Local Tax Act

The Organization must, as provided by Order of the Ministry of Internal Affairs and Communications, keep and preserve books stating the matters concerning tax work handled by the Organization that are specified by Order of the Ministry of Internal Affairs and Communications.

The Organization must, at least once every year, prepare a report on the status of implementation of tax work handled by the Organization, as provided by Order of the Ministry of Internal Affairs and Communications, and make it public.

If the Organization finds that, due to a malfunction of the electronic data processing system for local tax procedures or the electronic data processing system for specified collection money procedures (meaning an electronic data processing system that connects with one another, by telecommunications lines, the computers (including input-output devices) used by the Organization (including, where the Organization has entrusted part of the affairs of receiving specified collections (meaning the specified collections prescribed in Article 747-6, paragraph (2); the same applies hereinafter in this Article) to a specified financial institution, etc. prescribed in Article 747-6, paragraph (3), that specified financial institution, etc.) and by persons liable for tax or special collection agents who pay or remit specified collections (including, where the Organization has designated a payment agent designated by the Organization (meaning a payment agent designated by the Organization prescribed in Article 747-8, paragraph (1); the same applies hereinafter in this Article), that payment agent designated by the Organization (including, where that payment agent designated by the Organization has entrusted part of the payment affairs prescribed in Article 747-8, paragraph (1) to a person specified by Cabinet Order prescribed in Article 747-9 pursuant to the provisions of Article 747-9, that person)); the same applies hereinafter in this Article) or for any other unavoidable reason, all or some of the persons who give the notices set forth in Article 762, item (i), (a) are unable to give those notices by using the electronic data processing system for local tax procedures and via the Organization, or all or some of the persons who pay or remit specified collections are unable to make that payment or remittance by using the electronic data processing system for specified collection money procedures (excluding the case where the event that was the reason is a minor one specified by Order of the Ministry of Internal Affairs and Communications), the Organization must immediately report to the Minister for Internal Affairs and Communications the circumstances of that event and other matters specified by Order of the Ministry of Internal Affairs and Communications.

The fiscal year of the Organization starts on April 1 of each year and ends on March 31 of the following year.

The Organization must prepare a budget and a business plan (referred to as "budget, etc." in the following paragraph and paragraph (3)) for each fiscal year.

When the Organization has prepared or changed its budget, etc., it must without delay notify the Minister for Internal Affairs and Communications of it.

When the Organization has made the notification under the preceding paragraph, it must without delay make its budget, etc. public.

Each fiscal year, the Organization must prepare a balance sheet, a profit and loss statement, other documents specified by an Order of the Ministry of Internal Affairs and Communications, and their detailed statements (referred to as the "financial statements" in this Article and Article 802, item (vii)), and submit them to the Minister for Internal Affairs and Communications within three months after the end of that fiscal year.

When the Organization submits the financial statements under the preceding paragraph, it must attach to them the business report for that fiscal year and the statement of accounts prepared in accordance with the budget classifications, and also attach the auditor's written opinion on the financial statements and the statement of accounts.

When the Organization has submitted the financial statements under paragraph (1), it must, without delay, give public notice of those financial statements in the Official Gazette, and keep those financial statements, the business report and statement of accounts prescribed in the preceding paragraph, and the auditor's written opinion at each of its offices and make them available for public inspection for the period specified by an Order of the Ministry of Internal Affairs and Communications.

When the Organization has submitted the financial statements under paragraph (1), it may, without delay and as provided by an Order of the Ministry of Internal Affairs and Communications, take measures to place the information constituting the content of those financial statements in a state in which an unspecified large number of persons can continuously receive it by electronic means (meaning a method using an electronic data processing system or another method using information and communications technology that is specified by an Order of the Ministry of Internal Affairs and Communications) until the date on which five years have passed after the day on which the representatives' meeting adopted a resolution on the settlement of accounts for that fiscal year. In this case, the provisions of the preceding paragraph (limited to the part relating to the public notice under that paragraph) do not apply.

The costs required for the operation of the Organization are borne by the local governments as provided by the articles of incorporation.

In addition to what is provided for in Article 791 to the preceding Article, necessary matters concerning the finance and accounting of the Organization are specified by an Order of the Ministry of Internal Affairs and Communications.

If the Minister for Internal Affairs and Communications finds that the Organization has violated, or is likely to violate, this Act, an order under this Act, or its articles of incorporation, or finds it necessary to ensure the proper performance of the tax work handled by the Organization, the Minister may have the Organization report on the state of its business and its assets and liabilities, or have the Minister's officials enter an office of the Organization and inspect the state of its business or its books, documents and other articles.

An official must, when conducting an on-site inspection pursuant to the provisions of the preceding paragraph, carry a certificate showing the official's status and present it to the person concerned.

The authority to conduct an on-site inspection under paragraph (1) must not be interpreted as having been granted for the purpose of a criminal investigation.

If the Minister for Internal Affairs and Communications finds that an act of the Organization, or of its officers or employees or members of the representatives' meeting, violates, or is likely to violate, this Act, an order under this Act, or the articles of incorporation, the Minister may request the Organization to take the measures necessary to correct that act.

When the Organization has received a request from the Minister for Internal Affairs and Communications under the preceding paragraph, it must promptly take measures to correct the act concerned and other measures that it finds necessary, and report the content of those measures to the Minister for Internal Affairs and Communications.

If the Minister for Internal Affairs and Communications finds it necessary to ensure the proper performance of the tax work handled by the Organization, the Minister may issue to the Organization any order necessary for supervision with regard to the performance of the tax work handled by the Organization.

The dissolution of the Organization is provided for separately by Act.

A person who has violated the provisions of Article 788 is to be punished by imprisonment for not more than two years or a fine of not more than 1,000,000 yen.

If any of the following items applies, the officer or employee of the Organization who committed the violation is to be punished by a fine of not more than 300,000 yen.

if the person has violated the provisions of Article 789 by failing to keep books, failing to make entries in the books, making a false entry in the books, or failing to retain the books;

if the person has failed to make a report under Article 796, paragraph (1) or has made a false report, or has refused, obstructed or evaded an inspection under that paragraph.

If any of the following items applies, the officer of the Organization who committed the violation is to be punished by a non-penal fine of not more than 200,000 yen.

if the person has violated Article 765, paragraph (2) by failing to obtain authorization for an amendment to the articles of incorporation;

if the person has violated Article 766, paragraph (1) by neglecting to make a registration;

if the person has failed to make a notification under Article 773, paragraph (3), Article 776, paragraph (4), Article 783, paragraph (1) or Article 792, paragraph (2), or has made a false notification;

if the person has conducted business other than that prescribed in Article 782;

if the person has failed to make an announcement under Article 783, paragraph (3) or Article 792, paragraph (3), or has made a false announcement.

if the person has violated Article 793, paragraph (1) or (2) by failing to submit the documents prescribed in those provisions, or has submitted those documents without entering the matters to be entered in them or with a false entry;

if the person has violated Article 793, paragraph (3) by failing to give public notice of the financial statements, or has failed to keep the documents prescribed in that paragraph or to make them available for public inspection;

if the person has failed to make a report under Article 797, paragraph (2) or has made a false report.

A person who has violated Article 767, paragraph (2) is to be punished by a non-penal fine of not more than 100,000 yen.