Local Tax Act

When necessary to investigate a criminal tax case concerning local taxes (except in Article 22-7, hereinafter in this Subsection referred to as a "criminal tax case"), the competent tax collection official (meaning a tax collection official whose duties are specified and who is designated by the head of a local government; the same applies hereinafter in this Section) may require a suspect or a witness (hereinafter in this paragraph and paragraph (1) of the following Article referred to as a "suspect, etc.") to appear, question the suspect, etc., examine articles possessed or left behind by the suspect, etc., or take into custody articles voluntarily submitted or left behind by the suspect, etc.

The competent tax collection official may, in an investigation of a criminal tax case, make an inquiry to a government office or a public or private organization and request a report of necessary matters.

When necessary to investigate a criminal tax case, the competent tax collection official may, under a warrant issued in advance by a judge of the district court or summary court having jurisdiction over the location of the office of the local government to which the official belongs, conduct an official inspection, a search of the person, articles, residence or other place of a suspect, etc., a seizure of articles considered to be evidence or articles subject to confiscation, or an order to provide electronic or magnetic records (meaning an order directing a person listed in the following items to provide necessary electronic or magnetic records by the method specified in the relevant item (limited to one that specifies the electronic or magnetic records to be provided and the method of provision); the same applies hereinafter in this Section); provided, however, that with regard to the person, articles, residence or other place of a witness, a search may be conducted only where there are circumstances sufficient to find that articles to be seized exist.

a person who retains electronic or magnetic records: the method set forth in (a) or (b) below:

a method of causing electronic or magnetic records to be recorded on, or transferred to, a recording medium and having that recording medium submitted;

a method of causing electronic or magnetic records to be recorded on, or transferred to, a recording medium under the control of the person issuing the order, through a telecommunications line.

a person with authority to use electronic or magnetic records (excluding the person listed in the preceding item): the method set forth in (a) or (b) of the preceding item (limited to a method of causing electronic or magnetic records to be recorded on a recording medium).

Where the article to be seized is a computer, the competent tax collection official may, after copying electronic or magnetic records onto that computer or another recording medium from a recording medium connected to that computer by a telecommunications line that is in circumstances sufficient to find that it is being used to retain electronic or magnetic records created or modified by that computer, or electronic or magnetic records that can be modified or erased by that computer, seize that computer or that other recording medium.

Where the competent tax collection official issues an order to provide electronic or magnetic records and finds it necessary, the official may, with the permission of a judge of the district court or summary court having jurisdiction over the location of the office of the local government to which the official belongs, order the person receiving that order to provide electronic or magnetic records, for a period not exceeding one year, not to divulge without cause the fact of having received that order to provide electronic or magnetic records or the fact of having provided or not provided the electronic or magnetic records that were ordered to be provided by that order.

In the cases of the preceding three paragraphs, where urgency is required, the competent tax collection official may take the dispositions in the preceding three paragraphs under a warrant issued in advance by a judge of the district court or summary court having jurisdiction over the location of the articles or place to be inspected, the person, articles or place to be searched, the articles to be seized, or the person who is to be made to provide electronic or magnetic records.

When requesting a warrant under paragraph (1) or the preceding paragraph (except in Article 22-19, paragraphs (4) through (8), hereinafter in this Subsection referred to as a "warrant"), the competent tax collection official must provide materials showing that a criminal tax case exists.

In addition to being in writing, a warrant may be in the form of an electronic or magnetic record, as provided by the Rules of the Supreme Court.

Where the competent tax collection official has issued an order under the provisions of paragraph (3) and the need for it has ceased, the official must revoke it, either on the official's own initiative or at the request of the person who received that order.

When a request under paragraph (5) has been made, a judge of the district court or summary court must, in the case of issuing a warrant, issue to the competent tax collection official a warrant stating or recording the name of the suspect (for a corporation, its name), the name of the offense, the articles or place to be inspected, the person, articles or place to be searched, the articles to be seized, or the electronic or magnetic records to be provided, the person who is to provide them and the method of provision, the official title and name of the requester, the matters specified in each of the following items in accordance with the classification of cases listed in those items, the date of issuance, the name of the court, and other matters specified by the Rules of the Supreme Court:

where the warrant is in writing: the validity period, and a statement that after the expiration of that period execution may not be commenced and an order to provide electronic or magnetic records may not be issued, and that the warrant must be returned;

where the warrant is in the form of an electronic or magnetic record: the validity period, and a statement that after the expiration of that period execution may not be commenced and an order to provide electronic or magnetic records may not be issued, and that the official must take the measures specified by the Rules of the Supreme Court, such as erasing the warrant from the computer used by the competent tax collection official, and submit to that judge an electronic or magnetic record recording that those measures have been taken.

