Local Tax Act

In the case falling under Article 609, paragraph (1), if a taxpayer conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and files a return, an amended return or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as the "written request for reassessment" in the following paragraph) based on the facts so concealed or disguised, the mayor of the municipality must, as provided by Cabinet Order, collect, in lieu of the amount of additional charge for understatement prescribed in Article 609, paragraph (1), an amount of substantial additional charge equivalent to the amount calculated by multiplying the tax deficiency due to reassessment, or the tax amount increased by the amended return, that is to be the basis for that calculation, by a rate of 35 percent.

In the case falling under Article 609, paragraph (2) (excluding the case where the proviso to Article 609, paragraph (2) applies), if a taxpayer conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and, based on the facts so concealed or disguised, does not file a return by the deadline for filing, or files a return after the deadline for filing, files an amended return, or files a written request for reassessment, the mayor of the municipality must, in lieu of the amount of additional charge for failure to file prescribed in Article 609, paragraph (2), collect an amount of substantial additional charge equivalent to the amount calculated by multiplying the tax amount that is to be the basis for that calculation by a rate of 40 percent.

In the case falling under the preceding two paragraphs, if any of the following items (item (i) in the case falling under paragraph (1)) applies, the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those provisions, to be the amount obtained by adding, to the amount calculated under those provisions, the amount calculated by multiplying, by a rate of 10 percent, the tax deficiency due to reassessment or the tax amount increased by the amended return that is to be the basis for calculation prescribed in paragraph (1) in the case falling under paragraph (1), or the tax amount that is to be the basis for calculation prescribed in paragraph (2) in the case falling under paragraph (2), respectively.

In the case where, during the period up to the day five years before the day preceding the day on which, based on the concealed or disguised facts that are to be the basis for calculating the amount of the tax base prescribed in the preceding two paragraphs, the return was filed after the deadline for filing, the amended return was filed, or a reassessment or determination under Article 606, paragraphs (1) to (3) was made, an additional charge for failure to file, etc. has been collected with respect to special land holding tax

In the case where a specified additional charge for failure to file, etc. has been collected with respect to special land holding tax for which tax liability arose in the year preceding, and the year before the year preceding, the year containing the day on which the tax liability arose for the special land holding tax relating to the return filed after the deadline for filing, the amended return filed, or a reassessment or determination under Article 606, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case falling under the preceding three paragraphs, if there are grounds prescribed in the proviso to Article 609, paragraph (1) or in Article 609, paragraph (6) with respect to the filing of the return or amended return, the mayor of the municipality does not collect the amount of substantial additional charge calculated on the basis of the tax amount payable under that return or the tax amount increased by that amended return.

When the mayor of the municipality has determined the amount of substantial additional charge to be collected under paragraph (1) or (2), the mayor must, without delay, notify the taxpayer.

If a taxpayer does not pay in full the local government levies on special land holding tax by the due date for payment (where a reassessment or determination has been made, the due date for payment of the tax deficiency; the same applies hereinafter in this Article and Article 613, paragraph (3)), a municipal tax collection official must issue a demand letter within 20 days after the due date for payment; provided, however, that this does not apply in the case of advance collection.

In a municipality with special circumstances, a period different from the period prescribed in the preceding paragraph may be provided for by a Municipal Ordinance of that municipality.

When a municipal tax collection official has issued a demand letter, the official may collect a fee in accordance with the provisions of the Municipal Ordinance of that municipality.

If a delinquent person in payment of the special land holding tax falls under any one of the following items, a municipal tax collection official must seize the property of the person delinquent in payment with respect to the local government levies relating to that special land holding tax.

The person delinquent in payment has received a demand and has not paid in full the local government levies relating to the special land holding tax that are the subject of the demand by the day on which 10 days have elapsed counting from the day on which the demand letter was issued.

The person delinquent in payment has not paid in full the local government levies relating to the special land holding tax by the due date for payment designated in the notice concerning advance collection.

When the preceding paragraph is applied to a secondary taxpayer or guarantor, the term "demand letter" in item (i) of that paragraph is to read "written reminder to pay".

If, after the due date for payment of the local government levies relating to the special land holding tax and by the day on which the 10 days prescribed in paragraph (1), item (i) have elapsed, a fact falling under any one of the items of Article 13-2, paragraph (1) arises with respect to a person delinquent in payment who has received a demand, a municipal tax collection official may seize that person's property immediately.

If a compulsory liquidation procedure has been carried out with respect to the property of a person delinquent in payment, a municipal tax collection official must make a request for share distribution, with respect to the local government levies relating to the special land holding tax that are in arrears, to the enforcement agency (where making a request for share distribution of the local government levies relating to the special land holding tax relating to a claim listed in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case relating to that request for share distribution).

Where a municipal tax collection official is able to make a seizure under paragraphs (1) to (3), and the property of the person delinquent in payment that is listed in the items of Article 86, paragraph (1) of the National Tax Collection Act has already been seized in a delinquent tax collection procedure for levies of another local government or for national tax, or in a disposition carried out in accordance with the rules for those delinquent tax collection procedures, a request for share distribution with respect to that property may be made by participatory seizure.

In addition to what is provided in the preceding paragraphs, the delinquent tax collection procedure for the local government levies relating to the special land holding tax is carried out in accordance with the rules for the delinquent tax collection procedure prescribed in the National Tax Collection Act.

A disposition under the preceding paragraphs may also be carried out outside the area of the municipality concerned.

If a taxpayer of the special land holding tax, for the purpose of evading the execution of a delinquent tax collection procedure, conceals or destroys property, disposes of it to the detriment of the municipality, falsely increases the encumbrances on it, or alters its condition so as to reduce its value, or increases the expenses for the delinquent tax collection procedure relating to that delinquent tax collection procedure, that person is to be punished by imprisonment for not more than three years or a fine of not more than 2,500,000 yen, or both.

The same applies where a third party in possession of the property of a taxpayer commits an act referred to in the preceding paragraph for the purpose of enabling the taxpayer to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the taxpayer or of the third party in possession of the property in an act referred to in the preceding two paragraphs, the person who committed the violation as the counterparty is to be punished by imprisonment for not more than two years or a fine of not more than 1,500,000 yen, or both.

If a representative of a corporation, or an agent, employee or other worker of a corporation or a person, commits a violation prescribed in the preceding three paragraphs in connection with the business or property of that corporation or person, then in addition to punishing the offender, the fine prescribed in the relevant paragraphs is imposed on that corporation or person.

In the case of Article 613, paragraph (6), where a person violates, without justifiable grounds, an order of a municipal tax collection official issued in accordance with the rules of the proviso to Article 72-2, paragraph (1) of the National Tax Collection Act, the person who committed the violation is to be punished by imprisonment for not more than three years or a fine of not more than 2,500,000 yen, or both.

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

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:

In the case under Article 613, paragraph (6), if a person fails to answer, or makes a false statement in response to, questions by a municipal tax collection official conducted in accordance with the rules of Article 141 of the National Tax Collection Act.

In the case under Article 613, paragraph (6), if a person refuses, obstructs or evades an inspection by a municipal tax collection official of books and documents (meaning the books and documents prescribed in Article 141 of the National Tax Collection Act; the same applies in the following item) or other articles, conducted in accordance with the rules of Article 141 of the National Tax Collection Act.

In the case under Article 613, paragraph (6), if a person, without justifiable grounds, fails to comply with a request by a municipal tax collection official for the presentation or submission of articles, made in accordance with the rules of Article 141 of the National Tax Collection Act, or presents or submits books and documents or other articles (including copies of them) containing false entries or records.

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.