Local Tax Act

Where tobacco tax is collected by the method of ordinary collection pursuant to the proviso to Article 472, it is to be collected by fixing payment periods, as provided by the Municipal Ordinance of that municipality.

In the case referred to in the preceding paragraph, the tax notice to be delivered to the taxpayer who is to pay the tobacco tax collected by the method of ordinary collection (hereinafter in this Section referred to as the "taxpayer") must be delivered to the taxpayer no later than 10 days before the due date for payment.

Where a wholesale seller, etc. has had manufactured tobacco returned that it sold to a tobacco retailer whose business office is located within the area of that municipality, due to the cancellation of a sales contract or other unavoidable reasons, an amount equivalent to the amount of tobacco tax paid or to be paid on the manufactured tobacco relating to that return of goods (or, where a deduction under this paragraph has been made for that amount of tobacco tax, the amount before that deduction) is deducted from the amount of tobacco tax on the taxable quantity relating to a return under the provisions of Article 473, paragraph (1) or (2) that the wholesale seller, etc. is to submit to the mayor of the municipality in or after the month following the month containing the day on which it had that return of goods (limited to those submitted within the deadlines prescribed in those provisions) (where exemption is received under the provisions of Article 469, paragraph (1), the amount after deduction of the amount of tobacco tax relating to the manufactured tobacco to which that paragraph applies; the same applies in the following paragraph).

In the case prescribed in the preceding paragraph, where, after deducting the amount for which a deduction under the provisions of that paragraph is sought from the amount of tobacco tax on the taxable quantity of the month in which the deduction under the provisions of that paragraph is to be received, a shortfall still remains, or where, in the month in which the deduction under the provisions of that paragraph is to be received, there is no amount of tobacco tax on the taxable quantity to be declared to the mayor of the municipality of the location of the business office of the tobacco retailer relating to the manufactured tobacco so returned, the mayor of the municipality refunds, respectively, that shortfall or the amount equivalent to the amount to be deducted under the provisions of the preceding paragraph, as stated in the return under the provisions of Article 473, paragraph (1), (2) or (4).

Where the mayor of the municipality refunds an amount equivalent to the amount of tobacco tax pursuant to the provisions of the preceding paragraph and there are unpaid local government levies of the taxpayer filing returns who is to receive the refund, the mayor may appropriate the amount to be refunded to them.

Where an amount equivalent to the amount of tobacco tax is refunded or appropriated pursuant to the provisions of the preceding two paragraphs, the day on which 10 days have elapsed counting from the day on which the taxpayer filing returns submitted the return under the provisions of Article 473, paragraph (1), (2) or (4) relating to that refund is deemed to be the day listed in Article 17-4, paragraph (1), item (iv), and that paragraph (excluding items (i) through (iii)) applies.

Where a person has evaded all or part of tobacco tax by deception or other wrongful acts, 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 1,000,000 yen, or both.

Where a person has received a refund under the provisions of paragraph (2) of the preceding Article by deception or other wrongful acts, 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 1,000,000 yen, or both.

Where the amount of tax evaded as referred to in paragraph (1) or the amount refunded as referred to in the preceding paragraph exceeds 1,000,000 yen, the amount of the fine referred to in those paragraphs may, in light of the circumstances, notwithstanding the provisions of those paragraphs, be an amount exceeding 1,000,000 yen and not exceeding the amount equivalent to the amount of tax evaded or the amount refunded.

In addition to what is prescribed in paragraph (1), where a person has evaded all or part of tobacco tax by failing to submit a return under the provisions of Article 473, paragraph (1) or (2) by the deadline for filing returns prescribed in those paragraphs, the person who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 500,000 yen, or both.

Where the amount of tax evaded as referred to in the preceding paragraph exceeds 500,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding the provisions of that paragraph, be an amount exceeding 500,000 yen and not exceeding the amount equivalent to the amount of tax evaded.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or a person, has committed a violation under paragraph (1), (2) or (4) in connection with the business or property of that corporation or person, in addition to punishing the offender, the fines prescribed in those paragraphs are to be imposed on that corporation or person.

