Local Tax Act

A prefecture is not to impose light oil delivery tax on the taking delivery of the following light oil, only where the approval of the prefectural governor under Article 144-14, paragraph (4) has been given:

taking delivery of light oil that is conducted as an export from Japan;

taking delivery of light oil on which light oil delivery tax has already been imposed.

A prefecture is not to impose light oil delivery tax on the taking delivery of light oil that a person engaged in the business of manufacturing petrochemical products uses, at a workplace of that business, as raw material or for any other use specified by Cabinet Order in order to manufacture ethylene or other petrochemical products specified by Cabinet Order, only where a tax exemption certificate has been issued under Article 144-21, paragraph (1) or the approval of the prefectural governor under Article 144-31, paragraph (4) or (5) has been given.

In the case where the armed forces of a contracting state have consumed, as fuel for the internal combustion engine of a motor vehicle (limited to consumption in order to put that motor vehicle into operation on a road), light oil pertaining to imports on which light oil delivery tax is not to be imposed pursuant to Article 144-3, paragraph (5), or fuel hydrocarbon oil for official use that they themselves imported, a prefecture is not to impose light oil delivery tax on the consumption of that light oil or fuel hydrocarbon oil, notwithstanding Article 144-2, paragraph (5).

The Minister for Internal Affairs and Communications is to designate as primary distributors, based on their applications, those among the following persons who satisfy the requirements specified by Cabinet Order, such as being found to pose no obstacle to securing the collection of light oil delivery tax:

a person engaged in the business of manufacturing light oil (limited to a person who satisfies the criteria specified by Order of the Ministry of Internal Affairs and Communications with regard to the manufactured volume of light oil and other matters);

a person engaged in the business of importing light oil (limited to a person who satisfies the criteria specified by Order of the Ministry of Internal Affairs and Communications with regard to the imported volume of light oil and other matters);

a person engaged in the business of selling light oil (limited to a person who satisfies the criteria specified by Order of the Ministry of Internal Affairs and Communications with regard to the sales volume of light oil and other matters).

The Minister for Internal Affairs and Communications may revoke the designation of a primary distributor when the primary distributor ceases to satisfy the requirements prescribed in the preceding paragraph or satisfies other requirements specified by Cabinet Order.

In addition to what is provided for in the preceding two paragraphs, matters necessary for the designation of primary distributors or the revocation of designation are specified by Order of the Ministry of Internal Affairs and Communications.

A prefectural governor is to designate as a provisional contracted dealer, based on the person's application, a person who is engaged in the business of receiving a continuous supply of light oil from a primary distributor under a sales contract concluded with that primary distributor and selling it (excluding a person who satisfies the requirements specified by Cabinet Order taking into consideration the basis of the person's management and other matters), and who has a principal office or place of business within the prefecture.

The validity period of the designation of a provisional contracted dealer under the preceding paragraph is one year counted from the date of designation; provided, however, that where the provisional contracted dealer has received designation as a contracted dealer under paragraph (1) of the following Article, the designation of that provisional contracted dealer ceases to be effective.

The prefectural governor referred to in paragraph (1) may revoke the designation of a provisional contracted dealer when the provisional contracted dealer comes to satisfy the requirements specified by Cabinet Order referred to in that paragraph, or in other cases specified by Cabinet Order.

Where the prefectural governor referred to in paragraph (1) has designated a provisional contracted dealer or revoked such a designation, the governor must notify the governors of the relevant prefectures to that effect.

In addition to what is provided for in the preceding paragraphs, matters necessary for the designation of provisional contracted dealers or the revocation of designation are specified by Order of the Ministry of Internal Affairs and Communications.

The prefectural governor is to designate as a contracted dealer, based on the application of the provisional contracted dealer, a provisional contracted dealer that has its principal office or place of business within the prefecture and satisfies the requirements specified by Cabinet Order, such as being found to pose no obstacle to securing the collection of light oil delivery tax. In this case, the prefectural governor must hear in advance the opinions of the governors of the relevant prefectures.

When the prefectural governor referred to in the preceding paragraph has designated a contracted dealer, the governor must notify the governors of the relevant prefectures to that effect and report to the Minister for Internal Affairs and Communications.

