Local Tax Act

If a taxpayer fails to pay in full the local government levies relating to fixed assets tax by the due date for payment, a municipal tax collection official must issue a demand letter within 20 days after the due date for payment; provided, however, that this does not apply in the case of advance collection.

A municipality with special circumstances may specify, by Municipal Ordinance of the municipality, a period different from the period prescribed in the preceding paragraph.

When a municipal tax collection official has issued a demand letter, the official may collect a fee as provided by the Municipal Ordinance of that municipality.

If a person delinquent in payment of fixed assets tax falls under any one of the following items, a municipal tax collection official must seize the property of the person delinquent in payment for the local government levies relating to the fixed assets tax.

where the person delinquent in payment has received a demand and has not paid in full the local government levies relating to fixed assets tax that are the subject of the demand by the day on which 10 days have elapsed counting from the day on which the demand letter was issued;

where the person delinquent in payment has not paid in full the local government levies relating to fixed assets tax by the due date for payment designated by the notice concerning advance collection.

When the preceding paragraph is applied to a secondary taxpayer or guarantor, the term "demand letter" in item (i) of that paragraph is to read "written reminder to pay".

If, after the due date for payment of local government levies relating to fixed assets tax and by the day on which the 10 days prescribed in paragraph (1), item (i) have elapsed, a fact falling under any one of the items of Article 13-2, paragraph (1) arises regarding a person delinquent in payment who has received a demand, a municipal tax collection official may seize the property immediately.

If compulsory liquidation procedure has been carried out on the property of a person delinquent in payment, a municipal tax collection official must make a request for share distribution, for the delinquent local government levies relating to fixed assets tax, to the enforcement agency (where making a request for share distribution of local government levies relating to fixed assets tax that are claims set out in Article 114, item (i) of the Bankruptcy Act, to the court handling the bankruptcy case relating to the request for share distribution).

In a case where the municipal tax collection official may effect seizure under paragraphs (1) through (3), if property of the person delinquent in payment that is listed in the items of Article 86, paragraph (1) of the National Tax Collection Act has already been seized in a delinquent tax collection procedure for local government levies of another local government or for national taxes, or in a disposition following the example of such a delinquent tax collection procedure, a request for share distribution with respect to that property may be made by participatory seizure.

When carrying out a delinquent tax collection procedure with respect to fixed assets tax collected under Article 364, paragraph (5), property may not be realized until the day on which the notice under Article 389, paragraph (1) is given for the fixed assets.

Beyond what is provided for in the preceding paragraphs, the delinquent tax collection procedure for local government levies relating to fixed assets tax is carried out in accordance with the rules for the delinquent tax collection procedure prescribed in the National Tax Collection Act.

Dispositions under paragraphs (1) through (5) and the preceding paragraph may also be carried out outside the area of the municipality.

If a taxpayer of fixed assets tax, for the purpose of evading the execution of a delinquent tax collection procedure, conceals or destroys the taxpayer's property or disposes of it to the detriment of the municipality, falsely increases the encumbrances on the property, or alters its present state, thereby reducing the value of the property or increasing the expenses for the delinquent tax collection procedure, that person is to be punished by imprisonment for not more than three years or a fine of not more than 2,500,000 yen, or both.

The same applies where a third party in possession of the property of a taxpayer commits an act referred to in the preceding paragraph for the purpose of enabling the taxpayer to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the taxpayer or of the third party in possession of the property in an act referred to in the preceding two paragraphs, the person who committed the violation as the counterparty is to be punished by imprisonment for not more than two years or a fine of not more than 1,500,000 yen, or both.

If a representative of a corporation, or an agent, employee or other worker of a corporation or a person, commits a violation prescribed in the preceding three paragraphs in connection with the business or property of that corporation or person, then in addition to punishing the offender, the fine prescribed in the relevant paragraphs is imposed on that corporation or person.

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, in the case of Article 373, paragraph (7), the person fails to answer, or makes a false statement, in response to questions by a municipal tax collection official conducted by following the example of the provisions of Article 141 of the National Tax Collection Act;

if, in the case of Article 373, paragraph (7), the person refuses, obstructs or evades an inspection of books and documents (meaning the books and documents prescribed in Article 141 of the National Tax Collection Act; the same applies in the following item) or other articles conducted by a municipal tax collection official by following the example of the provisions of Article 141 of the National Tax Collection Act;

if, in the case of Article 373, paragraph (7), the person, without justifiable grounds, fails to comply with a request by a municipal tax collection official for the presentation or submission of articles, made by following the example of the provisions of Article 141 of the National Tax Collection Act, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

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.

In the case of Article 373, paragraph (7), a person who makes a false statement on a matter to be stated to the mayor of the municipality by following the example of the provisions of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis in Article 109, paragraph (4) of that Act) is punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.

A municipality must maintain a fixed assets tax ledger in order to make clear the status of fixed assets and the price of fixed assets that is the tax base for fixed assets tax.

