Local Tax Act

Where a remittance return has been submitted by the deadline for filing it (including the case where it was submitted after the deadline for filing and the proviso to the following paragraph or paragraph (8) applies; the same applies hereinafter in this paragraph) and a reassessment has been made pursuant to Article 701-9, paragraph (1) or (3), the mayor of the municipality must, if the mayor finds that there is no justifiable reason for the error in the tax base amount or tax amount relating to the remittance return before the reassessment, collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the shortfall amount resulting from the reassessment (hereinafter in this paragraph referred to as the "covered shortfall") by 10 percent (where the covered shortfall (where a reassessment relating to the bathing tax concerned was made before that reassessment, the amount obtained by adding the total of the shortfall amounts resulting from those reassessments (where it was found that there was a justifiable reason for the error in the tax base amount or tax amount relating to the remittance return before that reassessment, the amount obtained by deducting the shortfall amount resulting from that reassessment, and where, with respect to the bathing tax, a reassessment reducing the amount to be remitted, or an alteration of the original disposition by a ruling or judgment on a request for review or an action relating to a reassessment, has been made, the amount obtained by deducting the amount equivalent to the portion reduced thereby)) exceeds the greater of the amount equivalent to the tax amount relating to the remittance return where it was submitted by the deadline for filing and 500,000 yen, the amount obtained by adding the amount calculated by multiplying the amount equivalent to the excess portion (where the covered shortfall is less than the amount equivalent to the excess portion, the covered shortfall) by 5 percent).

In the case falling under any of the following items, the mayor of the municipality must collect the amount of additional charge for failure to file equivalent to the amount calculated by multiplying the tax amount to be remitted by the remittance return, determination or reassessment prescribed in that item by a rate of 15 percent; provided, however, that this does not apply where it is found that there were justifiable grounds for the remittance return not having been submitted by the deadline for filing it.

where the remittance return was submitted after the deadline for filing, or where a determination was made pursuant to Article 701-9, paragraph (2);

where, after the remittance return was submitted after the deadline for filing, a reassessment was made pursuant to Article 701-9, paragraph (1) or (3); or

where, after a determination was made pursuant to Article 701-9, paragraph (2), a reassessment was made pursuant to paragraph (3) of that Article.

In the case falling under the provisions of the preceding paragraph (excluding the case where the proviso to that paragraph or paragraph (8) applies; the same applies in the following paragraph and paragraph (5)), where the tax amount to be remitted prescribed in the preceding paragraph (in the case falling under item (ii) or (iii) of that paragraph, the amount obtained by adding to that tax amount the total of the tax amounts to be remitted by a remittance return filed after the deadline for filing with respect to the bathing tax concerned, or by a reassessment or determination under Article 701-9, paragraphs (1) through (3), made before the reassessment prescribed in those items (where a reassessment reducing the tax amount to be remitted, or an alteration of the original disposition by a ruling or judgment on a request for review or an action relating to a reassessment, has been made, the amount obtained by deducting the amount equivalent to the tax amount of the portion reduced thereby; hereinafter in the following paragraph referred to as the "cumulative remitted tax amount"); hereinafter in the following paragraph referred to as the "cumulative remitted tax amount after addition") exceeds 500,000 yen, the amount of additional charge for failure to file prescribed in the preceding paragraph is, notwithstanding the provisions of that paragraph, the amount obtained by adding to the amount calculated pursuant to that paragraph the amount calculated by multiplying the amount equivalent to the excess portion (where the tax amount to be remitted prescribed in that paragraph is less than the amount equivalent to the excess portion, that tax amount) by 5 percent.

In the case falling under paragraph (2), where the cumulative remitted tax amount after addition (where, among the facts that formed the basis for calculating that cumulative remitted tax amount after addition, there is any that is found not to have been included in the basis for calculating the tax amount before the remittance return, determination or reassessment prescribed in each item of paragraph (2) for reasons not attributable to the special collection agent, the tax amount after deducting the amount calculated, as provided by Cabinet Order, as the tax amount based on that fact) exceeds 3,000,000 yen, the amount of additional charge for failure to file prescribed in paragraph (2) is, notwithstanding the preceding two paragraphs, to be the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative remitted tax amount after addition into the amounts listed in the following items and multiplying each amount by the rate specified in the relevant item, the total of the amounts calculated by dividing the cumulative remitted tax amount into the amounts listed in those items and multiplying each amount by the rate specified in the relevant item.

The amount equivalent to the portion not exceeding 500,000 yen: a rate of 15 percent

The amount equivalent to the portion exceeding 500,000 yen and not exceeding 3,000,000 yen: a rate of 20 percent

The amount equivalent to the portion exceeding 3,000,000 yen: a rate of 30 percent

In the case falling under paragraph (2), when any of the following items applies, the amount of the additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, the amount calculated under those paragraphs plus the amount calculated by multiplying the tax amount to be remitted prescribed in paragraph (2) by a rate of 10 percent.

In the case where, during the period up to the day five years before the day preceding the day on which the remittance return was filed after the deadline for filing (limited to a remittance return filed with foreknowledge that a determination based on an investigation by the mayor of the municipality would be made regarding the bathing tax relating to that remittance return; the same applies in the following item), or a reassessment or determination under Article 701-9, paragraphs (1) to (3) was made, an additional charge for failure to file (excluding one to which the following paragraph applies; the same applies in that item) or a substantial additional charge (referred to as "additional charge for failure to file, etc." in Article 701-13, paragraph (3), item (i)) has been collected with respect to bathing tax

In the case where an additional charge for failure to file or a substantial additional charge (limited to one to which Article 701-13, paragraph (2) applies) (hereinafter referred to as "specified additional charge for failure to file, etc." in this item and Article 701-13, paragraph (3), item (ii)) has been collected with respect to bathing tax for which special collection obligation arose in the year preceding, and the year before the year preceding, the year containing the day on which the special collection obligation arose for the bathing tax relating to the remittance return filed after the deadline for filing, or a reassessment or determination under Article 701-9, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case where a remittance return is filed after the deadline for filing, if the filing was not made with foreknowledge that a determination based on an investigation by the mayor of the municipality would be made regarding the bathing tax relating to that remittance return, the amount of additional charge for failure to file prescribed in paragraph (2) on the tax amount relating to that remittance return is, notwithstanding paragraphs (2) to (4), to be an amount equivalent to the amount calculated by multiplying that tax amount by a rate of 5 percent.

The mayor of the municipality must, without delay, notify the special collection agent when the mayor has determined the amount of additional charge for understatement to be collected under paragraph (1) or the amount of additional charge for failure to file to be collected under paragraph (2).

The provisions of paragraph (2) do not apply when a remittance return falling under paragraph (6) has been filed, if that filing was made in a case specified by Cabinet Order as one in which it is found that there was an intention to file by the deadline for filing the remittance return, and was made by the day on which one month elapses from the deadline for filing the remittance return.