Local Tax Act

When a person has failed to remit all or part of the remittance of the interest levy that is to be collected and remitted under Article 71-10, paragraph (2), the person who committed the violation is to be punished by imprisonment for not more than 10 years or a fine of not more than 2,000,000 yen, or both.

If the amount not remitted as referred to in the preceding paragraph exceeds 2,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 2,000,000 yen and not exceeding the amount not remitted.

If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in paragraph (1) in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in that paragraph is to be imposed on that corporation or individual.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of prescription is the same as that for the offense referred to in paragraph (1).

When paragraph (3) applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

If a special collection agent has not paid in full the local government levies relating to the interest levy by the due date for payment (where a reassessment or determination has been made under Article 71-11, paragraphs (1) through (3), the due date for payment under Article 71-12, paragraph (1); the same applies hereinafter in this Subsection), a prefectural tax collection official must issue a demand letter within 20 days after the due date for payment. However, this does not apply in the case of advance collection.

A prefecture in special circumstances may, by a Prefectural Ordinance of that prefecture, provide for a period different from the period prescribed in the preceding paragraph.

When a prefectural tax collection official has issued a demand letter, the official may collect a fee in accordance with the Prefectural Ordinance of the prefecture concerned.

When a person delinquent in payment of the interest levy falls under any one of the following items, a prefectural tax collection official must seize the property of the person delinquent in payment with respect to the local government levies relating to that interest levy.

when the person delinquent in payment has received a demand and has not paid in full, by the day on which 10 days have elapsed counting from the day on which the demand letter was issued, the local government levies relating to the interest levy that were the subject of the demand.

when the person delinquent in payment has not paid in full the local government levies relating to the interest levy by the due date for payment designated by the notice of advance collection.

When the preceding paragraph is applied to a secondary taxpayer or guarantor, the term "demand letter" in item (i) of that paragraph is deemed to be replaced with "written reminder to remit".

If, after the due date for payment of the local government levies relating to the interest levy and by the day on which the 10 days prescribed in paragraph (1), item (i) have elapsed, a fact falling under any one of the items of Article 13-2, paragraph (1) has arisen with respect to a person delinquent in payment who has received a demand, a prefectural tax collection official may seize that person's property immediately.

When compulsory liquidation procedures have been carried out on the property of a person delinquent in payment, a prefectural tax collection official must make a request for share distribution, with respect to the local government levies relating to the interest levy in arrears, to the enforcement agency (or, when making a request for share distribution of local government levies relating to the interest levy that are the subject of a claim set out in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case relating to that request for share distribution).

When a prefectural tax collection official is able to make a seizure under paragraphs (1) through (3), and property of a person delinquent in payment set out in the items of Article 86, paragraph (1) of the National Tax Collection Act has already been seized in a delinquent tax collection procedure for other local government levies or national taxes, or by a disposition governed by the rules of those delinquent tax collection procedures, the request for share distribution for that property may be made by participatory seizure.

In addition to what is provided for in the preceding paragraphs, delinquent tax collection procedures for local government levies relating to the interest levy are carried out in accordance with the rules for the delinquent tax collection procedure prescribed in the National Tax Collection Act.

Dispositions under the preceding paragraphs may also be carried out outside the area of the prefecture concerned.

If a special collection agent for the interest levy, 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 prefecture, falsely increases the encumbrances on the property, or alters its current state and thereby reduces the value of the property or increases the expenses for the 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 special collection agent commits an act referred to in the preceding paragraph for the purpose of enabling the special collection agent to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the special collection agent 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 the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in the preceding three paragraphs in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in the relevant paragraph is to be imposed on that corporation or individual.

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

In the case of Article 71-19, paragraph (6), where a person violates, without justifiable grounds, an order of a prefectural tax collection official issued in accordance with the rules of the proviso to Article 72-2, paragraph (1) of the National Tax Collection Act, the person who committed the violation 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.

If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in the preceding paragraph in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in that paragraph is to be imposed on that corporation or individual.

If the preceding paragraph applies to an unincorporated association or foundation for which a representative or administrator has been designated, in addition to its representative or administrator representing that association or foundation 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 referred to in Article 71-19, paragraph (6), when the person gives no answer, or makes a false statement, in response to questions by a prefectural tax collection official conducted in accordance with the rules of Article 141 of the National Tax Collection Act.

in the case referred to in Article 71-19, paragraph (6), when the person refuses, obstructs or evades the inspection by a prefectural tax collection official, 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 that Article; the same applies in the following item) or other articles.

in the case referred to in Article 71-19, paragraph (6), when the person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official, made in accordance with the rules of Article 141 of the National Tax Collection Act, for the presentation or submission of articles, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in the preceding paragraph in connection with the business or property of that corporation or individual, in addition to punishing the offender, the fine prescribed in that paragraph is to be imposed on that corporation or individual.

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

In the case referred to in Article 71-19, paragraph (6), a person who makes a false statement to the prefectural governor on matters on which a statement is to be made in accordance with the rules 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.

A prefecture is to apportion, as specified by Cabinet Order, the amount obtained by multiplying the amount equivalent to the interest levy amount remitted to that prefecture by the rate specified by Cabinet Order, in proportion to the interest levy settlement base amount of each prefecture, and pay, of the amount so apportioned, the amount relating to the other prefectures to those other prefectures respectively.

The amount to be paid to another prefecture under the preceding paragraph and the amount to be received from another prefecture under that paragraph are to be offset against each other among the relevant prefectures.

The interest levy settlement base amount of each prefecture referred to in paragraph (1) means, for each prefecture, the amount obtained by dividing by three the total of the amounts, calculated as provided by Order of the Ministry of Internal Affairs and Communications as the amount equivalent to the amount of income of individuals having an address in that prefecture, relating to each year within the three years before the year preceding the year containing the first day of the fiscal year concerned.

In addition to what is provided for in the preceding three paragraphs, procedures for implementing those provisions and other matters necessary for their enforcement are specified by Order of the Ministry of Internal Affairs and Communications.