning local tax, law or information systems;

The number of members is to be fixed by the articles of incorporation within a range of six or more and twelve or fewer.

The term of office of members is to be a period fixed by the articles of incorporation within three years; provided, however, that the term of office of a substitute member is the remainder of the term of office of the predecessor.

A member may be reappointed.

A member set out in paragraph (2), item (i) is to lose that position when he or she ceases to be a prefectural governor, mayor of a city or mayor of a town or village.

The following matters must be put to a resolution of the representatives' meeting:

the amendment of the articles of incorporation;

the preparation or amendment of the document of operating methods;

the preparation or amendment of the budget and business plan;

the settlement of accounts;

the remuneration and retirement allowances of officers;

other matters that the representatives' meeting finds particularly necessary.

When the representatives' meeting finds it necessary to ensure the proper operation of the Organization's operations, it may have the president report on the Organization's operations and the status of its assets and liabilities.

When the representatives' meeting finds that an act of an officer or employee violates, or is likely to violate, this Act, other laws and regulations or the articles of incorporation, it may order the president to take measures necessary to correct that act.

A chair is to be established in the representatives' meeting, and is to be determined by mutual election among the members.

The chair presides over the affairs of the meeting and represents the representatives' meeting.

When the chair is prevented from performing his or her duties or the position of chair is vacant, the member designated in advance by the chair is to perform the duties of the chair.

A president and inspectors are to be established in the Organization as officers.

In the Organization, in addition to the officers prescribed in the preceding paragraph, a vice president or directors may be established as officers, as provided by the articles of incorporation.

The president represents the Organization and presides over its operations.

A vice president, as provided by the articles of incorporation, represents the Organization, assists the president and administers the Organization's operations, acts for the president when the president is prevented from performing his or her duties, and performs the duties of the president when the position of president is vacant.

A director, as provided by the articles of incorporation, assists the president (or, where a vice president is established, the president and the vice president; the same applies hereinafter in this paragraph) and administers the Organization's operations, acts for the president when the president is prevented from performing his or her duties, and performs the duties of the president when the position of president is vacant.

The inspectors inspect the Organization's operations.

Based on the results of an audit, an inspector may submit an opinion to the representatives' meeting, the president or the Minister for Internal Affairs and Communications when the inspector finds it necessary.

The president may attend the representatives' meeting and state his or her opinion.