Local Tax Act

Where there is a fact falling under any of the following items, if it is found that, based on that fact, a taxpayer or special collection agent is unable to pay or remit in a lump sum the local government levies relating to that local government, the head of a local government may, up to the limit of the amount found to be unable to be paid or remitted, upon application by that person, defer the collection for a period not exceeding one year:

when the taxpayer or special collection agent has suffered an earthquake, storm, flood, fire or other disaster, or a theft, with regard to their property;

when the taxpayer or special collection agent, or a relative who shares a livelihood with them, has fallen ill or been injured;

when the taxpayer or special collection agent has discontinued or suspended their business;

when the taxpayer or special collection agent has suffered a substantial loss in their business;

when there has been a fact similar to a fact falling under any of the preceding items.

Where, with regard to a taxpayer or special collection agent, the amount to be paid or remitted has been fixed on or after the day on which one year has elapsed from the statutory payment due date of the local government levies relating to that local government (for a local tax imposed from time to time, the day on which it became possible to impose that local tax), if it is found that there is a reason why the local government levies to be paid or remitted cannot be paid or remitted in a lump sum, the head of a local government may, up to the limit of the amount found to be unable to be paid or remitted, upon application by that person made by the due date for payment of those local government levies, defer the collection for a period not exceeding one year from that due date for payment.

When the head of a local government grants a deferral of collection under the preceding two paragraphs (hereinafter in this Chapter referred to as "deferral of collection"), the head may, as provided by the Prefectural or Municipal Ordinance of that local government, with regard to the payment or remittance of the local government levies subject to that deferral of collection, have the amount subject to the deferral of collection paid or remitted in installments within the period of the deferral of collection, in amounts that are reasonable and appropriate in view of the financial condition of the person receiving the deferral of collection and other circumstances.

Where the head of a local government has granted a deferral of collection, if the head finds that there is an unavoidable reason why the amount subject to the deferral of collection cannot be paid or remitted within the period of the deferral of collection, the head may, upon application by the person who received the deferral of collection, extend that period. However, that period, together with the period for which the deferral of collection has already been granted to that person, may not exceed two years.

When the head of a local government grants an extension of the period of deferral of collection under the preceding paragraph (hereinafter in this Chapter referred to as "extension of the period of deferral of collection"), the head may, as provided by the Prefectural or Municipal Ordinance of that local government, with regard to the payment or remittance of the local government levies subject to that extension of the period of deferral of collection, have the amount subject to the deferral of collection paid or remitted in installments within the period of the extension of the period of deferral of collection, in amounts that are reasonable and appropriate in view of the financial condition of the person receiving the extension of the period of deferral of collection and other circumstances.

A person who intends to apply for a deferral of collection (limited to one under paragraph (1) of the preceding Article) must submit to the head of the local government a written application stating the fact that there is a fact falling under any of the items of that paragraph, the details of the circumstances by which, based on that fact, the person is unable to pay or remit in a lump sum the local government levies subject to the deferral of collection, the amount for which and the period for which the person wishes to receive the deferral of collection, and other matters specified by the Prefectural or Municipal Ordinance of that local government, attaching documents sufficient to prove that fact, an inventory of property, documents relating to the provision of security, and other documents specified by the Prefectural or Municipal Ordinance of that local government.

A person who intends to apply for a deferral of collection (limited to one under paragraph (2) of the preceding Article) must submit to the head of the local government a written application stating the details of the circumstances by which the person is unable to pay or remit in a lump sum the local government levies subject to the deferral of collection, the amount for which and the period for which the person wishes to receive the deferral of collection, and other matters specified by the Prefectural or Municipal Ordinance of that local government, attaching an inventory of property, documents relating to the provision of security, and other documents specified by the Prefectural or Municipal Ordinance of that local government.

A person who intends to apply for an extension of the period of deferral of collection must submit to the head of the local government a written application stating the unavoidable reason why the person cannot pay or remit within the period of the deferral of collection the amount subject to the deferral of collection, the period for which the person wishes to receive the extension of the period of deferral of collection, and other matters specified by the Prefectural or Municipal Ordinance of that local government, attaching an inventory of property, documents relating to the provision of security, and other documents specified by the Prefectural or Municipal Ordinance of that local government.

