Local Tax Act

A person liable for business office tax imposed on business conducted by an individual at an office or place of business must, by March 15 of the year following that year (where the business is discontinued during the year, within one month from the date of discontinuance of the business (within four months where the discontinuance of the business is due to the death of the person liable for tax)), submit to the head of the designated city, etc. in which that office or place of business is located a return, in the form specified by Order of the Ministry of Internal Affairs and Communications, stating the tax base amount and tax amount of business office tax for the taxable period relating to the individual and other necessary matters, and pay the declared tax amount to that designated city, etc.

The tax base amount referred to in the preceding paragraph is, for the asset levy, the total of the office floor areas that are to be the tax base of the asset levy for each office or place of business that the individual has or had within the area of that designated city, etc. during the taxable period relating to that individual, and, for the worker levy, the total of the total salaries of workers that are to be the tax base of the worker levy for each such office or place of business.

The head of a designated city, etc. may, as provided by the Municipal Ordinance of that designated city, etc., have an individual who conducts business at an office or place of business and has no business office tax amount to be paid for the taxable period relating to that individual submit a return in accordance with the provisions of paragraph (1).

A person who is to submit a return under Article 701-46 or Article 701-47 may, even after the deadline for filing that return, until the notice of determination under Article 701-58, paragraph (4) is given, file and pay under Article 701-46 or Article 701-47.

A person who has submitted a return or amended return under Article 701-46, Article 701-47, the preceding paragraph or this paragraph, or who has received a reassessment or determination under Article 701-58, must, if there is a shortfall in the tax base amount (meaning the tax base amount under Article 701-46, paragraph (2) or Article 701-47, paragraph (2); the same applies hereinafter in this Section) or the tax amount relating to that return or amended return or that reassessment or determination, without delay submit to the head of the designated city, etc. an amended return in the form specified by Order of the Ministry of Internal Affairs and Communications and pay the tax amount increased by that amendment to that designated city, etc.

A designated city, etc. may, in the case where a person liable for business office tax fails, without justifiable grounds, to submit a return under Article 701-46, paragraph (1) or (3) or Article 701-47, paragraph (1) or (3) by the deadline for filing the return prescribed in those paragraphs, provide, in the Municipal Ordinance of that designated city, etc., for the imposition on that person of a non-penal fine of not more than 100,000 yen.

A person who has newly established or discontinued an office or place of business within the area of a designated city, etc. must, as provided by the Municipal Ordinance of that designated city, etc., report that fact and other necessary matters to the head of the designated city, etc. in which that office or place of business is located.

A person who leases a building for use as an office to a person liable for business office tax must, as provided by the Municipal Ordinance of that designated city, etc., report the floor area of that building and other necessary matters to the head of the designated city, etc. in which that building is located.

When a person makes a false report on a matter to be reported under 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.

Where the provisions of the preceding paragraph apply to an association or foundation without juridical personality, in addition to the representative or administrator of the association or foundation without juridical personality representing it in its procedural acts, the provisions of laws and regulations concerning criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

A designated city, etc. may, in the case where a person who is to report under Article 701-52 fails, without justifiable grounds, to report a matter to be reported under that Article, provide, in the Municipal Ordinance of that designated city, etc., for the imposition on that person of a non-penal fine of not more than 100,000 yen.

Where the head of a designated city, etc., for the assessment and collection of business office tax, requests the government to allow inspection or recording of returns or amended returns submitted to the government by a person liable for business office tax who is also liable for income tax or corporation tax, or of documents concerning a reassessment or determination made by the government on the tax base or tax amount of income tax or corporation tax of that person liable for tax, the government is to allow the head of the designated city, etc. or an official designated by the head to inspect or record the relevant documents.

Where the head of a designated city, etc., for the assessment and collection of business office tax, requests the prefectural governor to allow inspection or recording of returns or amended returns submitted to the prefectural governor by a person liable for business office tax who is also liable for enterprise tax, or of documents concerning a reassessment, determination or assessment determination made by the prefectural governor on the enterprise tax relating to that person liable for tax, or an assessment determination made on real property acquisition tax relating to a person liable for business office tax who is also liable for real property acquisition tax, the prefectural governor is to allow the head of the designated city, etc. or an official designated by the head to inspect or record the relevant documents.

If a person evades all or part of business office tax by deception or other wrongful acts, 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 1,000,000 yen, or both.

Where the amount of tax evaded as referred to in the preceding paragraph exceeds 1,000,000 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 1,000,000 yen and not exceeding the amount equivalent to the amount of tax evaded.

In addition to what is prescribed in paragraph (1), if a person evades all or part of business office tax by failing to submit a return under Article 701-46, paragraph (1) or Article 701-47, paragraph (1) by the deadline for filing the return prescribed in those paragraphs, the person who committed the violation is to be punished by imprisonment for not more than three 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) or (3) 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.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of prescription is the same as that for the offense referred to in paragraph (1).

When paragraph (5) applies to an association or foundation without juridical personality, its representative or administrator represents that association or foundation without juridical personality 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.

The head of a designated city, etc. may reduce or exempt business office tax, as provided by the Municipal Ordinance of that designated city, etc., only for a person for whom the head finds a reduction or exemption of business office tax necessary where there are special circumstances such as a natural disaster, and for other persons with special circumstances.

Where a return under Article 701-46 or Article 701-47 (hereinafter in this Section referred to as a "return") or an amended return under Article 701-49, paragraph (2) (hereinafter in this Section referred to as an "amended return") has been submitted, the head of a designated city, etc. is to make a reassessment if the tax base amount or tax amount relating to that return or amended return differs from what the head has found by investigation.

Where a person who is to submit a return has not submitted it, the head of a designated city, etc. is to determine, by investigation, the tax base amount and tax amount that are to be declared.

Where the head of a designated city, etc. finds that there is an excess or shortfall in the tax base amount or tax amount reassessed under paragraph (1) or this paragraph or determined under the preceding paragraph, the head is to make a reassessment by investigation.

Where the head of a designated city, etc. has made a reassessment or determination under the preceding three paragraphs, the head must, without delay, notify the taxpayer of it.

Where a reassessment or determination under Article 701-58, paragraphs (1) to (3) has been made and there is a tax deficiency (meaning the tax deficiency due to reassessment or the tax amount due to determination; the same applies hereinafter in this Section), a tax collection official of a designated city, etc. must collect it, with the day on which one month elapses from the day on which the notice under Article 701-58, paragraph (4) was given as the due date for payment.

In the case of 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 referred to in the preceding paragraph or the period up to the day on which one month elapses 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 701-46, paragraph (1) or Article 701-47, paragraph (1) (where the due date for payment has been extended, the extended due date for payment; referred to as the "due date for payment of business office tax" in the following Article) to the day of payment, must be added to it and collected.

The head of a designated city, etc. may reduce or exempt the amount of delinquency charge under the preceding paragraph if the head finds that there are unavoidable grounds for the taxpayer having received a reassessment or determination under paragraphs (1) to (3) of the preceding Article.