Local Tax Act

A governor of a relevant prefecture who has an objection to the disposition of the prefectural governor referred to in paragraph (1) of the preceding Article relating to the notice under paragraph (6) of that Article may apply to the Minister for Internal Affairs and Communications for a determination.

Upon receiving an application under the preceding paragraph, the Minister for Internal Affairs and Communications must make the determination within 30 days from the day of receiving the application.

When the Minister for Internal Affairs and Communications intends to make the determination under the preceding paragraph, the Minister must hear the opinion of the Local Finance Council.

When the Minister for Internal Affairs and Communications has made the determination under paragraph (2), the Minister must notify the governors of the relevant prefectures and the taxpayer concerned to that effect without delay.

If the notice under the preceding paragraph was sent by mail or correspondence delivery and the day on which it arrived is not clear, the day on which four days have elapsed from the day it was sent is deemed to be the day on which the notice under that paragraph was received. In this case, if the prefectural governor can prove the day on which it arrived, the day so proved is deemed to be the day on which the notice was received.

A prefectural governor who finds that the determination of the Minister for Internal Affairs and Communications under paragraph (2) is unlawful may bring an action in court within 30 days from the day of receiving notice of that determination.

A prefectural governor may reduce or exempt corporate prefectural inhabitant tax, in accordance with the Prefectural Ordinance of the prefecture concerned, only for a person who is found to need a reduction or exemption of corporate prefectural inhabitant tax in the case of a natural disaster or other special circumstances, and for other persons in special circumstances.

If a person has evaded all or part of corporate prefectural inhabitant tax (in the case of the corporation tax levy, calculated by taking as the tax base the corporation tax amount that should be stated in the return relating to the corporation tax levy, and excluding the amount to be paid by filing under Article 53, paragraph (1), or by filing under paragraph (34) of that Article relating thereto, by a corporation that is obliged under Article 53, paragraph (1) to file a return concerning corporation tax under Article 71, paragraph (1) of the Corporation Tax Act (limited to one stating the matters set out in the items of Article 72, paragraph (1) of that Act) or a return concerning corporation tax under Article 144-3, paragraph (1) of that Act (limited to one stating the matters set out in the items of Article 144-4, paragraph (1) of that Act); the same applies in paragraph (3)) by deception or other wrongful acts, the representative of the corporation (including an administrator of an association or foundation without juridical personality and an individual who is a trustee of a trust subject to corporate taxation; the same applies in paragraph (3)), agent, employee or other worker who committed the violation is to be punished by imprisonment for not more than 10 years or a fine of not more than 10,000,000 yen, or both.

If the amount of tax evaded as referred to in the preceding paragraph exceeds 10,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 10,000,000 yen and not exceeding the amount of the tax evaded.

In addition to what is provided for in paragraph (1), if all or part of corporate prefectural inhabitant tax has been evaded by not filing the return under Article 53, paragraph (1), (2) or (31) within the deadline for filing the return prescribed in the relevant paragraph, the representative of the corporation, agent, employee or other worker who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 5,000,000 yen, or both.

If the amount of tax evaded as referred to in the preceding paragraph exceeds 5,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 5,000,000 yen and not exceeding the amount of the tax evaded.

If the representative of a corporation (including an administrator of an association or foundation without juridical personality), or an agent, employee or other worker has committed a violation referred to in paragraph (1) or (3) in connection with the business or property of that corporation, in addition to punishing the offender, the fine prescribed in the relevant paragraph is to be imposed on that corporation.

The period of prescription in the case where a fine is imposed on a corporation under the preceding paragraph for a violation referred to in paragraph (1) or (3) is governed by the period of prescription for the offenses under those paragraphs.

When paragraph (5) applies to an association or foundation without juridical personality, its representative or administrator represents that association or foundation without juridical personality 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 prefectural governor, for the assessment and collection of corporate prefectural inhabitant tax, requests the government to permit inspection or recording of a return that a person liable for corporation tax has submitted to the government, or of documents relating to a reassessment or determination made by the government, the government is to allow the prefectural governor or an official designated by the governor to inspect or record the relevant documents.

When the government has given notice of a reassessment or determination concerning corporation tax, it must, without delay, notify the amount of income and the corporation tax amount relating to that reassessment or determination to the prefectural governor of the prefecture in which the office or place of business of the corporation is located as of the last day of the computation period of the tax base of the corporation tax amount relating to that reassessment or determination (in the case of a corporation that has offices or places of business in two or more prefectures, its principal office or place of business).

