Local Tax Act

If a person, in violation of paragraph (1) of the preceding Article, has performed an act set forth in item (i) or (ii) of that paragraph without obtaining the approval of the prefectural governor, or, having obtained the approval under that paragraph by deception or other wrongful means, has performed an act set forth in item (i) or (ii) of that paragraph, the person who committed the violation is to be punished by imprisonment for not more than 10 years or a fine of not more than 10,000,000 yen, or both.

A person who, knowingly, provides or transports funds, land, buildings, ships, vehicles, equipment, machinery, instruments, raw materials or chemicals necessary for an act constituting an offense under the preceding paragraph is to be punished, as the person who committed the violation, by imprisonment for not more than seven years or a fine of not more than 7,000,000 yen, or both.

If a person, knowingly, transports, stores, acquires for value or free of charge, or brokers or mediates the disposal of hydrocarbon oil pertaining to an offense under paragraph (1), 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 3,000,000 yen, or both.

If a person, in violation of the provisions of paragraph (1) of the preceding Article, performs an act referred to in item (iii) or (iv) of that paragraph without obtaining the approval of the prefectural governor, or obtains the approval referred to in that paragraph by deception or other wrongful means, the person who committed the violation is to be punished by imprisonment for not more than two years or a fine of not more than 1,000,000 yen.

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 where the person, in violation of the provisions of paragraph (3) of the preceding Article, fails to keep books, fails to make entries in the books or makes false entries in them, or conceals the books;

In the case where the person violates the provisions of paragraphs (5) through (8) of the preceding Article.

Where a representative of a juridical person, or an agent, employee or other worker of a juridical person or an individual, commits a violation referred to in the preceding paragraphs in connection with the business of that juridical person or individual, in addition to punishing the offender, the fine specified in each of the following items for the category of violation set forth in that item is to be imposed on that juridical person, and the fine prescribed in the relevant paragraph is to be imposed on that individual:

A violation referred to in paragraph (1): a fine of not more than 300,000,000 yen;

A violation referred to in paragraph (2): a fine of not more than 200,000,000 yen;

A violation referred to in paragraph (3): a fine of not more than 100,000,000 yen;

A violation referred to in the preceding two paragraphs: the fine prescribed in the relevant paragraph.

In the case where a fine is imposed on a juridical person or individual pursuant to the preceding paragraph for a violation referred to in paragraph (1) or (2), the period of prescription is governed by the period of prescription for the offenses under those paragraphs.

A primary distributor, contracted dealer, petroleum product seller and light oil manufacturer, etc. (meaning a person whose business is the manufacture or importation of light oil, other than a primary distributor; the same applies hereafter in this Section) must, when intending to commence business, notify that fact, for each such office or place of business, to the prefectural governor of the location of the principal office or place of business (in the case of a primary distributor, to the Minister for Internal Affairs and Communications via that prefectural governor). The same applies when intending to discontinue or suspend that business.

When a primary distributor or light oil manufacturer, etc. has concluded with a contracted dealer, petroleum product seller or light oil manufacturer, etc. a sales contract for the continuous supply of light oil, the parties must notify that fact to the prefectural governor of the location of the principal office or place of business (in the case of a primary distributor, to the Minister for Internal Affairs and Communications via that prefectural governor). The same applies when the sales contract has ended.

A primary distributor, contracted dealer, petroleum product seller and light oil manufacturer, etc. must, if a change occurs in the matters notified under the provisions of the preceding two paragraphs, notify that fact without delay to the Minister for Internal Affairs and Communications or the prefectural governor in accordance with those paragraphs.

The prefectural governor who has received a notification under the provisions of the preceding three paragraphs is to promptly notify the governors of the relevant prefectures of the matters pertaining to that notification.

In addition to what is provided for in the preceding paragraphs, necessary matters concerning notifications and notices under these provisions are specified by Order of the Ministry of Internal Affairs and Communications.

