Local Tax Act

In the case falling under paragraph (1) of the preceding Article, if a taxpayer conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and files a return, an amended return or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as the "written request for reassessment" in the following paragraph) based on the facts so concealed or disguised, the head of the designated city, etc. must, as provided by Cabinet Order, collect, in lieu of the amount of additional charge for understatement prescribed in paragraph (1) of the preceding Article, an amount of substantial additional charge equivalent to the amount calculated by multiplying the tax deficiency due to reassessment, or the tax amount increased by the amended return, that is to be the basis for that calculation, by a rate of 35 percent.

In the case falling under paragraph (2) of the preceding Article (excluding the case where the proviso to that paragraph applies), if a taxpayer conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and, based on the facts so concealed or disguised, does not file a return by the deadline for filing, or files a return after the deadline for filing, files an amended return, or files a written request for reassessment, the head of the designated city, etc. must, in lieu of the amount of additional charge for failure to file prescribed in that paragraph, collect an amount of substantial additional charge equivalent to the amount calculated by multiplying the tax amount that is to be the basis for that calculation by a rate of 40 percent.

In the case falling under the preceding two paragraphs, if any of the following items (item (i) in the case falling under paragraph (1)) applies, the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those provisions, to be the amount obtained by adding, to the amount calculated under those provisions, the amount calculated by multiplying, by a rate of 10 percent, the tax deficiency due to reassessment or the tax amount increased by the amended return that is to be the basis for calculation prescribed in paragraph (1) in the case falling under paragraph (1), or the tax amount that is to be the basis for calculation prescribed in paragraph (2) in the case falling under paragraph (2), respectively.

In the case where, during the period up to the day five years before the day preceding the day on which, based on the concealed or disguised facts that are to be the basis for calculating the amount of the tax base prescribed in the preceding two paragraphs, the return was filed after the deadline for filing, the amended return was filed, or a reassessment or determination under Article 701-58, paragraphs (1) to (3) was made, an additional charge for failure to file, etc. has been collected with respect to business office tax

In the case where a specified additional charge for failure to file, etc. has been collected with respect to business office tax imposed on a business conducted by a corporation for a business year that began in the year preceding, or the year before the year preceding, the year containing the first day of the business year relating to the return filed after the deadline for filing, the amended return filed, or a reassessment or determination under Article 701-58, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case where a specified additional charge for failure to file, etc. has been collected with respect to business office tax imposed on a business conducted by an individual whose taxation period began in the year preceding, or the year before the year preceding, the year containing the first day of the taxation period of the individual relating to the return filed after the deadline for filing, the amended return filed, or a reassessment or determination under Article 701-58, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case falling under the preceding three paragraphs, if there are grounds prescribed in the proviso to paragraph (1) or paragraph (6) of the preceding Article with respect to the filing of the return or amended return, the head of the designated city, etc. does not collect the amount of substantial additional charge calculated on the basis of the tax amount payable under that return or the tax amount increased by that amended return.

When the head of a designated city, etc. has determined the amount of substantial additional charge to be collected under paragraph (1) or (2), the head must, without delay, notify the taxpayer.

If a taxpayer does not pay in full the local government levies relating to business office tax by the due date for payment (where a reassessment or determination has been made, the due date for payment of the tax deficiency; the same applies hereinafter in this Article and Article 701-65, paragraph (3)), a tax collection official of the designated city, etc. 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.

In a designated city, etc. with special circumstances, a period different from that prescribed in the preceding paragraph may be specified by the Municipal Ordinance of that designated city, etc.

When a tax collection official of a designated city, etc. has issued a demand letter, the official may collect a fee in accordance with the provisions of the Municipal Ordinance of that designated city, etc.

If a person delinquent in payment of business office tax falls under any one of the following items, a tax collection official of the designated city, etc. must seize the property of the person delinquent in payment with respect to the local government levies relating to that business office tax.

The person delinquent in payment has received a demand and has not paid in full the local government levies relating to the business office 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.

The person delinquent in payment has not paid in full the local government levies relating to the business office tax by the due date for payment designated in 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 the local government levies relating to business office 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 with respect to a person delinquent in payment who has received a demand, a tax collection official of the designated city, etc. may seize that person's property immediately.

If a compulsory liquidation procedure has been carried out with respect to the property of a person delinquent in payment, a tax collection official of the designated city, etc. must make a request for share distribution, with respect to the local government levies relating to the business office tax that are in arrears, to the enforcement agency (where making a request for share distribution of the local government levies relating to the business office tax relating to a claim listed in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case relating to that request for share distribution).

Where a tax collection official of a designated city, etc. is able to effect seizure under paragraphs (1) to (3), if, with respect to property of the person delinquent in payment that is set forth in the items of Article 86, paragraph (1) of the National Tax Collection Act, seizure has already been effected by a delinquent tax collection procedure for other local government levies or national tax, or by a disposition carried out in accordance with the rules for those delinquent tax collection procedures, a request for share distribution for that property may be made by participatory seizure.

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

A disposition under the preceding paragraphs may also be carried out outside the area of the designated city, etc.