Local Tax Act

Where a corporation has filed a petition prescribed in a tax treaty prescribed in Article 139, paragraph (1) of the Corporation Tax Act (hereinafter in this paragraph referred to as a "tax treaty") with the Commissioner of the National Tax Agency under the provisions of that tax treaty (limited to a petition in a case where Article 66-4, paragraph (1), Article 66-4-3, paragraph (1) or Article 67-18, paragraph (1) of the Act on Special Measures Concerning Taxation applies; the same applies hereinafter in this paragraph) (referred to in the following Article as a "case where a petition has been filed with the Commissioner of the National Tax Agency"), or has filed a petition prescribed in that tax treaty with the competent authority of a contracting state or contracting party of the tax treaty other than Japan (hereinafter in this paragraph referred to as a "treaty partner state, etc.") and the competent authority of the treaty partner state, etc. has made a request for the consultations prescribed in the tax treaty with that treaty partner state, etc. (hereinafter in this paragraph and the following Article referred to as a "mutual agreement procedure") (referred to in the following Article as a "case where a petition has been filed with the competent authority of a treaty partner state, etc."), the prefectural governor may, upon application by the person who has filed those petitions, defer the collection, up to the limit of the total of the income levy amount or value-added levy amount to be filed and paid under Article 72-31, paragraph (3) on the basis of the income taken as the tax base for the corporation tax amount (limited to one that is subject to the mutual agreement procedure pertaining to those petitions; the same applies hereinafter in this paragraph and paragraph (1) of the following Article) pertaining to the reassessment or determination listed in Article 66-4, paragraph (27), item (i) of the Act on Special Measures Concerning Taxation (including as applied mutatis mutandis in Article 66-4-3, paragraph (14) and Article 67-18, paragraph (13) of that Act; the same applies hereinafter in this paragraph and paragraph (1) of the following Article) pertaining to those petitions, or the income levy amount or value-added levy amount to be paid under that reassessment or determination in the case where the prefectural governor has made a reassessment or determination under paragraph (1) or (2) of the preceding Article or Article 72-41-2, paragraph (1) or (2) on the basis of the income taken as the tax base for the corporation tax amount pertaining to that reassessment or determination, and the amount calculated as provided by Cabinet Order as the additional charge for understatement, additional charge for failure to file and substantial additional charge pertaining to that income levy amount or value-added levy amount, only for the period from the due date for payment under Article 72-31, paragraph (3) or Article 72-44, paragraph (1) (where the application is made after that due date for payment, the day of the application) until the day on which one month has elapsed from the day following the day on which the reassessment was made (where there is no agreement or in other cases specified by Cabinet Order, the day specified by Cabinet Order) in the case where the prefectural governor has made a reassessment under paragraph (1) or (3) of the preceding Article or Article 72-41-2, paragraph (1) or (3) on the basis of the income taken as the tax base for the corporation tax amount pertaining to a reassessment under Article 26 of the Act on General Rules for National Taxes based on an agreement between the Commissioner of the National Tax Agency and the competent authority of that treaty partner state, etc. (referred to in paragraph (5) as the "period of deferral of collection"); provided, however, that this does not apply where, at the time of the application, the person making the application is in arrears in local taxes of that prefecture other than that income levy amount or value-added levy amount, the corporation tax levy amount to be filed and paid under Article 53, paragraph (35) on the basis of the corporation tax amount pertaining to the reassessment or determination listed in Article 66-4, paragraph (27), item (i) of the Act on Special Measures Concerning Taxation pertaining to those petitions, or the corporation tax levy amount to be paid under a reassessment or determination under Article 55, paragraph (1) or (2) made by the prefectural governor on the basis of the corporation tax amount pertaining to that reassessment or determination.

In deferring collection under the preceding paragraph (hereinafter in this Article referred to as "deferral of collection"), the prefectural governor must, as provided by Cabinet Order, take security listed in the items of Article 16, paragraph (1) in an amount equivalent to the amount of the deferral; provided, however, that this does not apply where the amount of tax pertaining to the deferral is 1,000,000 yen or less, where the period of the deferral does not exceed three months, or where there are special circumstances in which security cannot be taken.

The provisions of Article 15-2-2, Article 15-2-3, Article 16-2, paragraphs (1) through (3) and Article 18-2, paragraph (4) apply mutatis mutandis to deferral of collection, and the provisions of Article 11, Article 16, paragraphs (2) and (3), Article 16-2, paragraph (4) and Article 16-5, paragraphs (1) and (2) apply mutatis mutandis to the security under the preceding paragraph, respectively.

Where a person who has received deferral of collection falls under any of the following items, the prefectural governor may revoke the deferral of collection. In this case, the provisions of Article 15-3, paragraphs (2) and (3) apply mutatis mutandis.

where the petition referred to in paragraph (1) has been withdrawn;

where there is a fact falling under any of the items of Article 13-2, paragraph (1) and it is found that the person will be unable to pay in full the income levy amount or value-added levy amount pertaining to the deferral within the period of the deferral;

where the person fails to comply with a request of the prefectural governor concerning the provision or change of security under Article 16, paragraph (3) as applied mutatis mutandis in the preceding paragraph, or other acts necessary to secure the security;

where the person newly falls into arrears in local government levies relating to that prefecture other than the income levy amount or value-added levy amount pertaining to the deferral (excluding where the prefectural governor finds that there are unavoidable reasons);

if, owing to a change in the financial condition of the person who has received the deferral of collection or in other circumstances, it is found inappropriate to continue the deferral.