The prefectural governor of the prefecture in which the principal office or place of business is located, having received the notice under the preceding paragraph, must notify the governors of the relevant prefectures of the corporation tax amount, etc. relating to that notice without delay.

A prefectural governor who has received the notice under the preceding two paragraphs must notify the mayors of the relevant municipalities within the area of that prefecture of the corporation tax amount, etc. relating to that notice without delay.

A taxpayer of corporate prefectural inhabitant tax who pays the tax after the due date for payment under Article 53, paragraph (1), (2) or (31), or who pays the tax relating to a return prescribed in paragraph (34) of that Article, must pay, in addition to the respective tax amount, an amount of delinquency charge equivalent to the amount calculated by multiplying that tax amount by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the day or deadline specified in each of the following items according to the classification of tax amounts set out in that item), in accordance with the number of days in the period from the day following the due date for payment (in the case of paying tax relating to a return prescribed in paragraph (34) of that Article, the due date for payment under paragraph (1), (2) or (31) of that Article relating to that tax, and where the due date for payment has been extended, the extended due date for payment; the same applies in item (i) and paragraph (3), item (i)) to the day of payment.

the tax amount relating to the return prescribed in Article 53, paragraph (1), (2) or (31) (excluding that set out in the following item): the day on which one month elapses from the day following the due date for payment relating to that tax amount

the tax amount relating to a return prescribed in Article 53, paragraph (1), (2) or (31) that was filed after the deadline for filing: the day of that filing or the day on which one month elapses from the day following that day

the tax amount relating to the return prescribed in Article 53, paragraph (34): the day on which the return was filed under that paragraph (where Article 53, paragraph (35) applies and that return was filed before its deadline for filing, the deadline for filing that return; hereinafter the same in this item) or the day on which one month elapses from the day following the day on which that return was filed

In the case referred to in the preceding paragraph, when a corporation has filed the return prescribed in Article 53, paragraph (34) after the day on which one year elapses from the day following the day on which it filed the return prescribed in Article 53, paragraph (1), (2) or (31) (or, if that return was filed before its deadline for filing, the deadline for filing that return), the period from the day following the day on which that one year elapses to the day on which that return was filed (or, where Article 53, paragraph (35) applies and that return was filed before its deadline for filing, the deadline for filing that return) is to be deducted from the period forming the basis for calculating the delinquency charge, except where a corporation that evaded prefectural inhabitant tax by deceit or other wrongful act filed that return having foreseen that a reassessment under Article 55, paragraph (1) or (3) would be made.

In the case referred to in paragraph (1), when the return prescribed in Article 53, paragraph (34) (hereinafter in this paragraph referred to as an "amended return") has been filed (limited to when that amended return has been filed after the return prescribed in paragraph (1), (2) or (31) of that Article (hereinafter in this paragraph referred to as the "original return") has been filed with respect to the prefectural inhabitant tax relating to that amended return, and there has been a reassessment reducing the tax payable by the filing of that original return (including a reassessment specified by Cabinet Order as similar thereto; hereinafter in this paragraph referred to as a "reassessment reducing the tax")), for the amount of tax payable by the filing of that amended return (limited to the amount of tax specified by Cabinet Order as the portion up to the amount of tax relating to that original return (including the amount of tax equivalent to the amount of a refund)), notwithstanding the preceding paragraph, the following periods (limited to the period set out in item (i) in the case of the prefectural inhabitant tax relating to an amended return filed by a corporation that evaded prefectural inhabitant tax by deceit or other wrongful act having foreseen that a reassessment under Article 55, paragraph (1) or (3) would be made, and other prefectural inhabitant tax specified by Cabinet Order) are to be deducted from the period forming the basis for calculating the delinquency charge.

the period from the day following the day on which the tax payable by the filing of that original return was paid (or, if that day is earlier than the due date for payment of the prefectural inhabitant tax relating to that return, that due date for payment) until the day on which notice of that reassessment reducing the tax was given

the period from the day following the day on which notice of that reassessment reducing the tax was given (or, if that reassessment reducing the tax is based on a request for reassessment (excluding one resulting from a reassessment of corporation tax) or results from a reassessment of corporation tax (limited to one based on a request for reassessment of corporation tax), the day on which one year elapses counting from the day following the day on which notice of that reassessment reducing the tax was given) until the day on which that amended return was filed (where Article 53, paragraph (35) applies and that amended return was filed before its deadline for filing, the deadline for filing that amended return)

A prefectural governor may reduce or exempt the amount of delinquency charge under paragraph (1) if the governor finds that there is an unavoidable reason why the taxpayer did not pay the tax by the due date for payment under that paragraph.