Local Tax Act

When a remittance return under paragraph (2) of the preceding Article 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 71-51, 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 71-60, 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 share transfer income levy remits the remittance after the due date for payment under Article 71-51, 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 71-51, paragraph (2), the governor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

In the case where a remittance return is filed by the deadline for filing the remittance return (including the case where it is filed after the deadline for filing the remittance return and the proviso to paragraph (3) or the provisions of paragraph (9) apply; the same applies in the following paragraph), when a reassessment under the provisions of Article 71-52, paragraph (1) or (3) has been made, the prefectural governor must, where finding that there were no justifiable grounds for the error in the amount of the tax base or the tax amount pertaining to the remittance return before that reassessment, collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the shortfall resulting from that reassessment (referred to as the "covered shortfall" in the following paragraph) by a rate of 10 percent.

In the case falling under the provisions of the preceding paragraph, where the covered shortfall (where a reassessment was made before that reassessment with respect to the share transfer income levy pertaining to that reassessment, the amount obtained by adding the total of the shortfalls resulting from that earlier reassessment (where it has been found that there were justifiable grounds for the error in the amount of the tax base or the tax amount pertaining to the remittance return before that earlier reassessment, the amount after deducting the shortfall resulting from that earlier reassessment, and where there has been a change in the original disposition by a reassessment that reduces the amount to be remitted for that share transfer income levy, or by a ruling or judgment on a request for review of or an action concerning the reassessment, the amount after deducting the amount equivalent to the amount of the portion reduced thereby)) exceeds the greater of the amount equivalent to the tax amount pertaining to the remittance return in the case where it was filed by the deadline for filing the remittance return and 500,000 yen, the amount of additional charge for understatement prescribed in that paragraph is, notwithstanding the provisions of that paragraph, to be the amount obtained by adding, to the amount calculated pursuant to the provisions of that paragraph, the amount calculated by multiplying the amount equivalent to the portion exceeding that amount (where the covered shortfall is less than the amount equivalent to the portion exceeding that amount, the covered shortfall) by a rate of five percent.

In any of the following cases, the prefectural governor must collect an 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 each such 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 a remittance return is filed after the deadline for filing the remittance return, or where a determination under the provisions of Article 71-52, paragraph (2) has been made;

Where, after a remittance return was filed after the deadline for filing the remittance return, a reassessment under the provisions of Article 71-52, paragraph (1) or (3) has been made;

Where, after a determination under the provisions of Article 71-52, paragraph (2) was made, a reassessment under the provisions of paragraph (3) of that Article has been made.

In the case falling under the provisions of the preceding paragraph (excluding the case where the proviso to that paragraph or the provisions of paragraph (9) apply; the same applies in the following paragraph and paragraph (6)), 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 the total of the tax amounts to be remitted through a remittance return filed after the deadline for filing the remittance return for that share transfer income levy, made before the reassessment prescribed in those provisions, or through a reassessment or determination under the provisions of Article 71-52, paragraphs (1) through (3) (where there has been a change in the original disposition by a reassessment that reduces that tax amount to be remitted, or by a ruling or judgment on a request for review of or an action concerning the reassessment, the amount obtained by deducting the amount equivalent to the tax amount of the portion reduced thereby; referred to as the "cumulative remitted tax amount" in the following paragraph); referred to as the "cumulative remitted tax amount after addition" in the following paragraph) 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, to be the amount obtained by adding, to the amount calculated pursuant to the provisions of that paragraph, the amount calculated by multiplying the amount equivalent to the portion exceeding that amount (where the tax amount to be remitted prescribed in that paragraph is less than the amount equivalent to the portion exceeding that amount, that tax amount to be remitted) by a rate of five percent.

In the case falling under the provisions of paragraph (3), 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 (including the tax amount equivalent to the amount of refunds) before the remittance return, determination or reassessment prescribed in each item of that paragraph 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 that paragraph 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 the provisions of paragraph (3), when any of the following items applies, the amount of additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, to be the amount obtained by adding, to the amount calculated pursuant to those provisions, the amount calculated by multiplying the tax amount to be remitted prescribed in paragraph (3) by a rate of 10 percent.

Where, in respect of the share transfer income levy, an additional charge for failure to file (excluding one to which the provisions of the following paragraph apply; the same applies in the following item) or a substantial additional charge (referred to as "additional charge for failure to file, etc." in paragraph (3), item (i) of the following Article) has been collected during the period up to the day five years before, counted from the day preceding the day on which a remittance return was filed after the deadline for filing the remittance return (limited to filing made with foreseeing that a determination would be made by the prefectural governor following an investigation regarding the share transfer income levy pertaining to that remittance return; the same applies in the following item) or a reassessment or determination under the provisions of Article 71-52, paragraphs (1) through (3) was made;

Where, in respect of a share transfer income levy for which the special collection obligation arose in the year immediately preceding, and the year before that preceding, the year containing the day on which the special collection obligation arose for the share transfer income levy pertaining to a remittance return filed after the deadline for filing the remittance return or a reassessment or determination under the provisions of Article 71-52, paragraphs (1) through (3), an additional charge for failure to file or a substantial additional charge (limited to one to which the provisions of paragraph (2) of the following Article apply) (hereinafter in this item and paragraph (3), item (ii) of the following Article referred to as "specified additional charge for failure to file, etc.") has been collected, or where it is found that a determination should be made concerning a specified additional charge for failure to file, etc.

In the case where a remittance return is filed after the deadline for filing the remittance return, if that filing was not made with foreseeing that a determination would be made by the prefectural governor following an investigation regarding the share transfer income levy pertaining to that remittance return, the amount of additional charge for failure to file prescribed in paragraph (3) pertaining to the tax amount pertaining to that remittance return is, notwithstanding the provisions of that paragraph through paragraph (5), to be the amount equivalent to the amount calculated by multiplying that tax amount by a rate of five percent.

When the prefectural governor has determined the amount of additional charge for understatement to be collected pursuant to the provisions of paragraph (1) or the amount of additional charge for failure to file to be collected pursuant to the provisions of paragraph (3), the prefectural governor must, without delay, notify the special collection agent thereof.

The provisions of paragraph (3) do not apply where a remittance return falling under the provisions of paragraph (7) has been submitted, if the submission was made in a case specified by Cabinet Order as a case in which it is found that there was an intention to submit it by the deadline for filing the remittance return, and was made by the day on which one month has passed from the deadline for filing the remittance return.