Local Tax Act

When the Minister for Internal Affairs and Communications is to have an official designated by the Minister for Internal Affairs and Communications conduct, in an on-site examination of a person listed in paragraph (1), item (i) of the preceding Article (hereinafter in this Article through Article 396-4 referred to as a "person liable for tax"), the questioning, inspection or request for presentation or submission under the preceding Article (hereinafter in this Article and Article 396-4 referred to as "questioning, inspection, etc."), the Minister is to notify in advance that person liable for tax (including, where that person liable for tax has a tax representative (meaning a certified public tax accountant or certified public tax accountant corporation that has submitted the document under Article 30 of the Certified Public Tax Accountant Act (including as applied mutatis mutandis pursuant to Article 48-16 of that Act), an attorney who has given the notice under Article 51, paragraph (1) of that Act, or an attorney corporation or joint corporation of attorneys and registered foreign lawyers that has given the notice under paragraph (3) of that Article; the same applies hereinafter in this Subsection), that tax representative) of that fact and of the following matters.

the date and time of commencement of the on-site examination in which questioning, inspection, etc. are to be conducted (hereinafter in this paragraph and paragraph (3) simply referred to as the "examination");

the place where the examination is to be conducted;

the purpose of the examination;

that it is an examination concerning fixed assets tax;

the period subject to the examination;

the books and documents or other articles subject to the examination;

other matters specified by Cabinet Order as necessary for the proper and smooth conduct of the examination.

Where a person liable for tax who has received notice under the preceding paragraph requests, giving reasonable grounds, a change to the matters listed in item (i) or (ii) of that paragraph, the Minister for Internal Affairs and Communications is to endeavor to consult on those matters.

The provisions of paragraph (1) do not preclude an official designated by the Minister for Internal Affairs and Communications from conducting questioning, inspection, etc. concerning matters other than those listed in items (iii) through (vi) of that paragraph relating to the examination, where, through that examination, it has become necessary to do so for the advice under Article 388, paragraph (4), item (ii), an examination concerning the determination of the price, etc. of fixed assets under Article 389, paragraph (1), or the instruction under Article 422-2, paragraph (1). In this case, the provisions of paragraph (1) do not apply to questioning, inspection, etc. concerning those matters.

Where a person liable for tax has a tax representative, and the case falls under those specified by Ministerial Order as cases where the person liable for tax has consented, it suffices to give the notice under paragraph (1) to that person liable for tax by giving it to that tax representative.

Where a person liable for tax has several tax representatives, and the case falls under those specified by Ministerial Order as cases where the person liable for tax has designated a representative tax representative from among those tax representatives, it suffices to give the notice under paragraph (1) to those tax representatives by giving it to that representative tax representative.

Notwithstanding paragraph (1) of the preceding Article, where the Minister for Internal Affairs and Communications finds, in light of information held by the Minister, such as the content of the results of past examinations of the person liable for tax who is the subject of the examination or information on the content of the business the person conducts, that there is a risk of facilitating unlawful or improper acts or making it difficult to ascertain accurate facts, or any other risk of hindering the proper conduct of examinations concerning fixed assets tax, notice under that paragraph is not required.

Where the examination is an examination for the advice under Article 388, paragraph (4), item (ii), the Minister for Internal Affairs and Communications is to notify that person liable for tax in writing, upon conclusion of that examination, that the examination has concluded.

Where the examination is an examination concerning the determination of the price, etc. of fixed assets under Article 389, paragraph (1), and, as a result of an on-site examination, determination of the price, etc. or revision of a determined price, etc. (hereinafter in this paragraph and the following paragraph referred to as "setting, etc. of the price, etc.") is not found to be warranted, the Minister for Internal Affairs and Communications is to notify in writing a person liable for tax who became the subject of questioning, inspection, etc. in that on-site examination that, at that point in time, setting, etc. of the price, etc. is not found to be warranted.

In the case prescribed in the preceding paragraph, where, as a result of the examination, setting, etc. of the price, etc. is found to be warranted, the Minister for Internal Affairs and Communications is to explain to that person liable for tax that, at that point in time, setting, etc. of the price, etc. is found to be warranted, and the reasons.

Where the examination is an examination for the instruction under Article 422-2, paragraph (1), and, as a result of an on-site examination, the determination of the price of fixed assets in the municipality is found to be carried out in accordance with the fixed asset valuation standards, the Minister for Internal Affairs and Communications is to notify in writing a person liable for tax who became the subject of questioning, inspection, etc. in that on-site examination that, at that point in time, the determination of the price of fixed assets in the municipality is found to be carried out in accordance with the fixed asset valuation standards.

