Local Tax Act

A person liable to pay light motor vehicle tax must submit to the mayor of the municipality, as provided by the Municipal Ordinance of the municipality concerned, in the form specified by Order of the Ministry of Internal Affairs and Communications, a return or report stating the matters necessary for the assessment and collection of light motor vehicle tax.

A seller of light motor vehicles, etc. prescribed in Article 444, paragraph (1) must, as provided by the Municipal Ordinance of the municipality concerned, if requested by the mayor of the municipality on the ground that the address or residence of the buyer of those light motor vehicles, etc. is unknown, report the address or residence of the buyer and other matters necessary for the assessment and collection of light motor vehicle tax imposed on those light motor vehicles, etc.

If a person makes a false return or report on matters to be declared or reported under the preceding Article, the person who committed the violation is punished by a fine of not more than 300,000 yen.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or person, has committed a violation under the preceding paragraph in connection with the business or property of that corporation or person, in addition to punishing the offender, the penalty prescribed in that paragraph is to be imposed on that corporation or person.

A municipality may establish, in its Municipal Ordinance, a provision imposing a non-penal fine of 100,000 yen or less on a person liable to pay light motor vehicle tax or a seller of light motor vehicles, etc. prescribed in Article 444, paragraph (1) if that person, without justifiable grounds, fails to file a return or report on matters to be declared or reported under Article 452.

If a person evades all or part of light motor vehicle tax by deception or other wrongful acts, the person who committed the violation is punished by a fine of not more than 1,000,000 yen.

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 light motor vehicle tax by failing to file a return or make a report on matters to be returned or reported pursuant to Article 452, paragraph (1), the person who committed the violation is to be punished by a fine of not more than 500,000 yen.

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 person, commits 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 penalty prescribed in the relevant paragraph is imposed on that corporation or person.

The mayor of the municipality may reduce or exempt light motor vehicle tax, as provided by the Municipal Ordinance of that municipality, only for a person whom the mayor finds to require a reduction or exemption of light motor vehicle tax where there is a natural disaster or other special circumstances, a person who receives public or private assistance for living due to poverty, and any other person in special circumstances.

A taxpayer of light motor vehicle tax who pays the tax after the due date for payment under Article 450 (if the due date for payment has been extended, the extended due date for payment; the same applies hereinafter in this Article, paragraph (1) of the following Article and Article 460) must pay it with an amount of delinquency charge added, equivalent to the amount calculated by multiplying the tax amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period until the day on which one month has passed from the day following that due date for payment) in accordance with the number of days in the period from the day following the due date for payment until the date of payment.

The mayor of the municipality may reduce or exempt the amount of delinquency charge under the preceding paragraph if the mayor finds that there were unavoidable grounds for the taxpayer's failure to pay the tax by the due date for payment under Article 450.

If a taxpayer fails to pay in full the local government levies relating to light motor vehicle tax by the due date for payment, a municipal tax collection official must issue a demand letter within 20 days after the due date for payment; provided, however, that this does not apply in the case of advance collection.

A municipality with special circumstances may specify, by Municipal Ordinance of the municipality, a period different from the period prescribed in the preceding paragraph.

When a municipal tax collection official has issued a demand letter, the official may collect a fee in accordance with the Municipal Ordinance of that municipality.

If a person delinquent in payment of light motor vehicle tax falls under any one of the following items, a municipal tax collection official must seize the property of the person delinquent in payment with respect to the local government levies relating to that light motor vehicle tax:

if the person delinquent in payment has received a demand and has not paid in full the local government levies relating to the light motor vehicle tax subject to that demand by the day on which 10 days have elapsed, counting from the date on which the demand letter was issued;

if the person delinquent in payment has not paid in full the local government levies relating to light motor vehicle tax by the due date for payment specified in the notice relating to advance collection.

When the preceding paragraph is applied to a secondary taxpayer or guarantor, the term "demand letter" in item (i) of that paragraph is to read "written reminder to pay".

If, after the due date for payment of the local government levies relating to light motor vehicle tax and by the day on which the 10 days prescribed in paragraph (1), item (i) have elapsed, a fact falling under any one of the items of Article 13-2, paragraph (1) has arisen with respect to a person delinquent in payment who has received a demand, a municipal tax collection official may seize that person's property immediately.

Where compulsory liquidation procedures have been carried out with respect to the property of a person delinquent in payment, a municipal tax collection official must make a request for share distribution to the enforcement agency (in the case of making a request for share distribution for local government levies relating to light motor vehicle tax pertaining to a claim listed in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case pertaining to that request for share distribution) with respect to the local government levies relating to the light motor vehicle tax in arrears.

When a municipal tax collection official is able to make a seizure under paragraphs (1) through (3), and property of a person delinquent in payment set out in the items of Article 86, paragraph (1) of the National Tax Collection Act has already been seized in a delinquent tax collection procedure for other local government levies or national taxes, or by a disposition governed by the rules of those delinquent tax collection procedures, the request for share distribution for that property may be made by participatory seizure.

In addition to what is prescribed in the preceding paragraphs, delinquent tax collection procedures for local government levies relating to light motor vehicle tax are carried out in accordance with the rules for the delinquent tax collection procedure prescribed in the National Tax Collection Act.

A disposition under the preceding paragraphs may also be carried out outside the area of the municipality concerned.

If a taxpayer of light motor vehicle tax, for the purpose of evading the execution of delinquent tax collection procedures, conceals or damages the taxpayer's property, disposes of it to the detriment of the municipality, or commits an act of falsely increasing the burdens on that property, or alters its existing condition and thereby diminishes the value of that property or commits an act of increasing the expenses for the delinquent tax collection procedure relating to it, that person is to be punished by imprisonment for not more than three years or a fine of not more than 2,500,000 yen, or both.

The same applies where a third party in possession of the property of a taxpayer commits an act referred to in the preceding paragraph for the purpose of enabling the taxpayer to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the taxpayer or of the third party in possession of the property in an act referred to in the preceding two paragraphs, the person who committed the violation as the counterparty is to be punished by imprisonment for not more than two years or a fine of not more than 1,500,000 yen, or both.

If a representative of a corporation, or an agent, employee or other worker of a corporation or a person, commits a violation prescribed in the preceding three paragraphs in connection with the business or property of that corporation or person, then in addition to punishing the offender, the fine prescribed in the relevant paragraphs is imposed on that corporation or person.

In the case falling under any of the following items, the person who committed the violation is punished by a fine of not more than 300,000 yen:

in the case referred to in Article 460, paragraph (6), where a person fails to answer, or makes a false statement in response to, a question by a municipal tax collection official conducted in accordance with the rules of Article 141 of the National Tax Collection Act;

in the case referred to in Article 460, paragraph (6), where a person refuses, obstructs or evades an inspection by a municipal tax collection official, conducted in accordance with the rules of Article 141 of the National Tax Collection Act, of books and documents (meaning the books and documents prescribed in that Article; the same applies in the following item) or other articles;

in the case referred to in Article 460, paragraph (6), where a person, without justifiable grounds, fails to comply with a request by a municipal tax collection official, made in accordance with the rules of Article 141 of the National Tax Collection Act, for the presentation or submission of articles, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or person, has committed a violation under the preceding paragraph in connection with the business or property of that corporation or person, in addition to punishing the offender, the penalty prescribed in that paragraph is to be imposed on that corporation or person.

A person who, in the case referred to in Article 460, paragraph (6), makes a false statement on a matter to be stated to the mayor of the municipality in accordance with the rules of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis pursuant to Article 109, paragraph (4) of that Act) is to be punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.