The governor of the prefecture where the principal office or place of business of a contracted dealer is located may revoke the designation of the contracted dealer when the contracted dealer ceases to satisfy the requirements prescribed in paragraph (1) or satisfies other requirements specified by Cabinet Order.

Where the governor of a relevant prefecture finds it necessary to revoke the designation of a contracted dealer under the preceding paragraph, the governor must make a request for the revocation of the designation of the contracted dealer to the governor of the prefecture where the principal office or place of business of the contracted dealer is located, attaching a document stating the reasons.

Where the governor of the prefecture where the principal office or place of business of a contracted dealer is located has received the documents pertaining to a request for revocation of designation under the preceding paragraph with regard to the contracted dealer, if the governor finds it necessary, the governor must revoke the designation of the contracted dealer; provided, however, that where the governor's opinion differs from that of the governor of the relevant prefecture, the governor must, within two months from the day of receiving the documents, send the documents to the Minister for Internal Affairs and Communications, attaching the governor's own opinion, and request the Minister's instructions.

Where a request for instructions under the proviso to the preceding paragraph has been made and the Minister for Internal Affairs and Communications finds it necessary to revoke the designation of the contracted dealer, the Minister must instruct the governor of the prefecture where the principal office or place of business of the contracted dealer is located to revoke the designation of the contracted dealer. In this case, the governor of the prefecture where the principal office or place of business of the contracted dealer is located must revoke the designation of the contracted dealer based on the instructions.

Where a request for instructions under the proviso to paragraph (5) has been made and the Minister for Internal Affairs and Communications finds it unnecessary to revoke the designation of the contracted dealer, the Minister must notify the governor of the prefecture where the principal office or place of business of the contracted dealer is located and the governors of the relevant prefectures to that effect.

When the Minister for Internal Affairs and Communications intends to give the instructions in the first sentence of paragraph (6) or the notification under the preceding paragraph, the Minister must hear the opinion of the Local Finance Council.

Where the governor of the prefecture where the principal office or place of business of a contracted dealer is located has revoked the designation of the contracted dealer pursuant to the provisions of paragraph (3), the main clause of paragraph (5), or the second sentence of paragraph (6), the governor must notify the governors of the relevant prefectures to that effect and report to the Minister for Internal Affairs and Communications.

In addition to what is provided for in the preceding paragraphs, matters necessary for the designation of contracted dealers or the revocation of designation are specified by Order of the Ministry of Internal Affairs and Communications.

The rate of light oil delivery tax is 15,000 yen per kiloliter.

In the case where it is necessary for an examination relating to the assessment and collection of light oil delivery tax, a prefectural tax collection official may question the persons listed below, or inspect the books and documents relating to the business of such a person (including, where electronic or magnetic records (meaning records made in electronic form, magnetic form or any other form that cannot be perceived by human senses, 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 hereinafter in this Section) and other articles, or request the presentation or submission of those articles (including copies thereof).

a special collection agent;

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

a motor vehicle holder whose motor vehicle is found to be capable of using light oil as fuel for an internal combustion engine;

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

a person found to be directly related to the assessment and collection of the light oil delivery tax in question, being a petroleum product seller, a person who transports petroleum products, or any other person other than the persons listed in the preceding items.

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

In the case referred to in paragraph (1), the tax collection official may collect light oil or other petroleum products as samples, in the minimum necessary quantity.

In the case referred to in paragraph (1) or the preceding paragraph, the tax collection official must carry a certificate proving 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).

With regard to an examination relating to the delinquent tax collection procedure for light oil delivery tax, notwithstanding the provisions of paragraph (1), Article 144-51, paragraph (6) governs.

The authority of a prefectural tax collection official prescribed in paragraph (1), (3) or (5) 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 paragraph (1) of the preceding Article, or the collection of samples under the provisions of paragraph (3) of that 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 provisions of paragraph (1) of 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.

Light oil delivery tax must be collected by the method of special collection; provided, however, that collection in the case where light oil delivery tax is imposed pursuant to the provisions of Article 144-2, paragraphs (3) to (6) or Article 144-3, and in other cases of special necessity, is to be by the method of filing and payment.