Local Tax Act

In the case falling under the provisions of paragraph (1) of the preceding Article, where a special collection agent has concealed or disguised all or part of the facts that are to form the basis for calculating the total number of the tax base, and has filed a return or a written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to in the following paragraph as the "written request for reassessment") based on the facts concealed or disguised, the prefectural governor must, as provided by Cabinet Order, collect, in place of the amount of additional charge for understatement prescribed in paragraph (1) of the preceding Article, an amount of substantial additional charge equivalent to the amount calculated by multiplying the shortfall amount resulting from the correction that is to form the basis of its calculation by 35 percent.

In the case falling under the provisions of paragraph (2) of the preceding Article (excluding the case where the proviso to that paragraph applies), where a special collection agent has concealed or disguised all or part of the facts that are to form the basis for calculating the total number of the tax base, and, based on the facts concealed or disguised, has failed to file a return by the deadline for filing, or has filed a return after the deadline for filing, or has filed a written request for reassessment, the prefectural governor must, in place of the amount of additional charge for failure to file prescribed in that paragraph, collect an amount of substantial additional charge equivalent to the amount calculated by multiplying the amount of tax that is to form the basis of its calculation by 40 percent.

In the case falling under the preceding two paragraphs, when any of the following items applies (item (i) in the case falling under paragraph (1)), the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those paragraphs, the amount calculated under those paragraphs plus the amount calculated by multiplying, by a rate of 10 percent, in the case falling under paragraph (1), the shortfall amount due to the reassessment forming the basis for calculation prescribed in that paragraph, and in the case falling under the preceding paragraph, the tax amount forming the basis for calculation prescribed in that paragraph.

in the case where, based on the facts concealed or disguised that are to form the basis for calculating the total number of the tax base prescribed in the preceding two paragraphs, an additional charge for failure to file, etc. has been collected for the golf course use tax during the period up to the day five years before the day preceding the day on which a return was filed after the deadline for filing or a reassessment or determination under the provisions of Article 87, paragraphs (1) through (3) was made;

in the case where, with regard to golf course use tax for which the special collection obligation arose in the year preceding and the year before the year in which falls the day on which the special collection obligation arose for the golf course use tax pertaining to a return filed after the deadline for filing or a reassessment or determination under the provisions of Article 87, paragraphs (1) through (3), a specified additional charge for failure to file, etc. has been collected, or it is found that a determination pertaining to a specified additional charge for failure to file, etc. should be made.

In the case falling under the preceding two paragraphs, if there is a reason prescribed in paragraph (6) of the preceding Article for the filing of the return, the prefectural governor does not collect the amount of substantial additional charge calculated on the basis of the amount of tax pertaining to the remittance return.

When a prefectural governor has determined the amount of substantial additional charge to be collected under paragraph (1) or (2), the governor must notify the special collection agent of it without delay.

Where a special collection agent does not pay in full the local government levies pertaining to the golf course use tax by the due date for payment (where a reassessment or determination has been made, meaning the due date for payment of the shortfall amount; the same applies hereinafter with regard to the golf course use tax), a prefectural tax collection official must issue a demand letter within 20 days after the due date for payment; provided, however, that this does not apply where advance collection is to be carried out.

A prefecture in special circumstances may, by a Prefectural Ordinance of that prefecture, provide for a period different from the period prescribed in the preceding paragraph.

When a prefectural tax collection official has issued a demand letter, the official may collect a fee in accordance with the Prefectural Ordinance of the prefecture concerned.

When a person delinquent in payment of the golf course use tax falls under any one of the following items, a prefectural tax collection official must seize the property of the person delinquent in payment with regard to the local government levies pertaining to the golf course use tax:

when the person delinquent in payment has received a demand and has not paid in full the local government levies pertaining to the golf course use tax subject to the demand by the day on which 10 days have elapsed, counting from the day on which the demand letter was issued;

when the person delinquent in payment has not paid in full the local government levies pertaining to the golf course use tax by the due date for payment designated by the notice pertaining to 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 deemed to be replaced with "written reminder to remit".

Where, by the day on which the 10 days prescribed in paragraph (1), item (i) elapse after the due date for payment of the local government levies pertaining to the golf course use tax, 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 prefectural tax collection official may immediately seize the property.

Where a compulsory liquidation procedure is carried out with respect to the property of a person delinquent in payment, a prefectural tax collection official must make a request for share distribution to the enforcement agency (where making a request for share distribution of local government levies pertaining to the golf course use tax pertaining to a claim listed in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case pertaining to the request for share distribution) for the local government levies pertaining to the golf course use tax that are in arrears.

When a prefectural tax collection official is able to make a seizure under paragraphs (1) through (3), and property of a person delinquent in payment set out 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 other local government levies or national taxes, or by a disposition governed by the rules of those delinquent tax collection procedures, the request for share distribution for that property may be made by participatory seizure.

In addition to what is provided for in the preceding paragraphs, the delinquent tax collection procedure for the local government levies pertaining to the golf course use tax is carried out in accordance with the rules for the delinquent tax collection procedure prescribed in the National Tax Collection Act.

Dispositions under the preceding paragraphs may also be carried out outside the area of the prefecture concerned.

If a special collection agent for the golf course use tax, with the purpose of evading the execution of the delinquent tax collection procedure, has concealed or damaged the property, or disposed of it to the detriment of the prefecture, or engaged in an act of falsely increasing the encumbrances on the property, or has altered its current state and thereby engaged in an act of reducing the value of the property or increasing the expenses for the delinquent tax collection procedure pertaining to that 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 special collection agent commits an act referred to in the preceding paragraph for the purpose of enabling the special collection agent to evade the execution of a delinquent tax collection procedure.

If a person, knowing the circumstances, becomes the counterparty of the special collection agent 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 94, paragraph (6), where a person violates, without justifiable grounds, an order of a prefectural 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 referred to in Article 94, paragraph (6), if the person fails to answer, or makes a false statement in response to, questions by a prefectural tax collection official conducted in accordance with the rules of the provisions of Article 141 of the National Tax Collection Act;

in the case referred to in Article 94, paragraph (6), if the person refuses, obstructs or evades an inspection by a prefectural 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 the provisions of Article 141 of the National Tax Collection Act;

in the case referred to in Article 94, paragraph (6), if the person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official to present or submit articles, made in accordance with the rules of the provisions of Article 141 of the National Tax Collection Act, or presents or submits books and documents or other articles (including copies thereof) 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.

A person who, in the case referred to in Article 94, paragraph (6), has made a false statement on a matter that is to be stated to the prefectural governor in accordance with the rules of the provisions of Article 99-2 of the National Tax Collection Act (including as applied mutatis mutandis pursuant to Article 109, paragraph (4) of that Act) is to be punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.

A prefecture is to distribute to each municipality (including special wards; the same applies hereinafter in this Article) in the prefecture in which a golf course is located, as provided by Order of the Ministry of Internal Affairs and Communications, an amount equivalent to seven-tenths of the amount of the golf course use tax remitted to the prefecture that pertains to the golf courses located in that municipality.