Local Tax Act

Where a person fails to remit all or part of the remittance of the share transfer income levy to be collected and remitted pursuant to the provisions of Article 71-51, paragraph (2), the person who committed the violation is to be punished by imprisonment for not more than 10 years or a fine of not more than 2,000,000 yen, or both.

If the amount not remitted as referred to in the preceding paragraph exceeds 2,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 2,000,000 yen and not exceeding the amount not remitted.

Where a representative of a corporation or an agent, employee, or other worker has committed the violation referred to in paragraph (1) 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.

The period of prescription in the case where a fine is imposed on a corporation under the preceding paragraph for the violation referred to in paragraph (1) is governed by the period of prescription for the offense referred to in that paragraph.

When a special collection agent fails to pay in full the local government levies related to the share transfer income levy by the due date for payment (where a reassessment or determination under the provisions of Article 71-52, paragraphs (1) through (3) has been made, the due date for payment under Article 71-53, paragraph (1); the same applies hereinafter in this Subsection), a prefectural 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 prefecture in special circumstances may, by a Prefectural Ordinance of that prefecture, provide for a period different from the period prescribed in the preceding paragraph.

When a prefectural tax collection official has issued a demand letter, the official may collect a fee in accordance with the Prefectural Ordinance of the prefecture concerned.

When a person delinquent in payment related to the share transfer income levy falls under any of the following items, a prefectural tax collection official must seize the property of the person delinquent in payment with respect to the local government levies related to that share transfer income levy:

Where the person delinquent in payment has received a demand and fails to pay in full the local government levies related to the share transfer income levy pertaining to that demand by the day on which 10 days have passed counting from the day on which the demand letter was issued;

Where the person delinquent in payment fails to pay in full the local government levies related to the share transfer income levy by the due date for payment designated by the notice pertaining to 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 deemed to be replaced with "written reminder to remit".

Where, by the day on which the 10 days prescribed in paragraph (1), item (i) have passed after the due date for payment of the local government levies related to the share transfer income levy, a fact falling under any item of Article 13-2, paragraph (1) has arisen with respect to a person delinquent in payment who has received a demand, a prefectural tax collection official may seize that person's property immediately.

Where compulsory liquidation procedure has been carried out with respect to the property of a person delinquent in payment, a prefectural tax collection official must make a request for share distribution, with respect to the local government levies related to the share transfer income levy in arrears, to the enforcement agency (in the case of making a request for share distribution of local government levies related to the share transfer income levy pertaining to a claim listed in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case pertaining to that request for share distribution).

When a prefectural tax collection official is able to make a seizure under paragraphs (1) through (3), and property of a person delinquent in payment set out 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 other local government levies or national taxes, or by a disposition governed by the rules of those delinquent tax collection procedures, the request for share distribution for that property may be made by participatory seizure.

Beyond what is provided for in the preceding paragraphs, the delinquent tax collection procedure for the local government levies related to the share transfer income levy is carried out in accordance with the rules for the delinquent tax collection procedure under the National Tax Collection Act.

Dispositions under the preceding paragraphs may also be carried out outside the area of the prefecture concerned.

When a special collection agent for the share transfer income levy, for the purpose of evading the execution of a delinquent tax collection procedure, conceals or damages the property or disposes of it to the detriment of the prefecture, performs an act of falsely increasing the encumbrances on that property, or alters its current state and thereby reduces the value of that property or performs an act of increasing the expenses for the delinquent tax collection procedure relating to it, 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 special collection agent commits an act referred to in the preceding paragraph for the purpose of enabling the special collection agent to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the special collection agent 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 the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in the preceding three paragraphs in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in the relevant paragraph is to be imposed on that corporation or individual.

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator 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.

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:

in the case referred to in Article 71-60, paragraph (6), where a person fails to answer, or makes a false statement in response to, a question put by a prefectural tax collection official, conducted in accordance with the rules of Article 141 of the National Tax Collection Act;

in the case referred to in Article 71-60, paragraph (6), where a person refuses, obstructs, or evades an inspection by a prefectural tax collection official, conducted in accordance with the rules of Article 141 of the National Tax Collection Act, of books and documents (meaning the books and documents prescribed in that Article; the same applies in the following item) or other articles;

in the case referred to in Article 71-60, paragraph (6), where a person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official, made in accordance with the rules of Article 141 of the National Tax Collection Act, for the presentation or submission of articles, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

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

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator 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 person who, in the case referred to in Article 71-60, paragraph (6), makes a false statement on matters to be stated to the prefectural governor in accordance with the rules of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis pursuant to Article 109, paragraph (4) of that Act) is to be punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.

A prefecture is to distribute, as provided by Cabinet Order, an amount equivalent to three fifths of the amount obtained by multiplying the amount equivalent to the share transfer income levy amount remitted to that prefecture by the rate specified by Cabinet Order, to the municipalities (including special wards; the same applies hereinafter in this Article) within that prefecture, apportioned by the amount calculated, as provided by Cabinet Order, on the basis of the amount of the individual prefectural inhabitant tax pertaining to each municipality.

The amount of individual prefectural inhabitant tax relating to the municipality referred to in the preceding paragraph is to be calculated as provided by Order of the Ministry of Internal Affairs and Communications.