Local Tax Act

Where there are local government levies that have been overpaid or paid by mistake (hereinafter in this Chapter referred to as an "overpayment or payment by mistake"), the head of a local government must refund them without delay, as provided by Cabinet Order.

Where a refund is to be made under the preceding Article, if there are local government levies that the person entitled to the refund has become liable to pay or remit (where the overpayment or payment by mistake relates to local government levies for which the obligation to pay or remit is an obligation covered by the trust property, limited to local government levies for which the obligation to pay or remit is that obligation covered by the trust property; and where the overpayment or payment by mistake does not relate to local government levies for which the obligation to pay or remit is an obligation covered by the trust property, limited to local government levies other than those for which the obligation to pay or remit is an obligation covered only by the trust property; the same applies hereinafter in this Article), the head of a local government must, notwithstanding the preceding Article, appropriate the overpayment or payment by mistake to those local government levies.

Where a prefecture has collected, under Article 739-5, paragraph (1) or (2) (including as applied mutatis mutandis pursuant to paragraph (8) of that Article; the same applies in paragraph (1), items (i) and (iii) of the following Article), together with local government levies relating to the individual prefectural inhabitant tax of that prefecture (limited to the per capita levy imposed on the persons listed in Article 24, paragraph (1), item (ii) and the income levy imposed pursuant to Article 50-2; the same applies hereinafter in this paragraph), local government levies relating to individual municipal inhabitant tax (limited to the per capita levy imposed on the persons listed in Article 294, paragraph (1), item (ii) and the income levy imposed pursuant to Article 328; the same applies hereinafter in this paragraph), or a municipality has collected, under Article 41, paragraph (1), together with local government levies relating to the individual municipal inhabitant tax of that municipality, local government levies relating to individual prefectural inhabitant tax, and there is an overpayment or payment by mistake of the taxpayer or special collection agent relating to the local government levies so collected together, the prefectural governor or the mayor of the municipality is to deem that overpayment or payment by mistake to be an overpayment or payment by mistake relating to the local government levies of that prefecture or municipality, respectively, and must appropriate it to the local government levies of the prefecture or municipality that the taxpayer or special collection agent has become liable to pay or remit, respectively.

In the cases referred to in the preceding two paragraphs, where the local government levies include a delinquency charge, the overpayment or payment by mistake must first be appropriated to the local tax that forms the basis for calculating the amount of the delinquency charge.

An appropriation under the preceding three paragraphs takes effect retroactively to the time specified by Cabinet Order as the time at which it became suitable to make the appropriation.

When the head of a local government has made an appropriation under paragraphs (1) through (3), the head must notify the taxpayer or special collection agent to that effect.

The preceding Article, and the provisions (limited to the parts relating to appropriation) of Article 72-88, paragraphs (2) and (3), Article 73-2, paragraph (9) (including as applied mutatis mutandis pursuant to Article 73-27, paragraph (2) and Article 73-27-4, paragraph (5)), Article 74-14, paragraph (3), Article 144-30, paragraph (2), Article 364, paragraph (6) (including as applied mutatis mutandis pursuant to Article 745, paragraph (1)), Article 477, paragraph (3), Article 601, paragraph (8) (including as applied mutatis mutandis pursuant to Article 602, paragraph (2), Article 603, paragraph (4), Article 603-2, paragraph (6), Article 603-2-2, paragraph (2) and Article 629, paragraph (8)), Article 706-2, paragraph (2), and the proviso to Article 718-10, paragraph (2), and other provisions specified by Cabinet Order, do not apply to a refund or overpayment or payment by mistake (hereinafter in this Article referred to as a "refund, etc.") falling under any of the following items:

an overpayment or payment by mistake relating to the following, collected together by a prefecture under Article 739-5, paragraph (1) or (2): local government levies relating to individual prefectural inhabitant tax (excluding the per capita levy imposed on the persons listed in Article 24, paragraph (1), item (ii) and the income levy imposed pursuant to Article 50-2; the same applies in the following item through item (iv)), local government levies relating to individual municipal inhabitant tax (excluding the per capita levy imposed on the persons listed in Article 294, paragraph (1), item (ii) and the income levy imposed pursuant to Article 328; the same applies in the following item through item (iv)), and collections relating to the forest environment tax (meaning collections relating to the forest environment tax prescribed in Article 2, item (v) of the Act on the Forest Environment Tax and the Forest Environment Transfer Tax (Act No. 3 of 2019); the same applies in the following item through item (iv)) (hereinafter in this item and the following paragraph referred to as an "overpayment or payment by mistake of prefectural collections"), where there are local government levies relating to that prefecture that the person entitled to the refund of it has become liable to pay or remit: that overpayment or payment by mistake of prefectural collections;