A municipality may, as provided by Order of the Ministry of Internal Affairs and Communications, maintain all or part of the fixed assets tax ledger referred to in the preceding paragraph by maintaining an electronic or magnetic record (meaning a record made in electronic form, magnetic form or any other form that cannot be perceived by the human senses, which is used for information processing by a computer; the same applies hereinafter in this Section).

In addition to the fixed assets tax ledger referred to in paragraph (1), a municipality must, as provided by the Municipal Ordinance of that municipality, maintain and progressively compile cadastral maps, land use maps, soil classification maps, house sketch maps, fixed assets sale and purchase record books and other materials necessary for the valuation of fixed assets.

The mayor of the municipality must register in the land tax ledger, as provided by Order of the Ministry of Internal Affairs and Communications, with respect to land registered in the register, the registered matters listed in Article 27, item (iii) and the items of Article 34, paragraph (1) of the Real Property Registration Act, the address and name or designation of the nominal holder of registration of ownership, pledge and superficies right with a specified duration of more than 100 years, and the base-year price or comparison-based price of that land (in the cases of Article 343, paragraph (2), latter part, and paragraphs (4) and (5), the address and name or designation of the person on whom fixed assets tax is to be imposed under those provisions, and the base-year price or comparison-based price).

The mayor of the municipality must register in the supplementary land tax ledger, as provided by Order of the Ministry of Internal Affairs and Communications, with respect to land that is not registered in the register and on which fixed assets tax may be imposed under the provisions of this Act, the address and name or designation of the owner, and the location, lot number, land category, area and base-year price or comparison-based price of that land.

The mayor of the municipality must register in the house tax ledger, as provided by Order of the Ministry of Internal Affairs and Communications, with respect to houses registered in the register, the registered matters listed in Article 27, item (iii) and the items of Article 44, paragraph (1) of the Real Property Registration Act, the address and name or designation of the nominal holder of registration of ownership, and the base-year price or comparison-based price of that house (in the cases of Article 343, paragraph (2), latter part, and paragraphs (4) and (5), the address and name or designation of the person on whom fixed assets tax is to be imposed under those provisions, and the base-year price or comparison-based price).

The mayor of the municipality must register in the supplementary house tax ledger, as provided by Order of the Ministry of Internal Affairs and Communications, with respect to houses other than houses registered in the register and on which fixed assets tax may be imposed under the provisions of this Act, the address and name or designation of the owner, and the location, house number, type, structure, floor area and base-year price or comparison-based price of that house.

The mayor of the municipality must register in the depreciable assets tax ledger, as provided by Order of the Ministry of Internal Affairs and Communications, the address and name or designation of the owner of a depreciable asset (in the cases of Article 343, paragraphs (9) and (10), the person deemed to be the owner under those provisions; the same applies in Article 383 and Article 742, paragraphs (1) and (3)), and the location, type, quantity and price of the depreciable asset.

In addition to what is provided for in the preceding paragraphs, the mayor of the municipality must register in the fixed assets tax ledger, for fixed assets subject to the application of Article 349-3, Article 349-3-2 or Article 349-3-4, the amount obtained by multiplying the price of those fixed assets by the rate provided for in those provisions, and for depreciable assets subject to the application of Article 349-4 or Article 349-5, the amount that the municipality is to take as the tax base for fixed assets tax under those provisions.

If the mayor of the municipality finds that there is an impediment to taxation because land or a house that should be registered in the register is not registered, or because the registered matters, such as the land category, differ from the facts, the mayor may request the registry office having jurisdiction over the location of that land or house to take measures such as making the registration that should be made or correcting the registered matters. In this case, the registry office must, if it finds the request appropriate, without delay take measures such as making the registration pertaining to the request or correcting the registered matters, and if it finds the request inappropriate, without delay notify the mayor of the municipality to that effect.

When imposing fixed assets tax, based on Article 343, paragraph (7), on a person deemed to be the owner prescribed in paragraph (1) of that Article in respect of provisional replotting land, etc., provisionally used land, reserved land or replotted land, the mayor of the municipality must, as provided by Order of the Ministry of Internal Affairs and Communications, register on a separate sheet the address and name or designation of the person deemed to be the owner of that provisional replotting land, etc., provisionally used land, reserved land or replotted land, and the location, land category, area and base-year price or comparison-based price, and attach it to the land tax ledger or supplementary land tax ledger in which the former land corresponding to that provisional replotting land, etc. or replotted land, or the provisionally used land or reserved land, is registered. In this case, with respect to that former land or provisionally used land or reserved land, notwithstanding paragraphs (1) and (2), it is not necessary to register the base-year price or comparison-based price in the land tax ledger or supplementary land tax ledger, and the separate sheet attached to that land tax ledger or supplementary land tax ledger is deemed to be a supplementary land tax ledger for the purpose of the application of the provisions of this Act.

A municipality may, as provided by Order of the Ministry of Internal Affairs and Communications, prepare the separate sheet referred to in the preceding paragraph by preparing an electronic or magnetic record.