Local Tax Act

The reassessment or determination to be made under Article 72-39, Article 72-41 or Article 72-41-2 with respect to the total tax base amount relating to the business conducted by a corporation set forth in paragraph (1) of the preceding Article is to be made by the prefectural governor of the prefecture where the principal office or place of business of that corporation is located.

The prefectural governor of a relevant prefecture may, where finding it necessary to make a reassessment or determination under Article 72-41 or Article 72-41-2 with respect to the total tax base amount relating to the business conducted by a corporation set forth in paragraph (1) of the preceding Article, request the prefectural governor of the prefecture where the principal office or place of business of that corporation is located, attaching documents stating the grounds for the reassessment or determination, to make the reassessment or determination. In this case, where the request for that reassessment or determination falls under any of the following items, the request for that reassessment or determination must be made within two months from the day set out in the relevant item.

In the case of a request for reassessment to be made under Article 72-41, paragraph (1) or Article 72-41-2, paragraph (1): the day on which the return or amended return was filed;

In the case of a request for determination to be made under Article 72-41, paragraph (2) or Article 72-41-2, paragraph (2): the deadline for filing the return;

In the case of a request for reassessment to be made under Article 72-41, paragraph (3) or Article 72-41-2, paragraph (3): the day on which the reassessment under Article 72-41, paragraph (1) or Article 72-41-2, paragraph (1), or the determination under Article 72-41, paragraph (2) or Article 72-41-2, paragraph (2), was made.

The prefectural governor of the prefecture where the principal office or place of business of the corporation set forth in paragraph (1) of the preceding Article is located is to, where finding an error in the apportionment basis for the apportioned tax base (meaning the tax base amount apportioned, or to be apportioned, for each relevant prefecture; the same applies hereinafter in this Article) relating to a return or amended return filed by the corporation set forth in that paragraph, or in an apportionment basis corrected or determined under this paragraph (including the case where the apportionment that should have been made of the total tax base amount was not made), correct it, and, where the corporation set forth in paragraph (1) of the preceding Article did not file a return (excluding the case where a return is deemed to have been filed under Article 72-26, paragraph (5)), determine the apportionment basis.

Where a corporation set forth in paragraph (1) of the preceding Article has filed a return or amended return with the prefectural governor of the prefecture where its principal office or place of business is located, or has been subject to a reassessment or determination under Article 72-39, Article 72-41 or Article 72-41-2, and, due to an error in the apportionment basis for the apportioned tax base relating to that filing of a return or amended return or to that reassessment or determination (including the case where the apportionment that should have been made of the total tax base amount was not made), there is a relevant prefecture for which the apportioned tax base or the amount of enterprise tax is excessive, that corporation may, as provided by Order of the Ministry of Internal Affairs and Communications, request the prefectural governor of that relevant prefecture to make a reassessment under Article 72-39, Article 72-41 or Article 72-41-2 with respect to the apportioned tax base or amount of enterprise tax that has become excessive.

A corporation intending to make a request for reassessment under the preceding paragraph must submit to the prefectural governor of the relevant prefecture a written request for reassessment stating the tax base, etc. or tax amount, etc. prescribed in Article 20-9-3, paragraph (6) after the reassessment relating to the request, the tax amount to be paid before the reassessment relating to the request, the tax amount equivalent to the amount of the refund under the provisions of this Act that is to be stated in the return or amended return, and other matters that should serve as reference.

The prefectural governor of a relevant prefecture may, where finding it necessary to make a correction or determination under the provisions of paragraph (3) with respect to the apportionment basis, request the prefectural governor of the prefecture where the principal office or place of business of that corporation is located, attaching documents stating the grounds therefor, to make a correction or determination of the apportionment basis.

Where the prefectural governor of the prefecture where the principal office or place of business of the corporation set forth in paragraph (1) of the preceding Article is located has received documents relating to a request for reassessment or determination under paragraph (2) with respect to the total tax base amount of that corporation, or documents relating to a request for correction or determination under the preceding paragraph with respect to the apportionment basis of that corporation, and finds it necessary, the governor must make a reassessment or determination of the total tax base amount of that corporation, or a correction or determination of the apportionment basis of that corporation; provided, however, that where the governor's opinion differs from that of the prefectural governor of the relevant prefecture, the governor must, within two months from the day on which the governor received those documents, send those documents to the Minister for Internal Affairs and Communications with the governor's own opinion attached, and receive the Minister's instructions.

Where a request for instructions under the proviso to the preceding paragraph has been made, the Minister for Internal Affairs and Communications must, when finding it necessary to make a reassessment or determination of the total tax base amount or a correction or determination of the apportionment basis, instruct the prefectural governor of the prefecture where the principal office or place of business of that corporation is located to make that reassessment or determination of the total tax base amount or that correction or determination of the apportionment basis. In this case, the prefectural governor of the prefecture where the principal office or place of business of that corporation is located must, based on those instructions, make a reassessment or determination of the total tax base amount of that corporation or a correction or determination of the apportionment basis, notify the prefectural governor of the relevant prefecture to that effect, and report to the Minister for Internal Affairs and Communications.