With regard to the documents to be attached under paragraph (1) or the preceding paragraph (excluding documents specified by the Prefectural or Municipal Ordinance of a local government), notwithstanding those provisions, where a deferral of collection under paragraph (1) of the preceding Article (limited to the part relating to item (i), item (ii) or item (v) (limited to the part concerning a fact similar to a fact falling under item (i) or (ii) of that paragraph)) (hereinafter in this paragraph and Article 15-9, paragraph (1) referred to as "deferral of collection due to a disaster, etc.") or an extension of the period for which that deferral of collection due to a disaster, etc. has been granted is to be granted, if the head of the local government finds that it is difficult for the person who intends to receive that deferral of collection due to a disaster, etc. or that extension to submit the documents to be attached, those documents need not be attached.

When a written application under paragraphs (1) through (3) has been submitted, the head of a local government is to investigate the matters relating to the application, and either grant the deferral of collection or the extension of the period of deferral of collection, or deny the deferral of collection or the extension of the period of deferral of collection.

When a written application under paragraphs (1) through (3) has been submitted, if there is a deficiency in the statements in those written applications, or there is a deficiency in the statements in, or no submission of, the documents to be attached to those written applications, the head of a local government may request the person who submitted the written application to correct that written application or to correct or submit the documents to be attached.

When the head of a local government requests, under the preceding paragraph, the correction of a written application or the correction or submission of the documents to be attached, the head is to notify the person who submitted the written application of that fact by a document stating so.

A person who has been requested under paragraph (6) to correct a written application or to correct or submit the documents to be attached must make that correction or submission within the period specified by the Prefectural or Municipal Ordinance of the local government, counted from the day on which the person received the notice under the preceding paragraph. In this case, if the person has not made that correction or submission within that period, the person who was requested to correct the written application or to correct or submit the documents to be attached is deemed to have withdrawn the application on the day on which that period elapsed.

Where a written application has been submitted under paragraphs (1) through (3), even if the person who submitted it is found to fall under paragraph (1), (2) or (4) of the preceding Article, the head of a local government may decline to approve the deferral of collection or the extension of the period of deferral of collection if any of the following items applies.

Where the case falls under the cases listed in Article 15-3, paragraph (1), item (i);

Where the person who submitted the written application has failed to answer, or has given a false answer to, a question under the following paragraph, has refused, obstructed or evaded an inspection under that paragraph, has failed without justifiable grounds to comply with a demand for presentation or submission of an object under that paragraph, or has presented or submitted books and documents containing false entries or records (including, where an electronic or magnetic record has been created or kept in place of creating or keeping them, that electronic or magnetic record; the same applies in that paragraph) or other objects (including copies thereof) (where an electronic or magnetic record means a record made in electronic form, magnetic form or any other form that cannot be perceived by human senses and that is used for information processing by a computer; the same applies hereinafter in this Chapter);

Where an application for a deferral of collection or an extension of the period of deferral of collection has been made for an improper purpose, or the application is otherwise not made in good faith;

Where the case falls under a case specified by the Prefectural or Municipal Ordinance of that local government as similar to those listed in the preceding three items.

When the head of a local government finds it necessary in order to conduct the investigation under paragraph (5), the head may, to the extent necessary, have a tax collection official question the person who submitted the written application, inspect the person's books and documents and other objects, demand the presentation or submission of those objects (including copies thereof), or retain objects submitted in that investigation.

A tax collection official who conducts questioning, inspection or a demand for presentation or submission under the preceding paragraph must carry a certificate showing the official's status and present it when requested by a person concerned.

The authority of a tax collection official of a local government under paragraph (10) must not be construed as having been granted for the purpose of criminal investigation.

When the head of a local government has granted a deferral of collection or an extension of the period of deferral of collection, the head must notify the person who received that deferral of collection or extension of the period of deferral of collection of that fact, the amount deferred, the period of deferral and other necessary matters.

When a written application has been submitted under paragraphs (1) through (3) of the preceding Article and the head of a local government does not approve a deferral of collection or an extension of the period of deferral of collection, the head must notify the person who submitted the written application to that effect.