Local Tax Act

Where a person liable for the interest levy has been subjected to a foreign income tax prescribed in Article 95, paragraph (1) of the Income Tax Act (including those specified by Cabinet Order) at the time of payment of interest and similar income on general foreign public and corporate bonds, etc. or dividends and similar income on foreign privately placed bond-based investment trusts, etc., and the amount of that foreign income tax exceeds the amount that is to be deducted from the amount of income tax pursuant to Article 3-3, paragraph (4), item (i) or Article 8-3, paragraph (4), item (i) of the Act on Special Measures Concerning Taxation, the excess amount is to be deducted from the amount of the interest levy, up to the amount of the interest levy of that person liable for tax calculated by applying the provisions of Articles 71-5 and 71-6. In this case, for the application of the provisions of Articles 37-3 and 314-8 to that person liable for tax, the amount of that foreign income tax is deemed not to exist.

The interest levy must be collected by the method of special collection.

In the case of collecting the interest levy by the method of special collection, a person who pays interest, etc. or handles such payment and who has a business office, etc. prescribed in Article 24, paragraph (8) within the prefecture must be designated as a special collection agent by the Prefectural Ordinance of that prefecture and made to collect the levy.

The special collection agent referred to in the preceding paragraph is obligated to collect the interest levy on interest, etc. at the time of payment of the interest, etc. (where the special collection agent is a person who handles the payment of interest, etc., at the time of delivery of the interest, etc. relating to that handling), and by the 10th day of the month following the month that includes the date of that collection, to submit to the prefectural governor, in the form specified by Order of the Ministry of Internal Affairs and Communications, a remittance return stating the amount of the tax base and the tax amount of the interest levy to be collected and other necessary particulars, and to remit the remittance to that prefecture. In this case, a statement specified by Order of the Ministry of Internal Affairs and Communications must be attached to the remittance return to be submitted to the prefectural governor.

When a remittance return under paragraph (2) of the preceding Article (hereinafter in this Subsection referred to as a "remittance return") has been submitted, if the amount of the tax base or the tax amount relating to the remittance return differs from what the prefectural governor has found through investigation, the governor makes a reassessment of it.

If a special collection agent has not submitted a remittance return, the prefectural governor determines, through investigation, the amount of the tax base and the tax amount for which a remittance return should be filed.

If the prefectural governor discovers through investigation that the amount of the tax base or the tax amount reassessed or determined pursuant to the provisions of the preceding two paragraphs or this paragraph is excessive or insufficient, the governor makes a reassessment of it.

When the prefectural governor has made a reassessment or determination pursuant to the provisions of the preceding three paragraphs, the governor must notify the special collection agent of it without delay.

When a reassessment or determination has been made pursuant to the provisions of paragraphs (1) through (3) of the preceding Article and there is a shortfall amount (meaning the shortfall in the amount of remittance resulting from a reassessment, or the amount of remittance resulting from a determination; the same applies hereinafter in this Subsection), a prefectural tax collection official must collect it, with the day on which one month has passed from the day on which the notice under paragraph (4) of that Article was given as the due date for payment.

In the case referred to in the preceding paragraph, an amount of delinquency charge equivalent to the amount calculated by multiplying the shortfall amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the due date for payment referred to in the preceding paragraph or the period from the day following that due date for payment until the day on which one month has passed) in accordance with the number of days in the period from the day following the due date for payment under Article 71-10, paragraph (2) (where there has been an extension of the due date for payment, the extended due date for payment; the same applies hereinafter in this Subsection, except in Article 71-19, paragraph (1)) until the date of remittance must be added to it and collected.

When the prefectural governor finds that there are unavoidable reasons for a special collection agent having been subject to the reassessment or determination under the preceding Article, the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

When a special collection agent for the interest levy remits the remittance after the due date for payment under Article 71-10, paragraph (2), the agent must remit it with an amount of delinquency charge added, equivalent to the amount calculated by multiplying the amount of remittance by a rate of 14.6 percent per annum (7.3 percent per annum for the period from the day following that due date for payment until the day on which one month has passed) in accordance with the number of days in the period from the day following that due date for payment until the date of remittance.

When the prefectural governor finds that there are unavoidable reasons for a special collection agent not having remitted the remittance by the due date for payment under Article 71-10, paragraph (2), the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.