an overpayment or payment by mistake relating to local government levies relating to the individual municipal inhabitant tax collected by a municipality, local government levies relating to individual prefectural inhabitant tax collected together with them under Article 41, paragraph (1), and collections relating to the forest environment tax collected together with them under Article 7, paragraph (1) of the Act on the Forest Environment Tax and the Forest Environment Transfer Tax (hereinafter in this item and paragraph (3) referred to as an "overpayment or payment by mistake of municipal collections"), where there are local government levies relating to that municipality that the person entitled to the refund of it has become liable to pay or remit: that overpayment or payment by mistake of municipal collections;

a refund, etc. (excluding one falling under item (i)) relating to local government levies collected by a prefecture, where there are, in respect of the person entitled to that refund, etc., local government levies relating to the individual prefectural inhabitant tax, local government levies relating to the individual municipal inhabitant tax and collections relating to the forest environment tax that the prefecture is to collect together under Article 739-5, paragraph (1) or (2) and that the person has become liable to pay or remit (referred to in the following paragraph and paragraph (4) as "unpaid prefecture-collected sums"): that refund, etc.;

The refund, etc. (excluding that falling under item (ii)) of local government levies collected by a municipality, in the case where, in respect of the person entitled to receive the refund, there are local government levies relating to individual municipal inhabitant tax that the municipality is to collect and that have become payable or remittable, local government levies relating to individual prefectural inhabitant tax to be collected together therewith under Article 41, paragraph (1), and collections relating to the forest environment tax to be collected together with those under Article 7, paragraph (1) of the Act on the Forest Environment Tax and the Forest Environment Transfer Tax (Act No. 3 of 2019) (referred to as "unpaid municipal collections" in paragraphs (3) and (5)).

In the case prescribed in paragraph (1), item (i), a person entitled to receive a refund of overpayment or payment by mistake of prefectural collections is deemed to have entrusted the prefectural governor who is to make the refund with the payment or remittance of the unpaid prefecture-collected sums, or of other local government levies of that prefecture that have become payable or remittable, out of that overpayment or payment by mistake of prefectural collections (limited to an amount equivalent to the amount relating to the unpaid prefecture-collected sums or the amount relating to the other local government levies of that prefecture that have become payable or remittable).

In the case prescribed in paragraph (1), item (ii), a person entitled to receive a refund of overpayment or payment by mistake of municipal collections is deemed to have entrusted the mayor of the municipality who is to make the refund with the payment or remittance of the unpaid municipal collections, or of other local government levies of that municipality that have become payable or remittable, out of that overpayment or payment by mistake of municipal collections (limited to an amount equivalent to the amount relating to the unpaid municipal collections or the amount relating to the other local government levies of that municipality that have become payable or remittable).

In the case prescribed in paragraph (1), item (iii), a person entitled to receive the refund, etc. referred to in that item is deemed to have entrusted the prefectural governor who is to make the refund with the payment or remittance of the unpaid prefecture-collected sums out of that refund, etc. (limited to an amount equivalent to the amount relating to the unpaid prefecture-collected sums).

In the case prescribed in paragraph (1), item (iv), a person entitled to receive the refund, etc. referred to in that item is deemed to have entrusted the mayor of the municipality who is to make the refund with the payment or remittance of the unpaid municipal collections out of that refund, etc. (limited to an amount equivalent to the amount relating to the unpaid municipal collections).

Where paragraph (2) through the preceding paragraph apply, at the time specified by Cabinet Order as the time at which it becomes suitable to make the entrusted payment or entrusted remittance under those provisions, the refund and the payment or remittance of an amount equivalent to that entrusted payment or entrusted remittance are deemed to have been made.

Where paragraphs (2) through (5) apply, the prefectural governor or mayor of a municipality who made the payment or remittance under those provisions must without delay notify the person deemed to have made the entrustment under those provisions of that fact.