In the case prescribed in the preceding paragraph, where, as a result of the examination, the determination of the price of fixed assets in the municipality is found not to be carried out in accordance with the fixed asset valuation standards, the Minister for Internal Affairs and Communications is to explain to that person liable for tax that, at that point in time, the determination of the price of fixed assets in the municipality is found not to be carried out in accordance with the fixed asset valuation standards, and the reasons.

Where a person liable for tax with respect to whom questioning, inspection, etc. were conducted in an on-site examination has a tax representative, and the person liable for tax has consented, the notice or explanation under the preceding paragraphs may be given to that tax representative in lieu of the notice or explanation under those paragraphs to the person liable for tax.

In addition to what is provided for in Article 396 through the preceding Article, matters necessary for the conduct of examinations concerning fixed assets tax by officials of the Ministry of Internal Affairs and Communications are specified by Cabinet Order.

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:

when the person refuses, obstructs or evades inspection of books and documents or other articles under Article 396;

when the person fails, without justifiable grounds, to comply with a request for presentation or submission of articles under Article 396, paragraph (1), or presents or submits books and documents or other articles (including copies thereof) containing false entries or records;

when the person fails to give an answer to a question by a designated prefectural official or an official designated by the Minister for Internal Affairs and Communications under Article 396, or gives a false answer.

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 prefectural governor or the Minister for Internal Affairs and Communications has made a ruling on a request for review concerning the determination or distribution of the price, etc. under Article 389, paragraph (1), the governor or the Minister must notify the mayor of the relevant municipality to that effect within 10 days from the date of the ruling.

Where the mayor of a municipality has received notice under the preceding Article, the mayor must, within 10 days from the date of receiving the notice, register in the fixed assets tax ledger the price, etc. under the determination made by the prefectural governor or the Minister for Internal Affairs and Communications.

Where the mayor of a municipality has registered the price, etc. of fixed assets under the preceding paragraph, the mayor must, even after the assessment of fixed assets tax, reassess the assessed amount already determined on the basis of the registered price, etc.

Where the mayor of a municipality has received notice under Article 743 or Article 744, the mayor must, without delay, register in the fixed assets tax ledger the price, etc. of the depreciable assets covered by the notice and the amount to serve as the tax base for fixed assets tax imposed by the municipality, or amend those matters already registered and register them.

Where the mayor of a municipality has amended and registered the amount to serve as the tax base for fixed assets tax imposed by the municipality under the preceding paragraph, the mayor must, even after the assessment of fixed assets tax, reassess the assessed amount already determined on the basis of the registered amount.

The prefectural governor must provide the mayors of municipalities with the following assistance regarding the valuation of fixed assets:

giving advice on the fixed asset valuation standards under Article 388, paragraph (1);

conducting training of fixed asset valuers;

giving advice on how to use the materials prepared by the Minister for Internal Affairs and Communications;

giving advice, where the mayor of a municipality seeks advice on the valuation of fixed assets that it is extremely difficult for the municipality's fixed asset valuers to value;

giving advice on the determination of the price of fixed assets pursuant to Article 73-21, paragraph (4).

A prefectural fixed asset valuation council is to be established in each prefecture.

The prefectural fixed asset valuation council is to investigate and deliberate on the matters listed in the items of the following paragraph and other matters concerning the valuation of fixed assets on which the prefectural governor seeks its opinion.

The prefectural governor must hear the opinion of the prefectural fixed asset valuation council on the matters listed in the following items:

matters concerning the details of the fixed asset valuation standards under Article 388, paragraph (1) that the prefectural governor determines;

the recommendation under Article 419, paragraph (1).

The members of the prefectural fixed asset valuation council are appointed by the prefectural governor from among officials of the relevant local administrative organs of the national government, officials of the prefecture, officials of municipalities within the area of the prefecture, and persons with knowledge and experience in the valuation of fixed assets.

In addition to what is provided for in the preceding paragraph, matters necessary for the organization and operation of the prefectural fixed asset valuation council are provided for by the Prefectural Ordinance of that prefecture.

The provisions of Article 388 or Article 401 must not be construed as granting the Minister for Internal Affairs and Communications or the prefectural governor the authority to direct municipal tax collection officials or fixed asset valuers.

The mayor of a municipality must determine the price of fixed assets in accordance with the fixed asset valuation standards under Article 388, paragraph (1), except where the prefectural governor or the Minister for Internal Affairs and Communications values fixed assets under Article 389 or Article 743.

Municipal officials engaged in affairs relating to the valuation of fixed assets must endeavor to make a fair valuation on the advice of the Minister for Internal Affairs and Communications and the prefectural governor and by every means, such as on-site examinations conducted together with taxpayers, questioning of taxpayers, and examination of taxpayers' returns.