Local Tax Act

If a person evades the whole or part of the special land holding tax by deception or other wrongful acts, the person who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 1,000,000 yen, or both.

If the amount of tax evaded under the preceding paragraph exceeds 1,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 1,000,000 yen and not exceeding the amount equivalent to the amount of tax evaded.

In addition to what is prescribed in paragraph (1), if a person evades the whole or part of the special land holding tax by failing to file the return under Article 599, paragraph (1) by the deadline for filing the return prescribed in the items of that paragraph, 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 500,000 yen, or both.

Where the amount of tax evaded as referred to in the preceding paragraph exceeds 500,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding the provisions of that paragraph, be an amount exceeding 500,000 yen and not exceeding the amount equivalent to the amount of tax evaded.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or a person, has committed a violation under paragraph (1) or (3) in connection with the business or property of that corporation or person, in addition to punishing the offender, the fines prescribed in those paragraphs are to be imposed on that corporation or person.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of prescription is the same as that for the offense referred to in paragraph (1).

Where the mayor of a municipality, for the purpose of the assessment and collection of the special land holding tax, requests the government to allow inspection or recording of a return or amended return filed with the government by an individual or corporation that is a person liable for the special land holding tax and is liable for income tax or corporation tax, or of documents relating to a reassessment or determination made by the government concerning the tax base or tax amount of that individual or corporation, the government is to allow the mayor of the municipality or a staff member designated by the mayor to inspect or record the relevant documents.

The mayor of the municipality may reduce or exempt the special land holding tax, in accordance with the Municipal Ordinance of that municipality, only for a person whom the mayor finds to need a reduction or exemption of the special land holding tax where there are special circumstances such as a natural disaster, and for any other person who has special circumstances.

If a return under Article 599, paragraph (1) (referred to as the "return" in this Section) or an amended return under Article 600, paragraph (2) (referred to as the "amended return" in this Section) has been filed, and the tax base amount or tax amount relating to that return or amended return differs from what the mayor of the municipality has found by examination, the mayor is to reassess it.

If a person who is to file a return has not filed that return, the mayor of the municipality is to determine, by examination, the tax base amount and tax amount that should have been reported.

If the mayor of the municipality comes to know that there is an excess or shortfall in the tax base amount or tax amount reassessed under paragraph (1) or this paragraph or determined under the preceding paragraph, the mayor is to reassess it by examination.

If the mayor of the municipality has made a reassessment or determination under the preceding three paragraphs, the mayor must notify the taxpayer of it without delay.

If a reassessment or determination under paragraphs (1) to (3) of the preceding Article has been made and there is a tax deficiency (meaning the tax deficiency by reassessment or the tax amount by determination; the same applies hereinafter in this Section), a municipal tax collection official must collect it, with the due date for payment being the day on which one month elapses from the day on which the notification under paragraph (4) of that Article was given.

In the case referred to in the preceding paragraph, an amount of delinquency charge calculated by multiplying the tax deficiency by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the due date for payment referred to in the preceding paragraph (for tax amounts for which collection was deferred under Article 601, paragraph (3) or (4) (including where these provisions are applied mutatis mutandis under Article 602, paragraph (2) and Article 603-2-2, paragraph (2)), Article 603, paragraph (3) or Article 603-2, paragraph (5), the last day of the period of that deferral; the same applies hereinafter in this paragraph), or for the period up to the day on which one month elapses from the day following that due date for payment), according to the number of days in the period from the day following the due date for payment under Article 599, paragraph (1) to the day of payment, must be added and collected.

If the mayor of the municipality finds that there is an unavoidable reason for a taxpayer having received a reassessment or determination under paragraphs (1) to (3) of the preceding Article, the mayor may reduce or exempt the amount of delinquency charge referred to in the preceding paragraph.

When a taxpayer of the special land holding tax pays the tax after the due date for payment under Article 599, paragraph (1), the taxpayer must pay it with an amount of delinquency charge added, which is the amount calculated by multiplying that tax amount by a rate of 14.6 percent per annum (7.3 percent per annum for the periods listed in the following items, according to the category of tax amount listed in each item), according to the number of days in the period from the day following the due date for payment referred to in that paragraph to the day of payment.

The tax amount relating to a return filed by the deadline for filing (excluding the tax amount listed in item (iv); the same applies in the following item and item (iii)): the period up to 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 filed after the deadline for filing: the period up to the day of that filing, or the period up to the day on which one month elapses from the day following that day.

Tax amount relating to an amended return: the period up to the day on which the amended return was filed, or the period up to the day on which one month elapses from the day following that day

Tax amount for which collection was deferred under Article 601, paragraph (3) or (4) (including as applied mutatis mutandis under Article 602, paragraph (2) and Article 603-2-2, paragraph (2)), Article 603, paragraph (3) or Article 603-2, paragraph (5): the period of that deferral, or the period up to the day on which one month elapses from the day following the last day of that period

The mayor of the municipality may reduce or exempt the amount of delinquency charge under the preceding paragraph if the mayor finds that there are unavoidable grounds for the taxpayer's failure to pay the tax by the due date for payment under Article 599, paragraph (1).