Local Tax Act

Where a prefecture intends to establish or change a prefectural non-statutory ordinary tax (excluding a reduction of the tax rate of the prefectural non-statutory ordinary tax, its abolition and other changes specified by Cabinet Order; the same applies in the following paragraph and paragraph (2) of the following Article), it must consult in advance with the Minister for Internal Affairs and Communications and obtain the Minister's consent.

Where a prefecture has a person liable for the prefectural non-statutory ordinary tax of that prefecture (including a person who is to become a person liable for tax; the same applies hereinafter in this paragraph) who is specified by Order of the Ministry of Internal Affairs and Communications as a person for whom the total of the tax base of that prefectural non-statutory ordinary tax to be imposed on that person liable for tax is expected to continuously exceed one tenth of the total tax base of that prefectural non-statutory ordinary tax (hereinafter in this paragraph referred to as a "specified person liable for tax"), and intends to enact a Prefectural Ordinance to establish or change that prefectural non-statutory ordinary tax, it is to hear the opinion of the specified person liable for tax in the prefectural assembly of that prefecture.

Upon receiving a request for consultation under the preceding Article, the Minister for Internal Affairs and Communications must notify the Minister of Finance to that effect.

Upon receiving the notification referred to in the preceding paragraph, if the Minister of Finance has an objection to the establishment or change of the prefectural non-statutory ordinary tax to which the request for consultation relates, the Minister of Finance may so state to the Minister for Internal Affairs and Communications.

The Minister for Internal Affairs and Communications must hear the opinion of the Local Finance Council with regard to the consent referred to in Article 259, paragraph (1).

Upon receiving a request for consultation under Article 259, paragraph (1), the Minister for Internal Affairs and Communications must give consent to it, except where the Minister finds that any of the following grounds exist with respect to the prefectural non-statutory ordinary tax to which the request for consultation relates:

the tax base is the same as that of a national tax or other local tax, and the burden on residents would become significantly excessive;

it would seriously obstruct the distribution of goods among local governments;

apart from what is listed in the preceding two items, it is inappropriate in light of the economic policies of the State.

Prefectures may not impose prefectural non-statutory ordinary tax on the following:

land, houses and articles located outside the prefecture, and income arising from them;

business conducted at offices and places of business located outside the prefecture, and income arising from them;

benefits specified by Cabinet Order that are received on account of injury or illness due to official or occupational causes.

Prefectural non-statutory ordinary tax must be collected by the method of ordinary collection, filing and payment, special collection or collection by stamps, as is convenient for collection, in accordance with the Prefectural Ordinance of the prefecture concerned.

If necessary for an investigation concerning the assessment and collection of prefectural non-statutory ordinary tax, a prefectural tax collection official may question the persons listed below, or inspect books and documents relating to the business of a person listed in items (i) through (iii) (including, where electronic or magnetic records (meaning records made in electronic form, magnetic form or any other form not recognizable by human perception, which are used for information processing by a computer) have been made or kept in lieu of making or keeping them, those electronic or magnetic records; the same applies in items (i) and (ii) of paragraph (1) of the following Article) or other articles, or request the presentation or submission of those articles (including copies thereof):

a person liable for tax or a person found to have tax liability;

a special collection agent;

a person found to have an obligation to give money or goods to a person listed in the preceding two items;

a person other than those listed in the preceding three items who is found to be directly related to the assessment and collection of that prefectural non-statutory ordinary tax.

A successor corporation in a company split (meaning a corporation that has had assets and liabilities transferred to it by a splitting corporation in a company split; the same applies hereinafter in this paragraph) in a company split in which a person listed in item (i) or (ii) of the preceding paragraph is the splitting corporation (meaning a corporation that has transferred its assets and liabilities through a company split; the same applies hereinafter in this paragraph), and a splitting corporation in a company split in which a person listed in item (i) or (ii) of the preceding paragraph is the successor corporation in a company split, are included in the persons found to have an obligation to give money or goods prescribed in item (iii) of that paragraph.

In the case referred to in paragraph (1), the tax collection official in question must carry an identification card certifying the official's status and present it when requested by a person concerned.

A prefectural tax collection official may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

Investigations concerning delinquent tax collection procedures for prefectural non-statutory ordinary tax are governed by the provisions of Article 285, paragraph (6), notwithstanding the provisions of paragraph (1).

The authority of a prefectural tax collection official under paragraph (1) or (4) must not be construed as having been granted for the purpose of a criminal investigation.

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:

if the person refuses, obstructs or evades an inspection of books, documents or other articles under the provisions of the preceding Article;

if the person, without justifiable grounds, fails to comply with a request to present or submit articles under the provisions of paragraph (1) of the preceding Article, or presents or submits books, documents or other articles (including copies thereof) containing false entries or records;

if the person fails to answer questions put by a tax collection official under the preceding Article, or gives a false answer.

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

If a person liable for prefectural non-statutory ordinary tax (excluding a person liable for prefectural non-statutory ordinary tax subject to special collection; the same applies in the following paragraph and Article 268) or a special collection agent has no address, residence, office or place of business (hereinafter in this paragraph referred to as an "address, etc.") in the prefecture in which the person bears an obligation to pay or remit, the person must, in order to have all matters relating to payment or remittance handled, either appoint a tax agent from among persons having an address, etc. within the area specified by the Prefectural Ordinance of that prefecture and report the appointment to the prefectural governor, or apply to the prefectural governor for approval to appoint as a tax agent a person having an address, etc. outside that area who is in a convenient position to handle those matters, and obtain that approval. The same applies where the person changes or intends to change the tax agent.

Notwithstanding the preceding paragraph, the person liable for tax or special collection agent in question is not required to appoint a tax agent if that person has applied to the prefectural governor for, and obtained, certification that there is no impediment to securing the collection of the prefectural non-statutory ordinary tax relating to that person liable for tax or special collection agent.

If a person makes a false report concerning a tax agent to be reported under the provisions of paragraph (1) of the preceding Article, or obtains the approval under that paragraph or the certification under paragraph (2) of that Article by deceit or other wrongful means, the person who committed the violation is to be punished by a fine of not more than 300,000 yen.

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

A prefecture may establish a provision in the Prefectural Ordinance of that prefecture to the effect that a non-penal fine of not more than 100,000 yen is to be imposed on a person liable for prefectural non-statutory ordinary tax or a special collection agent who has not received the certification under Article 266, paragraph (2) and has not received the approval under paragraph (1) of that Article, if that person, without justifiable grounds, fails to report a tax agent to be reported under that paragraph.

The tax notice to be delivered to a taxpayer when intending to collect prefectural non-statutory ordinary tax by ordinary collection must be delivered to the taxpayer by 10 days before the due date for payment at the latest.

A person liable for prefectural non-statutory ordinary tax must, in accordance with the Prefectural Ordinance of the prefecture concerned, make a declaration or report on the matters specified by that Ordinance concerning the assessment and collection of that prefectural non-statutory ordinary tax.