Local Tax Act

A person who has filed a local tax return relating to filing and payment or filing and payment-in (hereinafter in this Article referred to as a "return") may, where, because the calculation of the tax base, etc. or tax amount, etc. stated in that return was not in accordance with the provisions of laws and regulations concerning local taxes or contained an error, any of the following items applies, only within five years from the statutory payment due date of the local tax relating to that return, request the head of the local government, as provided by Order of the Ministry of Internal Affairs and Communications, to make a reassessment of the tax base, etc. or tax amount, etc. relating to that filing (where a reassessment has been made of that tax base, etc. or tax amount, etc., the tax base, etc. or tax amount, etc. after that reassessment).

Where the tax amount to be paid or remitted by the filing of that return (where a reassessment has been made of that tax amount, the tax amount after that reassessment) is excessive;

Where the amount of deficit, etc. stated in that return (where a reassessment has been made of that amount, etc., the amount, etc. after that reassessment) is too small, or where no amount of deficit, etc. was stated in that return (where a reassessment has been made of that return, the written notice relating to that reassessment);

Where the tax amount equivalent to the amount of the refund under the provisions of this Act stated in that return (where a reassessment has been made of that tax amount, the tax amount after that reassessment) is too small, or where no tax amount equivalent to the amount of that refund was stated in that return (where a reassessment has been made of that return, the written notice relating to that reassessment).

A person who has filed a return, or a person who has received a determination of the tax base, etc. or tax amount, etc. to be stated in a return, may, where any of the following items applies (for a person who has filed a return, limited to the case where the day on which the period set forth in that item expires falls after the day on which the period prescribed in paragraph (1) expires), notwithstanding that paragraph, make a request for reassessment under that paragraph (except in Article 72-48-2, paragraph (5) and Article 72-50, paragraph (3), hereinafter referred to as a "request for reassessment") during the period set forth in that item, on the ground that that item applies.

Where it has become final, by a judgment on an action concerning the facts forming the basis for calculating the tax base, etc. or tax amount, etc. relating to the filing, reassessment or determination (including a settlement or other act having the same effect as a judgment), that those facts differ from those on which that calculation was based: within two months counting from the day following the day on which it became final;

Where, in calculating the tax base, etc. or tax amount, etc. relating to the filing, reassessment or determination, a reassessment, determination or assessment determination of a local tax has been made with respect to another person, treating income or any other object of taxation that had been regarded as attributable to the person who made the filing or received the determination as attributable to that other person: within two months counting from the day following the day on which that reassessment, determination or assessment determination was made;

Where there is any other unavoidable reason specified by Cabinet Order, similar to those in the preceding two items, that has arisen after the statutory payment due date of that local tax: within two months counting from the day following the day on which that reason arose.

A person who intends to make a request for reassessment must submit to the head of the local government a written request for reassessment stating the tax base, etc. or tax amount, etc. after the reassessment relating to the request, the reason for making the request for reassessment, the details of the circumstances leading to the request, the tax amount to be paid or remitted before the reassessment relating to the request, the tax amount equivalent to the amount of the refund under the provisions of this Act that is to be stated in the return, and other matters useful as reference.

When a request for reassessment has been made, the head of the local government must investigate the tax base, etc. or tax amount, etc. relating to the request, and either make a reassessment or notify the person who made the request that there is no ground for making a reassessment.

Even where a request for reassessment has been made, the head of the local government does not defer the collection of the local government levies relating to the local tax relating to the request; provided, however, that where the head of the local government finds that there is a reasonable ground, the head may defer the collection of the whole or part of those local government levies.

The tax base, etc. prescribed in paragraphs (1) through (4) means the tax base (for a local tax for which this Act or a Prefectural or Municipal Ordinance based on it provides for a tax base amount or a quantity to be the tax base, the tax base amount or the quantity to be the tax base) and the amounts deducted from it, and the amount of deficit, etc. (meaning the deductible deficit adjustment amount before application of group tax sharing prescribed in Article 53, paragraph (4) or Article 321-8, paragraph (4), the deductible pre-merger, etc. loss adjustment amount prescribed in Article 53, paragraph (9) or Article 321-8, paragraph (9), the deductible adjustment amount for income subject to group tax sharing prescribed in Article 53, paragraph (14) or Article 321-8, paragraph (14), the deductible allocated deficit adjustment amount prescribed in Article 53, paragraph (20) or Article 321-8, paragraph (20), the domestic corporation's refunded corporation tax eligible for deduction prescribed in Article 53, paragraph (23), item (i) or Article 321-8, paragraph (23), item (i), the deductible refunded corporation tax on a foreign corporation's income attributable to a permanent establishment prescribed in Article 53, paragraph (23), item (ii) or Article 321-8, paragraph (23), item (ii), the deductible refunded corporation tax on a foreign corporation's income not attributable to a permanent establishment prescribed in Article 53, paragraph (23), item (iii) or Article 321-8, paragraph (23), item (iii), or the deductible adjustment amount for deficit eligible for a refund prescribed in Article 53, paragraph (27) or Article 321-8, paragraph (27), that can be carried forward in sequence and deducted, under the provisions of this Act or Cabinet Order based on it, in calculating the corporation tax amount forming the tax base of the corporation tax levy of prefectural inhabitant tax or municipal inhabitant tax for business years after the relevant business year; or the amount of deficit that can be carried forward in sequence and deducted, under the provisions of this Act or Cabinet Order based on it, in calculating the income forming the tax base of the income levy of enterprise tax imposed on the business conducted by a corporation for business years after the relevant business year), and the tax amount, etc. prescribed in those paragraphs means the tax amount to be paid or remitted and the amounts deducted in calculating it, and the tax amount equivalent to the amount of the refund under the provisions of this Act that is to be stated in the return and the tax amount forming the basis for calculating it.

Where the amount of a delinquency charge is calculated under the provisions of this Act and part of the local tax forming the basis of the calculation has been paid or remitted, the tax amount forming the basis for calculating the amount of the delinquency charge for the period on or after the day following the day of that payment or remittance is the amount obtained by deducting the tax amount so paid or remitted.

Where under the provisions of this Act a taxpayer or special collection agent is to pay or remit a delinquency charge added to the local tax forming the basis for calculating its amount, until the amount paid or remitted by the taxpayer or special collection agent reaches the amount of the local tax forming the basis for calculating the delinquency charge, the amount so paid or remitted is deemed to have been first appropriated to the local tax forming the basis of the calculation.