Local Tax Act

A person liable for a non-statutory earmarked tax must, as provided by the Prefectural or Municipal Ordinance of the local government in question, declare or report the matters specified by that ordinance concerning the assessment and collection of that non-statutory earmarked tax.

If a false return or report is made on matters to be declared or reported pursuant to the provisions of the preceding Article, 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.

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.

If a person liable for a non-statutory earmarked tax fails, without justifiable grounds, to declare or report the matters to be declared or reported under Article 733-10, a local government may establish a provision in the Prefectural or Municipal Ordinance of that local government imposing a non-penal fine of not more than 100,000 yen on that person.

The head of a local government may reduce or exempt a non-statutory earmarked tax, as provided by the Prefectural or Municipal Ordinance of the local government in question, only for persons found to need a reduction or exemption of the non-statutory earmarked tax in the case of a natural disaster or other special circumstances, persons receiving public or private assistance for living due to poverty, and other persons in special circumstances; provided, however, that this does not apply to a special collection agent.

A taxpayer who is to file and pay a non-statutory earmarked tax must submit to the head of the local government, by the due date for payment specified by the Prefectural or Municipal Ordinance of the local government in question, a return stating the amount of the tax base for the period specified by that ordinance, the amount of tax and other matters specified by that ordinance, and pay the declared amount of tax to that local government.

A person who has filed a return under the preceding paragraph and who must amend the amount of the tax base or the amount of tax relating to the return after filing it must, without delay, file an amended return in the form specified by the Prefectural or Municipal Ordinance of the local government in question, and, if there is an increase in the amount of tax due to the amendment, pay it.

Where a non-statutory earmarked tax is to be collected by special collection, a person in a convenient position to collect that non-statutory earmarked tax must be designated as a special collection agent by the Prefectural or Municipal Ordinance of the local government in question, and be made to collect it.

The special collection agent referred to in the preceding paragraph is obliged to submit to the head of the local government, by the due date for payment of the non-statutory earmarked tax, a remittance return stating the amount of the tax base, the amount of tax and other matters specified by the Prefectural or Municipal Ordinance of the local government in question for the non-statutory earmarked tax to be collected, and to remit the remittance to that local government.

With respect to the portion of the remittance remitted under the provisions of the preceding paragraph that is equivalent to tax that the taxpayer of the non-statutory earmarked tax has not paid to the special collection agent, the special collection agent has a right to reimbursement against that taxpayer.

If a special collection agent has filed a suit based on the right to reimbursement under the preceding paragraph, a tax collection official of the local government must provide evidence and other necessary assistance, except in cases involving official confidential matters.

If a remittance return under the provisions of paragraph (2) of the preceding Article (including a return under the provisions of Article 733-14, paragraph (1); the same applies hereinafter in this Section) or an amended return under the provisions of Article 733-14, paragraph (2) is filed, and the amount of the tax base or the amount of tax relating to the remittance return (including a declaration under the provisions of Article 733-14, paragraph (1); the same applies hereinafter in this Section) or the amended return differs from the findings of the examination by the head of the local government, the head of the local government may reassess it.

Where a taxpayer or special collection agent has not submitted the remittance return referred to in the preceding paragraph, the head of a local government may, by investigation, determine the amount of the tax base and the amount of tax for which a remittance return should be filed.

The head of a local government may reassess the amount of the tax base or the amount of tax that has been reassessed or determined under the provisions of the preceding two paragraphs only where, by investigation, the head discovers that it is excessive, or discovers that it is insufficient and that the insufficiency is due to deception or other wrongful acts of the taxpayer or special collection agent.

Where the head of a local government has made a reassessment or determination under the provisions of the preceding three paragraphs, the head must notify the taxpayer or special collection agent of it without delay.

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

In the case referred to in the preceding paragraph, an amount of delinquency charge equal 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 until the day on which one month has passed 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 733-14, paragraph (1) or Article 733-15, paragraph (2) (where the due date for payment has been extended, the extended due date for payment; the same applies hereinafter in this Section) to the day of payment or remittance, must be added and collected.

Where the head of a local government finds that there are unavoidable grounds for a taxpayer or special collection agent having received the reassessment or determination under the provisions of paragraph (1) or (2) of the preceding Article, the head may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.