Local Tax Act

A municipality in which a mineral spring bath is located is to impose bathing tax on bathing guests for bathing in the mineral spring bath, to cover the costs required for the provision of environmental sanitation facilities, facilities for the protection and management of mineral spring sources, fire-fighting facilities and other facilities necessary for fire-fighting activities, and for the promotion of tourism (including the provision of tourist facilities).

The rate of bathing tax is to be, as a standard, 150 yen per bathing guest per day.

Bathing tax must be collected by special collection.

Where bathing tax is to be collected by special collection, the operator of a bath or another person in a position convenient for collection must be designated as a special collection agent by the Municipal Ordinance of the municipality concerned and made to collect the tax.

The special collection agent referred to in the preceding paragraph is obliged to submit to the municipality, by the due date for payment specified by the Municipal Ordinance of the municipality concerned, a remittance return stating the tax base amount and tax amount relating to the bathing tax that the agent is to collect and other matters specified by Ordinance, and to remit the remittance to that municipality.

With respect to the portion of the remittance remitted pursuant to the preceding paragraph that corresponds to tax that the taxpayer for bathing tax has not paid to the special collection agent, the special collection agent has a right to reimbursement against that taxpayer.

Where a special collection agent has brought an action on the right to reimbursement referred to in the preceding paragraph, a municipal tax collection official must provide evidence and other necessary assistance, except where it concerns official secrets.

Where necessary for an examination concerning the assessment and collection of bathing tax, a municipal tax collection official may question the following persons, or inspect the books and documents relating to the business of the person set forth in item (i) (including, where an electronic or magnetic record (meaning a record made in an electronic form, magnetic form or any other form that cannot be perceived by human senses, which is used for information processing by a computer) has been created or kept in lieu of their creation or keeping, that electronic or magnetic record; the same applies in items (i) and (ii) of paragraph (1) of the following Article) or other articles, or demand the presentation or submission of such articles (including copies thereof):

a special collection agent;

a person liable for tax or a person found to have tax liability; or

a person other than the persons set forth in the preceding two items who is found to have a direct relationship to the assessment and collection of the bathing tax.

In the case referred to in the preceding paragraph, that tax collection official must carry a certificate proving his or her status and present it when requested by a person concerned.

A municipal tax collection official may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

Notwithstanding the provisions of paragraph (1), an examination concerning delinquent tax collection procedures for bathing tax is governed by Article 701-18, paragraph (6).

The authority of a municipal tax collection official under the provisions of paragraph (1) or (3) must not be construed as having been granted for the purpose of criminal investigation.

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:

if the person refuses, obstructs or evades an inspection of books, documents or other articles under the provisions of the preceding Article;

if the person, without justifiable grounds, fails to comply with a request to present or submit articles under the provisions of paragraph (1) of the preceding Article, or presents or submits books, documents or other articles (including copies thereof) containing false entries or records;

if the person fails to answer questions put by a tax collection official under the preceding Article, or gives a false answer.

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

Where a person fails to remit all or part of the remittance relating to bathing tax that is to be collected and remitted pursuant to Article 701-4, paragraph (2), the person who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 1,000,000 yen, or both.

Where the amount not remitted as referred to in the preceding paragraph exceeds 1,000,000 yen, the amount of the fine referred to in that paragraph may, depending on the circumstances and notwithstanding the provisions of that paragraph, be an amount exceeding 1,000,000 yen and not more than an amount equivalent to the amount not remitted.

Where the representative of a corporation, or the agent, employee or other worker of a corporation or person, has committed a violation referred to in paragraph (1) in connection with the business of that corporation or person, the fine prescribed in that paragraph is also imposed on that corporation or person, in addition to punishing the offender.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of prescription is the same as that for the offense referred to in paragraph (1).

Where a remittance return has been submitted pursuant to Article 701-4, paragraph (2), the mayor of the municipality may reassess the tax base amount or tax amount relating to the remittance return if it differs from what the mayor has ascertained through examination.

Where a special collection agent has not submitted the remittance return referred to in the preceding paragraph, the mayor of the municipality may, on the basis of examination, determine the tax base amount and tax amount that are to be stated in the remittance return.

The mayor of the municipality may reassess the tax base amount or tax amount reassessed or determined pursuant to the preceding two paragraphs only where the mayor discovers through examination that it is excessive, or that it is insufficient and the insufficiency is due to fraud or other wrongful acts by the special collection agent.

Where the mayor of the municipality has made a reassessment or determination pursuant to the preceding three paragraphs, the mayor must notify the special collection agent of it without delay.

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

In the case referred to in the preceding paragraph, the shortfall amount must be collected with an amount of delinquency charge added to it, 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 until the due date for payment under the preceding paragraph or the period until the day on which one month has elapsed from the day following that due date for payment) according to the number of days in the period from the day following the due date for payment under Article 701-4, paragraph (2) (where the due date for payment has been extended, that extended due date for payment; the same applies hereinafter to bathing tax) to the date of remittance.

Where the mayor of the municipality finds that there are unavoidable reasons for the special collection agent having received the reassessment or determination under paragraph (1) or (2) of the preceding Article, the mayor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

Where a special collection agent for bathing tax remits the remittance after the due date for payment under Article 701-4, paragraph (2), the agent must remit it with an amount of delinquency charge added to the amount of remittance, equivalent to the amount calculated by multiplying that amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period until the day on which one month has elapsed from the day following that due date for payment) according to the number of days in the period from the day following the due date for payment under that paragraph to the date of remittance.

Where the mayor of the municipality finds that there are unavoidable reasons for the special collection agent's failure to remit the remittance by the due date for payment under Article 701-4, paragraph (2), the mayor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.