Local Tax Act

If a taxpayer of business office tax, for the purpose of evading the execution of a delinquent tax collection procedure, conceals or damages property, disposes of it to the detriment of the designated city, etc., falsely increases the encumbrances on it, or alters its condition so as to reduce its value, or increases the expenses for the delinquent tax collection procedure relating to that delinquent tax collection procedure, 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.

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.

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:

In the case of Article 701-65, paragraph (6), when a person fails to answer, or makes a false statement in response to, questions put by a tax collection official of the designated city, etc. in accordance with the rules of Article 141 of the National Tax Collection Act.

In the case of Article 701-65, paragraph (6), when a person refuses, obstructs or evades an inspection by a tax collection official of the designated city, etc., 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 Article 141 of that Act; the same applies in the following item) or other articles.

In the case of Article 701-65, paragraph (6), when a person, without justifiable grounds, fails to comply with a request by a tax collection official of the designated city, etc., made in accordance with the rules of Article 141 of the National Tax Collection Act, to present or submit 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 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.

In the case of Article 701-65, paragraph (6), a person who makes a false statement on a matter that is to be stated to the head of the designated city, etc. in accordance with the rules of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis under 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.

A designated city, etc. must apply the amount obtained by deducting, from an amount equivalent to the amount of business office tax paid to that designated city, etc., the amount specified by Order of the Ministry of Internal Affairs and Communications as the cost of collecting the business office tax, to the costs of the following projects.

Projects for the development of transportation facilities such as roads, urban high-speed railways and parking lots

Projects for the development of public open spaces such as parks and green spaces

Projects for the development of supply facilities or treatment facilities such as water supply, sewerage and waste treatment facilities

Projects for the development of rivers and other waterways

Projects for the development of educational and cultural facilities such as schools and libraries

Projects for the development of medical facilities or social welfare facilities such as hospitals and day care centers

Projects relating to pollution prevention

Projects relating to disaster prevention

In addition to what is set forth in the preceding items, projects specified by Cabinet Order that are necessary for the development and improvement of the urban environment, such as urban area development projects

Special provisions concerning the application of the provisions of this Section to the amount of business office tax where, in the case where a city that was a designated city, etc. has ceased to fall under a designated city, etc., there is an amount of business office tax to be filed and paid to that designated city, etc. at the time it so ceased to fall under it, and other transitional measures necessary for the assessment and collection of business office tax in the case where a city that was a designated city, etc. has ceased to fall under a designated city, etc., a city that does not fall under a designated city, etc. has newly become a designated city, etc., or there has been an abolition, establishment, division or merger of, or a change in the boundaries of, the area of a designated city, etc., are specified by Cabinet Order.