Local Tax Act

If a taxpayer of individual prefectural inhabitant tax or a special collection agent, with the purpose of evading the execution of delinquent tax collection procedures under the provisions of paragraph (1) or (2) of the preceding Article (including as applied mutatis mutandis pursuant to paragraph (8) of that Article; the same applies hereinafter in this Article), conceals or damages the person's property, disposes of it to the detriment of the prefecture and 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 who is in possession of the property of a taxpayer or special collection agent commits the act referred to in the preceding paragraph with the purpose of enabling the taxpayer or special collection agent to evade the execution of delinquent tax collection procedures under the provisions of paragraph (1) or (2) of the preceding Article.

If a person, knowing the circumstances, becomes the counterparty of a taxpayer or special collection agent, or of a third party in possession of that person's property, in an act referred to in the preceding two paragraphs, the person who committed the violation as that 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.

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:

if, in the case referred to in paragraph (1) or (2) of the preceding Article, the person fails to answer or makes a false statement in response to a question by a prefectural tax collection official conducted in accordance with the provisions of Article 141 of the National Tax Collection Act;

if, in the case referred to in paragraph (1) or (2) of the preceding Article, the person refuses, obstructs or evades an inspection by a prefectural tax collection official, conducted in accordance with the provisions 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;

if, in the case referred to in paragraph (1) or (2) of the preceding Article, the person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official for the presentation or submission of articles, made in accordance with the provisions of Article 141 of the National Tax Collection Act, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

In the case referred to in paragraph (1) or (2) of the preceding Article, a person who makes a false statement on a matter to be stated to the prefectural governor in accordance with the provisions 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.

Where a representative of a corporation (including an association or foundation without juridical personality for which a representative or administrator has been designated; the same applies hereinafter in this paragraph) (including a representative or administrator of that association or foundation), or an agent, employee or other worker of a corporation or a person, has committed a violation under paragraphs (1) to (4) 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.

Where the provisions of the preceding paragraph apply to an association or foundation without juridical personality for which a representative or administrator has been designated, that representative or administrator represents the association or foundation in respect of its procedural acts, and the provisions of laws and regulations on criminal proceedings where a corporation is the defendant or suspect apply mutatis mutandis.

A prefecture that encompasses a municipality in which large-scale depreciable assets (including newly built large-scale depreciable assets; the same applies hereinafter in this Section) are located (including a municipality in which large-scale depreciable assets come to be located as a result of allocation under the provisions of Article 389, paragraph (1); the same applies hereinafter in this Article) is to impose, as ordinary taxes, the taxes listed in the items of Article 4, paragraph (2) and, in addition, fixed assets tax on those large-scale depreciable assets, with the tax base being the portion of the value of those large-scale depreciable assets (meaning the amount that is to be the tax base of fixed assets tax pursuant to the provisions of Article 349-2, Article 349-3 or Article 349-3-4) exceeding the amount that is to be the tax base of fixed assets tax that the municipality in which those large-scale depreciable assets are located may impose pursuant to the provisions of Articles 349-4 and 349-5.

The standard tax rate of fixed assets tax imposed by a prefecture on large-scale depreciable assets is 1.4 percent.

The prefectural governor is to designate depreciable assets on which a prefecture is found to be required to impose fixed assets tax under the provisions of Article 740, except where those depreciable assets have been designated by the Minister for Internal Affairs and Communications under the provisions of Article 389, and must notify the owner of the depreciable assets and the mayor of the municipality where the depreciable assets are located to that effect without delay.

Where the mayor of a municipality finds that there are depreciable assets, other than those covered by the notice under the preceding paragraph, on which a prefecture is still to impose fixed assets tax under the provisions of Article 740, the mayor must notify the prefectural governor to that effect without delay.

Based on the notice of the mayor of the municipality under the preceding paragraph, the prefectural governor may designate, in addition to the designation under the provisions of paragraph (1), depreciable assets on which a prefecture is found to be required to impose fixed assets tax. In this case, the prefectural governor must notify the owner of the depreciable assets and the mayor of the municipality where the depreciable assets are located to that effect without delay.