In the case of paragraph (2), a judge of the district court or summary court must state or record in the warrant, in addition to the matters prescribed in the preceding paragraph, the scope of the recording media connected by a telecommunications line to the computer to be seized from which electronic or magnetic records are to be copied.

A warrant must be one for which the measures specified in the relevant item have been taken, in accordance with the classification of cases listed in the following items:

where the warrant is in writing: the judge affixes the judge's name and seal;

where the warrant is in the form of an electronic or magnetic record: the judge takes the measure specified by the Rules of the Supreme Court in place of affixing a name and seal (limited to one by which, when the matters recorded in the warrant are displayed on the screen of a computer, on paper or on another medium, the name of that judge is also displayed).

When granting the permission under paragraph (3), a judge of the district court or summary court must state or record in the warrant that fact and the period for which the order not to divulge under the provisions of that paragraph is given.

The competent tax collection official may provide a warrant to another competent tax collection official of the local government to which the official belongs and have that official conduct the official inspection, search or seizure, or issue an order to provide electronic or magnetic records.

If necessary for investigating a criminal tax case, the competent tax collection official may, upon being issued a warrant, seize documents concerning postal items, items of correspondence delivery or telegrams sent by a suspect or sent to a suspect, which are kept or held by a person handling communications services under the provisions of laws and regulations.

The competent tax collection official may, upon being issued a warrant, seize documents concerning postal items, items of correspondence delivery or telegrams that do not fall under the provisions of the preceding paragraph and that are kept or held by a person handling communications services under the provisions of laws and regulations, only where there are circumstances sufficient to find that they are related to a criminal tax case.

If the competent tax collection official has taken a disposition under the provisions of the preceding two paragraphs, the official must notify the sender or recipient to that effect; provided, however, that this does not apply if there is a risk that the notification would impede the investigation of a criminal tax case.

If necessary for conducting a seizure or having electronic or magnetic records provided by an order to provide electronic or magnetic records, the competent tax collection official may request, in writing or by electronic or magnetic record, a person who operates a business of providing telecommunications facilities for the communications of others, or a person who has installed telecommunications facilities capable of mediating the communications of unspecified or many persons for the person's own business, to specify the necessary part of the electronic or magnetic records of communication history, such as the sender, the recipient and the date and time of telecommunications, that the person records in the course of that business, and not to erase them, specifying a period not exceeding 30 days. In this case, if the official has come to find that there is no need to conduct a seizure concerning the electronic or magnetic records pertaining to that request or to have those electronic or magnetic records provided by an order to provide electronic or magnetic records, the official must withdraw the request.

The competent tax collection official may, if especially necessary, extend the period for which a request not to erase has been made under the provisions of the preceding paragraph, within a range not exceeding 30 days; provided, however, that the period for which a request not to erase is made may not exceed 60 days in total.

When making a request under the provisions of paragraph (1), the competent tax collection official may, if necessary, request that matters relating to the request not be disclosed without good reason.

With regard to a criminal tax case concerning an indirect local tax (meaning the light oil delivery tax or any other local tax specified by Cabinet Order; the same applies hereinafter in this Section), if there is a person who is committing an offense or who has just finished committing an offense, and it is necessary to collect what is found to be evidence thereof and urgency is required so that a warrant cannot be issued, the competent tax collection official may conduct the on-site inspection, search or seizure under Article 22-4, paragraph (1) at the scene of the offense.

With regard to a criminal tax case concerning an indirect local tax, if there is a person who possesses an article used in an offense or an article obtained through an offense, or who is clearly found to have committed an offense a short time before because of conspicuous traces of the offense, and it is necessary to collect what is found to be evidence thereof and urgency is required so that a warrant cannot be issued, the competent tax collection official may conduct the on-site inspection, search or seizure under Article 22-4, paragraph (1) with regard to the articles possessed by that person.

If the article to be seized is a recording medium relating to electronic or magnetic records, the competent tax collection official may, in lieu of the seizure, take the following dispositions:

copying, printing out or transferring the electronic or magnetic records recorded on the recording medium to be seized onto another recording medium, and then seizing that other recording medium; or

having the person subject to the seizure copy, print out or transfer the electronic or magnetic records recorded on the recording medium to be seized onto another recording medium, and then seizing that other recording medium.

If necessary for conducting an on-site inspection, search or seizure, the competent tax collection official may unlock locks, open seals and take other necessary dispositions.

The dispositions set forth in the preceding paragraph may also be carried out with regard to retained articles, seized articles or recording media submitted pursuant to an order to provide electronic or magnetic records (limited to one that orders provision by the method listed in Article 22-4, paragraph (1), item (i), (a)).

Where the competent tax collection official has had electronic or magnetic records provided pursuant to an order to provide electronic or magnetic records (limited to one that orders provision by the method listed in Article 22-4, paragraph (1), item (i), (b)), the official may take measures to confirm the contents of those electronic or magnetic records and take other necessary dispositions.