Local Tax Act

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.

A prefecture may establish a provision in the Prefectural Ordinance of that prefecture to the effect that, where a person liable for prefectural non-statutory ordinary tax, without justifiable grounds, fails to make a declaration or report on matters to be declared or reported under Article 271, a non-penal fine of not more than 100,000 yen is to be imposed on that person.

A prefectural governor may reduce or exempt that prefectural non-statutory ordinary tax, in accordance with the Prefectural Ordinance of the prefecture concerned, only for a person who is found to need a reduction or exemption of prefectural non-statutory ordinary tax in the case of a natural disaster or other special circumstances, a person who receives public or private assistance for living because of poverty, and other persons in special circumstances. However, this does not apply to a special collection agent.

A taxpayer who is to pay prefectural non-statutory ordinary tax by filing and payment must submit to the prefectural governor a return stating the tax base amount and the tax amount for the period specified by the Prefectural Ordinance of the prefecture concerned and other matters specified by that Ordinance, by the due date for payment specified by that Ordinance, and pay the declared tax amount to that prefecture.

A person who has submitted a return under the preceding paragraph must, where the tax base amount or tax amount relating to the declaration has to be amended after submitting the return, without delay submit an amended return in the form specified by the Prefectural Ordinance of the prefecture concerned and, if there is a tax amount increased by the amendment, pay it.

Where prefectural non-statutory ordinary tax is to be collected by special collection, a person in a convenient position to collect that prefectural non-statutory ordinary tax must be designated as a special collection agent by the Prefectural Ordinance of the prefecture concerned, and made to collect the tax.

The special collection agent referred to in the preceding paragraph is obligated to submit to the prefectural governor, by the due date for payment of that prefectural non-statutory ordinary tax, a remittance return stating the tax base amount and tax amount relating to the prefectural non-statutory ordinary tax to be collected and other matters specified by that Ordinance, and to remit the amount to be remitted to that prefecture.

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

Where a special collection agent has brought an action based on the right to reimbursement referred to in the preceding paragraph, prefectural tax collection officials must provide evidence and other necessary assistance, except in matters concerning official secrets.

Where a remittance return under paragraph (2) of the preceding Article (including a return under Article 274-2, paragraph (1); the same applies hereinafter to prefectural non-statutory ordinary tax) or an amended return under Article 274-2, paragraph (2) has been submitted, the prefectural governor may reassess the tax base amount or tax amount if the tax base amount or tax amount relating to the remittance return (including a filing under Article 274-2, paragraph (1); the same applies hereinafter to prefectural non-statutory ordinary tax) or amended return differs from what the governor has found by investigation.

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

The prefectural governor may reassess the tax base amount or tax amount reassessed or determined under the preceding two paragraphs only where, through investigation, the governor finds that it is excessive, or finds that it is insufficient and that the insufficiency is due to fraud or other wrongful act of the taxpayer or special collection agent.

When the prefectural governor has made a reassessment or determination under the preceding three paragraphs, the governor must notify the taxpayer or special collection agent of it without delay.

Where a reassessment or determination has been made under paragraphs (1) through (3) of the preceding Article and there is a shortfall amount (meaning the shortfall in the tax or remittance resulting from a reassessment, or the tax amount or amount of remittance resulting from a determination; the same applies hereinafter to prefectural non-statutory ordinary tax), a prefectural tax collection official must collect it, with the day on which one month has passed from the day on which the notice under paragraph (4) of that Article was given as the due date for payment.

In the case referred to in the preceding paragraph, the shortfall amount must be collected with the addition of an amount of delinquency charge equivalent 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 elapsed 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 274-2, paragraph (1) or Article 275, paragraph (2) (where there has been an extension of the due date for payment, the extended due date for payment; the same applies hereinafter to prefectural non-statutory ordinary tax) until the date of payment or remittance.

A prefectural governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph if the governor finds that there were unavoidable grounds for the taxpayer or special collection agent having received the reassessment or determination under paragraph (1) or (2) of the preceding Article.