For depreciable assets designated pursuant to the provisions of paragraph (1) or (3) of the preceding Article, the prefectural governor must, in and after the year following the year that includes the day of designation, after conducting a valuation at market value as of January 1 each year, determine the price, etc., and notify the person liable for tax and the mayor of the municipality where the depreciable assets are located of the determined price, etc. and the amount that is to be the tax base of fixed assets tax imposed by the prefecture, by March 31 each year; provided, however, that in the case of a disaster or other special circumstances, the notification may be made on or after April 1.

If the prefectural governor discovers that there is a material error in the price, etc. determined pursuant to the provisions of the preceding paragraph, the governor must immediately correct that price, etc., and notify the person liable for tax and the mayor of the municipality where the depreciable assets are located of the corrected price, etc. and the amount that is to be the tax base of fixed assets tax imposed by the prefecture, without delay.

When the prefectural governor has determined the price, etc. of depreciable assets pursuant to the provisions of paragraph (1), the governor must prepare a summary report of the results as provided by Order of the Ministry of Internal Affairs and Communications and send it to the Minister for Internal Affairs and Communications during April each year; provided, however, that where the notification was made on or after April 1 pursuant to the proviso to that paragraph, it must be sent within one month from the date of that notification.

When the prefectural governor has made a decision on a request for review concerning the determination of the price, etc. under the provisions of paragraph (1) or (2) of the preceding Article, the governor must notify the mayor of the relevant municipality to that effect without delay.

With respect to the assessment and collection, etc. of fixed assets tax imposed by a prefecture on large-scale depreciable assets, the provisions of Article 341, items (iv) and (v), Article 343, paragraph (1), Articles 353 through 359, Article 362, Article 364 (excluding paragraphs (3), (4) and (10)), Articles 364-2 through 367, Article 369, Articles 371 through 376, Article 383, Article 385, Article 386 and Article 403 apply mutatis mutandis, except as otherwise specially provided in this Section. In this case, the phrase "municipality" in those provisions is deemed to be replaced with "prefecture", and the phrase "mayor of the municipality" is deemed to be replaced with "prefectural governor".

If the prefectural governor discovers that there is a shortfall in the fixed assets tax amount of a person who is obliged to file a declaration with the mayor of a municipality or the prefectural governor pursuant to the provisions of Article 383 or Article 383 as applied mutatis mutandis pursuant to the preceding paragraph, or of a person who is obliged to file a declaration with the prefectural governor or the Minister for Internal Affairs and Communications pursuant to the provisions of Article 394, based on the determination or correction of the price of the depreciable assets under the provisions of Article 417 or Article 743, paragraph (2), because that person failed to file the declaration the person was required to file or filed a false declaration, the governor must immediately collect the shortfall by additional collection. In this case, if there is, among the shortfall, an amount that the mayor of the municipality may collect by additional collection pursuant to the provisions of the proviso to Article 368, paragraph (1), the amount to be collected by additional collection by the prefectural governor is the amount obtained by deducting from the shortfall the amount that the mayor of the municipality may collect.

The provisions of Article 368, paragraphs (2) and (3) apply mutatis mutandis where the prefectural governor collects a shortfall by additional collection pursuant to the provisions of the preceding paragraph. In this case, the phrase "municipal" in paragraph (2) of that Article is deemed to be replaced with "prefectural", and the phrase "mayor of the municipality" in paragraph (3) of that Article is deemed to be replaced with "prefectural governor".

The provisions of Articles 349-4 and 349-5 and Articles 740 through the preceding Article do not apply to fixed assets tax imposed on large-scale depreciable assets located in a city designated pursuant to the provisions of Article 252-19, paragraph (1) of the Local Autonomy Act on or after January 2 and on or before April 1, limited to the fixed assets tax for the fiscal year that includes April 1 of the year that includes the day of that designation (hereinafter referred to as the "designated day"). In this case, acts done by the prefectural governor or a prefectural tax collection official before the designated day concerning that fixed assets tax pursuant to the provisions of Article 743, paragraph (1) or (2) or Article 745, and acts done by a person liable for tax toward the prefectural governor, are deemed to be acts done by the head of that city or a tax collection official and acts done toward the head of that city pursuant to the provisions of Chapter III, Section 2; a request for review of the determination or revision of the price, etc. of those depreciable assets made before the designated day is deemed to be an application for review under the provisions of Article 432, paragraph (1); and a decision on that request for review made before the designated day is deemed to be a decision on review under the provisions of Article 433, paragraph (1).