Where deferral of collection has been granted, the portion of the amount of delinquency charge on the income levy or value-added levy so deferred that corresponds to the period of deferral of collection (including, where the application referred to in paragraph (1) is made on or before the due date for payment referred to in that paragraph, the period from the day of that application, as the first day for the calculation, to that due date for payment) is to be waived; provided, however, that where a fact arises that should constitute grounds for revocation under the preceding paragraph, the prefectural governor may refrain from waiving the portion corresponding to the period after the day on which it arose.

Necessary matters concerning the procedures for an application for deferral of collection are specified by Cabinet Order.

In a case where a petition has been filed with the Commissioner of the National Tax Agency or a case where a petition has been filed with the competent authority of a treaty partner state, etc., the Commissioner of the National Tax Agency must without delay notify the prefectural governor for the location of the office or place of business of the corporation that filed those petitions (for a corporation that has offices or places of business in two or more prefectures, its principal office or place of business; the same applies in the following paragraph and paragraph (3)) of that fact, the income taken as the tax base for the corporation tax amount pertaining to the reassessment or determination listed in Article 66-4, paragraph (27), item (i) of the Act on Special Measures Concerning Taxation pertaining to those petitions, and other particulars specified by Order of the Ministry of Internal Affairs and Communications.

In a case where a petition has been filed with the Commissioner of the National Tax Agency or a case where a petition has been filed with the competent authority of a treaty partner state, etc., where, in the mutual agreement procedure pertaining to those petitions, there has come to be no agreement prescribed in paragraph (1) of the preceding Article or another case specified by Cabinet Order, the Commissioner of the National Tax Agency must without delay notify the prefectural governor for the location of the office or place of business of the corporation that filed those petitions of that fact and other particulars specified by Order of the Ministry of Internal Affairs and Communications.

In a case where a petition has been filed with the Commissioner of the National Tax Agency or a case where a petition has been filed with the competent authority of a treaty partner state, etc., where the agreement prescribed in paragraph (1) of the preceding Article has been reached in the mutual agreement procedure pertaining to those petitions, the Commissioner of the National Tax Agency must without delay notify the prefectural governor for the location of the office or place of business of the corporation that filed those petitions of that fact, the income taken as the tax base for the corporation tax amount pertaining to a reassessment under Article 26 of the Act on General Rules for National Taxes based on that agreement, and other particulars specified by Order of the Ministry of Internal Affairs and Communications.

The prefectural governor of the location of the principal office or place of business who has received the notification under the preceding three paragraphs must, without delay, notify the governors of the relevant prefectures of the matters prescribed in those provisions.

In the following cases, the prefectural governor may request a tax office of the national government (hereinafter referred to as a "national tax office") to make a reassessment or determination concerning corporation tax, by attaching a document stating the grounds on which the reassessment or determination should be made. In this case, if that national tax office does not make the reassessment or determination, without justifiable grounds, within three months from the day on which it received the request for reassessment or determination, the prefectural governor may request the national tax office that supervises that national tax office to make the reassessment or determination.

where a corporation referred to in Article 72-39, paragraph (1) has submitted a return or an amended return and, with respect to the corporation tax base for the business year that formed the basis for calculating the income levy of a corporation whose income pertaining to that filing or amended return is found to be understated, no reassessment or determination of corporation tax has been made by the day on which one year has elapsed from the deadline for filing that return (or, where any of the grounds listed in the items of Article 13-2, paragraph (1) has occurred, the day on which that ground occurred);

where a corporation referred to in Article 72-39, paragraph (1) has not submitted a return by the deadline for filing the return (excluding the case where a return is deemed to have been submitted under Article 72-26, paragraph (5)), and, with respect to the corporation tax base for the business year that formed the basis for calculating the income levy of that corporation, that corporation has not submitted a return under Article 74, paragraph (1) or Article 144-6, paragraph (1) of the Corporation Tax Act (including a return filed after the due date for payment pertaining to it), and no determination of corporation tax has been made by the day on which one year has elapsed from the deadline for filing the return pertaining to the income levy of that corporation (or, where any of the grounds listed in the items of Article 13-2, paragraph (1) has occurred, the day on which that ground occurred);

where the prefectural governor has reassessed or determined, under Article 72-39, the income or the income levy amount for the income levy of a corporation referred to in paragraph (1) of that Article and, with respect to the corporation tax base for the business year that formed the basis for calculating the income levy of a corporation whose income pertaining to that reassessment or determination is found to be understated, no reassessment of corporation tax has been made by the day on which one year has elapsed from the day on which the income or the income levy amount for the income levy of that corporation was reassessed or determined (or, where any of the grounds listed in the items of Article 13-2, paragraph (1) has occurred, the day on which that ground occurred).

With regard to the corporation tax base of a corporation that conducts business with offices or places of business established in two or more prefectures, a request for reassessment or determination to be made to a national tax office under the preceding paragraph is to be made by the prefectural governor for the location of the principal office or place of business of that corporation (for a foreign corporation, the prefectural governor for the location of the office or place of business where the person responsible for managing the business conducted in the area where this Act is enforced mainly performs duties), or by the relevant prefectural governor through the prefectural governor for the location of the principal office or place of business of that corporation.