Local Tax Act

Where paragraph (1) of the preceding Article applies, and the taxpayer has concealed or disguised all or part of the facts that should form the basis for calculating the amount of enterprise tax and, on the basis of the facts so concealed or disguised, has submitted a return, submitted an amended return under Article 72-31, paragraph (2) or (3), or submitted the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to in the following paragraph as a "written request for reassessment"), the prefectural governor must, as provided by Cabinet Order, collect, in lieu of the amount of additional charge for understatement on the tax deficiency resulting from the reassessment of enterprise tax that should form the basis for calculating the amount of additional charge for understatement prescribed in paragraph (1) of the preceding Article, or on the amount of tax increased by the amended return (where it is clear that part of that amount of tax is based on facts that should form the basis for calculating the amount of enterprise tax and that were not concealed or disguised, the amount of tax less the amount calculated as provided by Cabinet Order as the amount of tax based on facts not concealed or disguised), an amount of substantial additional charge equal to the amount calculated by multiplying that amount of tax by a rate of 35 percent.

Where paragraph (2) of the preceding Article applies (excluding where the proviso to that paragraph applies), and the taxpayer has concealed or disguised all or part of the facts that should form the basis for calculating the amount of enterprise tax and, on the basis of the facts so concealed or disguised, has failed to submit a return by its deadline for filing, or has submitted it after the deadline for filing, submitted an amended return under Article 72-31, paragraph (2) or (3), or submitted a written request for reassessment, the prefectural governor must collect, in lieu of the amount of additional charge for failure to file on the amount of tax that should form the basis for calculating the amount of additional charge for failure to file prescribed in paragraph (2) of the preceding Article (where it is clear that part of that amount of tax is based on facts that should form the basis for its calculation and that were not concealed or disguised, the amount of tax less the amount calculated as provided by Cabinet Order as the amount of tax based on facts not concealed or disguised), an amount of substantial additional charge equal to the amount calculated by multiplying that amount of tax by a rate of 40 percent.

Where paragraphs (1) and (2) apply and the taxpayer falls under any of the following items (item (i) only where paragraph (1) applies), notwithstanding those provisions, the amount of substantial additional charge prescribed in paragraphs (1) and (2) is the amount calculated under those provisions plus the amount calculated by multiplying, at a rate of 10 percent in each case, where paragraph (1) applies, the tax deficiency resulting from the reassessment of enterprise tax, or the amount of tax increased by the amended return, that should form the basis for calculation prescribed in paragraph (1) (where it is clear that part of that amount of tax is based on facts that should form the basis for calculating the amount of enterprise tax and that were not concealed or disguised, the amount of tax less the amount calculated as provided by Cabinet Order as the amount of tax based on facts not concealed or disguised), and, where paragraph (2) applies, the amount of tax that should form the basis for calculation prescribed in paragraph (2) (where it is clear that part of that amount of tax is based on facts that should form the basis for its calculation and that were not concealed or disguised, the amount of tax less the amount calculated as provided by Cabinet Order as the amount of tax based on facts not concealed or disguised).

where, during the period back to the day five years before, counting from the day preceding the day on which, on the basis of facts that were concealed or disguised and that should form the basis for calculating the amount of enterprise tax prescribed in paragraphs (1) and (2), a return was submitted after its deadline for filing, an amended return was submitted under Article 72-31, paragraph (2) or (3), or a reassessment or determination was made under Article 72-39, Article 72-41, paragraphs (1) through (3) or Article 72-41-2, paragraphs (1) through (3), an additional charge for failure to file, etc. has been collected with respect to enterprise tax;

where a specified additional charge for failure to file, etc. has been collected, or it is found that a determination should be made concerning a specified additional charge for failure to file, etc., with respect to enterprise tax for the business years that began in the year preceding, and the year before the year preceding, the year containing the start date of the business year pertaining to the submission of a return after its deadline for filing, the submission of an amended return under Article 72-31, paragraph (2) or (3), or a reassessment or determination under Article 72-39, Article 72-41, paragraphs (1) through (3) or Article 72-41-2, paragraphs (1) through (3).

Where the preceding three paragraphs apply, and the submission of a return or of an amended return under Article 72-31, paragraph (2) falls under the proviso to paragraph (1) of the preceding Article or a case listed in the items of paragraph (6) of that Article, the prefectural governor is not to collect the amount of substantial additional charge calculated on the basis of the amount of tax to be paid by that filing or the amount of tax increased by that amended return (where it is clear that part of that amount of tax is based on facts that should form the basis for calculating the amount of enterprise tax and that were not concealed or disguised, the amount of tax less the amount calculated as provided by Cabinet Order as the amount of tax based on facts not concealed or disguised).

Where the prefectural governor has determined the amount of substantial additional charge to be collected under paragraph (1) or (2), the governor must without delay notify the taxpayer of it.