Where a fine is imposed on a corporation or a person for a violation under paragraph (1), (2) or (4) pursuant to the preceding paragraph, the period of prescription is governed by the period of prescription for the offenses under those paragraphs.

Where the mayor of a municipality has requested a prefectural governor, with respect to the assessment and collection of tobacco tax, to allow the inspection or recording of a return or amended return that a person liable for prefectural tobacco tax submitted to the prefectural governor, documents relating to a report made by a wholesale seller, etc. to the prefectural governor under Article 74-16, or documents concerning a reassessment or determination that the prefectural governor made with respect to the taxable quantity or tax amount of that person liable for tax relating to prefectural tobacco tax, the prefectural governor is to have the relevant documents inspected or recorded by the mayor of the municipality or an official designated by the mayor.

Where a return under Article 473, paragraph (1), (2) or (4) (hereinafter in this Section referred to as a "return") or an amended return under Article 475, paragraph (2) (hereinafter in this Section referred to as an "amended return") has been submitted, and the taxable quantity, tax amount or refund amount relating to that return or amended return differs from what the mayor of the municipality has found by investigation, the mayor of the municipality is to reassess it.

Where a person who is to submit a return has not submitted that return, the mayor of the municipality is to determine, by investigation, the taxable quantity and tax amount to be declared.

Where the mayor of the municipality learns that there is an excess or deficiency in the taxable quantity, tax amount or refund amount reassessed under paragraph (1) or this paragraph or determined under the preceding paragraph, the mayor is to reassess it by investigation.

Where the mayor of the municipality has made a reassessment or determination under the preceding three paragraphs, the mayor must notify the taxpayer filing returns 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 tax deficiency (meaning the tax deficiency resulting from a reassessment or the tax amount resulting from a determination; the same applies hereinafter in this Section), a municipal tax collection official must collect it, with the day on which one month has elapsed from the day on which notification was given under paragraph (4) of that Article as the due date for payment.

In the case referred to in the preceding paragraph, an amount of delinquency charge equivalent to the amount calculated by multiplying the tax deficiency by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the due date for payment under the preceding paragraph or the period up to 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 473, paragraph (1) or (2) (where the due date for payment has been extended, the extended due date for payment; the same applies hereinafter in this Section) to the date of payment, must be added to the tax deficiency and collected.

Where the mayor of the municipality finds that there are unavoidable reasons for the taxpayer filing returns having received a reassessment or determination under paragraphs (1) through (3) of the preceding Article, the mayor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

A taxpayer filing returns for tobacco tax who pays that tobacco tax after the due date for payment under Article 473, paragraph (1) or (2) must pay it with an amount of delinquency charge added to the tax amount, equivalent to the amount calculated by multiplying it by a rate of 14.6 percent per annum (7.3 percent per annum for the period listed in each of the following items according to the classification of tax amount listed in that item), according to the number of days in the period from the day following that due date for payment to the date of payment:

tax amount relating to a return filed by its deadline for filing: the period up to the day on which one month elapses from the day following the due date for payment under Article 473, paragraph (1) or (2) relating to that tax amount;

tax amount relating to a return filed after its deadline for filing: the period up to the day of that filing, or the period up to the day on which one month elapses from the day following that day;

tax amount relating to an amended return: the period up to the day on which the amended return was filed, or the period up to the day on which one month elapses from the day following that day.

A taxpayer of tobacco tax who pays that tobacco tax after the due date for payment under Article 476, paragraph (1) (where the due date for payment has been extended, the extended due date for payment; the same applies hereinafter in this Section) must pay it with an amount of delinquency charge added to the tax amount, equivalent to the amount calculated by multiplying it by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to 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 that due date for payment to the date of payment.

Where the mayor of the municipality finds that there are unavoidable reasons for a taxpayer filing returns or a taxpayer not having paid tobacco tax by the due date for payment under Article 473, paragraph (1) or (2) or the due date for payment under Article 476, paragraph (1), the mayor may reduce or exempt the amount of delinquency charge referred to in the preceding two paragraphs.