A primary distributor, contracted dealer and light oil manufacturer, etc. must report, by the last day of each month, the facts concerning the taking delivery, handover, supply, manufacture and importation of light oil carried out during the period from the first day to the last day of the preceding month and the quantities thereof, the quantity of light oil in stock on the last day of the preceding month, and other matters specified by Order of the Ministry of Internal Affairs and Communications, to the prefectural governor specified by Order of the Ministry of Internal Affairs and Communications.

A person other than those prescribed in the preceding paragraph must, if the person has manufactured light oil, report the facts concerning the manufacture of light oil and the quantity thereof and other matters specified by Order of the Ministry of Internal Affairs and Communications, to the prefectural governor specified by Order of the Ministry of Internal Affairs and Communications, within 30 days from the date of that manufacture.

A person prescribed in the preceding two paragraphs must, if a change occurs in the matters reported under these provisions, report that fact without delay to the prefectural governor referred to in these provisions.

The prefectural governor who has received a report under the provisions of the preceding three paragraphs is to promptly notify the governors of the relevant prefectures of the matters pertaining to that report.

A primary distributor must, if a contracted dealer has supplied, on the instruction of that contracted dealer, light oil of which that contracted dealer took delivery from that primary distributor, notify that contracted dealer of the facts concerning that supply and other matters specified by Order of the Ministry of Internal Affairs and Communications.

A person who has taken delivery of light oil prescribed in Article 144-2, paragraph (1) or (2) must submit to the special collection agent pertaining to that taking delivery a document stating, for each of its offices or places of business, the quantity of light oil supplied to it and other matters specified by Order of the Ministry of Internal Affairs and Communications.

The special collection agent referred to in the preceding paragraph must, as specified by Order of the Ministry of Internal Affairs and Communications, retain the documents submitted under the provisions of that paragraph.

In addition to what is provided for in the preceding paragraphs, necessary matters concerning reports, notices, and the submission and retention of documents under these provisions are specified by Order of the Ministry of Internal Affairs and Communications.

A primary distributor, contracted dealer, petroleum product seller and light oil manufacturer, etc. must keep books and, as specified by Order of the Ministry of Internal Affairs and Communications, enter in them the facts concerning the taking delivery, handover, supply, storage and consumption of light oil or fuel hydrocarbon oil.

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 where the person fails to make, or makes a false, notification under the provisions of Article 144-34, paragraphs (1) through (3);

In the case where the person fails to make, or makes a false, report under the provisions of Article 144-35, paragraphs (1) through (3) or notice under the provisions of paragraph (5) of that Article;

In the case where the person fails to submit the document under the provisions of Article 144-35, paragraph (6), or submits one containing false statements;

In the case where the person violates the provisions of Article 144-35, paragraph (7);

In the case where the person, in violation of the provisions of the preceding Article, fails to keep books, fails to make entries in the books or makes false entries in them, or conceals the books.

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

Where the Minister for Internal Affairs and Communications finds it necessary in order to ensure the proper administration of the collection of the light oil delivery tax, the Minister may have an official designated by the Minister (hereinafter in this Article through Article 144-39 referred to as an "official designated by the Minister for Internal Affairs and Communications") question the following persons, inspect books and documents and other articles relating to their business, or request presentation or submission of those articles (including copies thereof):

a primary distributor, a person who has applied for designation as a primary distributor, or any other person found to fall under any of the items of Article 144-7, paragraph (1);

a person who takes delivery of light oil or other petroleum products from a person referred to in the preceding item.

In the case referred to in the preceding paragraph, the official designated by the Minister for Internal Affairs and Communications concerned may collect the minimum necessary quantity of light oil or other petroleum products as samples.

In the cases referred to in the preceding two paragraphs, the official designated by the Minister for Internal Affairs and Communications concerned must carry an identification card certifying the official's status and present it when requested by a person concerned.

An official designated by the Minister for Internal Affairs and Communications may, as specified by Cabinet Order, retain articles submitted under the provisions of paragraph (1).

The authority of an official designated by the Minister for Internal Affairs and Communications prescribed in paragraph (1), paragraph (2) or the preceding paragraph must not be construed as having been granted for the purpose of criminal investigation.