Where a request for instructions under the proviso to paragraph (7) has been made, the Minister for Internal Affairs and Communications must, when finding it unnecessary to make a reassessment or determination of the total tax base amount or a correction or determination of the apportionment basis, notify the prefectural governor of the prefecture where the principal office or place of business of that corporation is located and the prefectural governor of the relevant prefecture to that effect.

When the Minister for Internal Affairs and Communications intends to give the instructions under the first sentence of paragraph (8) or the notification under the preceding paragraph, the Minister must hear the opinion of the Local Finance Council.

A reassessment or determination of the total tax base amount, or a correction or determination of the apportionment basis, made by the prefectural governor of the prefecture where the principal office or place of business of the relevant corporation is located pursuant to the provisions of paragraph (1) or (3) is deemed to be a reassessment or determination of the total tax base amount, or a correction or determination of the apportionment basis, respectively, made by the prefectural governor of the relevant prefecture.

The prefectural governor of the prefecture where the principal office or place of business of a corporation is located must, where the governor has made a reassessment or determination of the total tax base of that corporation, or a correction or determination of the apportionment basis, pursuant to the provisions of paragraph (1) or (3), notify the prefectural governor of the relevant prefecture to that effect.

In the application of the provisions of the preceding paragraphs to a foreign corporation, the phrase "the prefectural governor of the prefecture where the principal office or place of business is located" in those provisions is deemed to be replaced with "the prefectural governor of the prefecture where the office or place of business at which the person responsible for managing the business conducted in the area where this Act is enforced mainly performs duties is located".

When a person has made false statements in the written request for reassessment prescribed in paragraph (5) of the preceding Article and submitted it to the prefectural governor of a relevant prefecture, 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 has committed the violation referred to in the preceding paragraph in connection with the business or property of that corporation, in addition to punishing the offender, the fine prescribed in that paragraph is imposed on that corporation.

Where the provisions of the preceding paragraph apply to an association or foundation without juridical personality, in addition to the representative or administrator of the association or foundation without juridical personality representing it in its procedural acts, the provisions of laws and regulations concerning criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

Where a prefectural governor, with regard to the assessment and collection of enterprise tax, has requested the Government to allow inspection or recording of a return or amended return submitted to the Government by a person liable for enterprise tax, or by a corporation that is liable for corporation tax and is found to have a full controlling interest prescribed in Article 2, item (xii)-7-6 of the Corporation Tax Act with a person liable for enterprise tax (excluding a full controlling interest held by that person liable for tax prescribed in that item), or of documents relating to a reassessment or determination made by the Government with respect to the tax base or tax amount of that corporation, the Government is to have the prefectural governor or an official designated by the prefectural governor inspect or record the relevant documents.

Where all or part of the enterprise tax on the business conducted by a corporation has been evaded by deception or other wrongful acts, a representative of the corporation (including an individual who is a trustee of a trust subject to corporate taxation; the same applies in paragraph (3)), agent, employee or other worker who committed the violation is to be punished by imprisonment for not more than 10 years or a fine of not more than 10,000,000 yen, or both.

If the amount of tax evaded as referred to in the preceding paragraph exceeds 10,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 10,000,000 yen and not exceeding the amount of the tax evaded.

In addition to what is provided for in paragraph (1), where all or part of the enterprise tax on the business conducted by a corporation has been evaded by failing to file, within the deadline for filing the return prescribed in the relevant paragraph, a return under Article 72-25, paragraph (1), Article 72-28, paragraph (1) or Article 72-29, paragraph (1), (3) or (5), a representative, agent, employee or other worker of the corporation who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 5,000,000 yen, or both.

If the amount of tax evaded as referred to in the preceding paragraph exceeds 5,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 5,000,000 yen and not exceeding the amount of the tax evaded.

Where a representative of a corporation, or an agent, employee or other worker has committed a violation set forth in paragraph (1) or (3) in connection with the business or property of that corporation, in addition to punishing the offender, the fine prescribed in the relevant paragraph is to be imposed on that corporation.

The period of prescription in the case where a fine is imposed on a corporation or person for a violation set forth in paragraph (1) or (3) pursuant to the provisions of the preceding paragraph is governed by the period of prescription for the offenses under those paragraphs.

When paragraph (5) applies to an association or foundation without juridical personality, its representative or administrator represents that association or foundation without juridical personality 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 prefectural governor may reduce or exempt the enterprise tax on the business conducted by a corporation, in accordance with the Prefectural Ordinance of that prefecture, only for a corporation that the governor finds to need a reduction or exemption of the enterprise tax on the business it conducts due to a natural disaster or other special circumstances, or another corporation that has special circumstances.