Local Tax Act

A taxpayer filing returns for tobacco tax who pays that tobacco tax after the due date for payment under Article 74-10, paragraph (1) or (3) must pay it with an amount of delinquency charge added to the tax amount, equivalent to the amount calculated by multiplying it by a rate of 14.6 percent per annum (7.3 percent per annum for the period listed in each of the following items according to the classification of tax amount listed in that item), according to the number of days in the period from the day following that due date for payment to the date of payment:

tax amount relating to a return filed by its deadline for filing: the period up to the day on which one month elapses from the day following the due date for payment under Article 74-10, paragraph (1) or (3) relating to that tax amount;

tax amount relating to a return filed after its 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.

A taxpayer of tobacco tax who pays that tobacco tax after the due date for payment under Article 74-13, paragraph (1) (where the due date for payment has been extended, the extended due date for payment; the same applies hereinafter in this Section) must pay it with an amount of delinquency charge added to the tax amount, equivalent to the amount calculated by multiplying it by a rate of 14.6 percent per annum (7.3 percent per annum for the period up to the day on which one month has elapsed from the day following that due date for payment), according to the number of days in the period from the day following that due date for payment to the date of payment.

Where the prefectural governor finds that there are unavoidable reasons for a taxpayer filing returns or a taxpayer not having paid tobacco tax by the due date for payment under Article 74-10, paragraph (1) or (3) or the due date for payment under Article 74-13, paragraph (1), the governor may reduce or exempt the amount of delinquency charge referred to in the preceding two paragraphs.

Where a return is submitted by its deadline for filing (including the case where a return is submitted after its deadline for filing and the proviso to the following paragraph or paragraph (8) applies; the same applies hereinafter in this paragraph), and a reassessment under Article 74-20, paragraph (1) or (3) has been made or an amended return has been submitted, the prefectural governor must, except where the governor finds that there are justifiable grounds for the error in the tax amount relating to the return or amended return before that reassessment or amended return, collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the tax deficiency resulting from that reassessment or the tax amount increased by that amended return (hereinafter in this paragraph referred to as the "covered tax shortfall, etc.") by a rate of 10 percent (where the covered tax shortfall, etc. (where, before that reassessment or amended return, a reassessment has been made or an amended return has been submitted with respect to the tobacco tax relating to that reassessment or amended return, the amount obtained by adding to it the total of the tax deficiency resulting from that earlier reassessment or the tax amount increased by that earlier amended return (where it is found that there were justifiable grounds for the error in the tax amount relating to the return or amended return before that earlier reassessment or amended return, the amount after deducting the tax deficiency resulting from that earlier reassessment or the tax amount increased by that earlier amended return, and where, with respect to that tobacco tax, there has been a reassessment reducing the tax amount payable, or a change of the original disposition by a ruling or judgment on a request for review or suit relating to a reassessment, the amount after deducting the amount equivalent to the tax amount of the portion reduced by them)) exceeds the greater of the amount equivalent to the tax amount relating to the return in the case where the return was submitted by its deadline for filing and 500,000 yen, the amount obtained by adding the amount calculated by multiplying the amount equivalent to the excess portion (where the covered tax shortfall, etc. is less than the amount equivalent to the excess portion, the covered tax shortfall, etc.) by a rate of 5 percent); provided, however, that this does not apply where an amended return has been submitted and its submission was not made with foreknowledge that a reassessment under Article 74-20, paragraph (1) or (3) would be made with respect to the amount of tobacco tax relating to that amended return.

In any of the following cases, the prefectural governor must collect an amount of additional charge for failure to file equivalent to the amount calculated by multiplying the tax amount payable as a result of the filing, determination or reassessment prescribed in each item by a rate of 15 percent; provided, however, that this does not apply where it is found that there were justifiable grounds for the return not having been submitted by its deadline for filing.

where a return is submitted after its deadline for filing, or a determination under Article 74-20, paragraph (2) is made;

where, after a return has been submitted after its deadline for filing, an amended return is submitted or a reassessment under Article 74-20, paragraph (1) or (3) is made;

where, after a determination under Article 74-20, paragraph (2) has been made, an amended return is submitted or a reassessment under paragraph (3) of that Article is made.

Where, in a case falling under the preceding paragraph (excluding where the proviso to that paragraph or paragraph (8) applies; the same applies in the following paragraph and paragraph (5)), the tax amount payable prescribed in the preceding paragraph (in the case of item (ii) or (iii) of that paragraph, the amount obtained by adding to it the total of the tax amounts payable by a filing after the deadline for filing the return relating to that tobacco tax made before the amended return or reassessment prescribed in those items, or by a reassessment or determination under Article 74-20, paragraphs (1) through (3) (where there has been a reassessment reducing the tax payable, or a change of the original disposition by a ruling or judgment on a request for review or suit relating to a reassessment, the amount after deducting the amount equivalent to the tax amount of the portion reduced by them; referred to in the following paragraph as the "cumulative paid tax amount"); referred to in the following paragraph as the "cumulative paid tax amount after addition") exceeds 500,000 yen, the amount of additional charge for failure to file prescribed in the preceding paragraph is, notwithstanding the provisions of that paragraph, the amount obtained by adding, to the amount calculated pursuant to the provisions of that paragraph, the amount calculated by multiplying the amount equivalent to the excess portion (where the tax amount payable prescribed in that paragraph is less than the amount equivalent to that excess portion, that tax amount payable) by a rate of 5 percent.

In the case falling under paragraph (2), if the cumulative paid tax amount after addition (or, where among the facts forming the basis of calculating that cumulative paid tax amount after addition there is a fact that was not made the basis of calculating the tax amount (including the tax amount equivalent to the amount of a refund) before the filing, determination or reassessment prescribed in the items of that paragraph, and it is found that there are no grounds attributable to the taxpayer filing returns for this, the tax amount after deducting the amount calculated, as provided by Cabinet Order, as the tax amount based on that fact) exceeds 3,000,000 yen, the amount of the additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding two paragraphs, the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative paid tax amount after addition into the amounts set forth in the following items and multiplying each amount by the rate provided respectively in those items, the total of the amounts calculated by dividing the cumulative paid tax amount into the amounts set forth in those items and multiplying each amount by the rate provided respectively in those items:

the amount equivalent to the portion of 500,000 yen or less: a rate of 15 percent;

the amount equivalent to the portion exceeding 500,000 yen and not exceeding 3,000,000 yen: a rate of 20 percent;

the amount equivalent to the portion exceeding 3,000,000 yen: a rate of 30 percent.

In the case falling under paragraph (2), if any of the following items applies, the amount of the additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, the amount obtained by adding, to the amount calculated under those provisions, the amount calculated by multiplying the tax amount to be paid as prescribed in paragraph (2) by a rate of 10 percent:

in the case where, during the period going back five years from the day preceding the day on which a return was filed after the deadline for filing, an amended return was filed (limited to a filing made in anticipation that a reassessment or determination would be made under Article 74-20, paragraphs (1) to (3) with respect to the tobacco tax relating to that return or amended return; the same applies in the following item), or a reassessment or determination was made under paragraphs (1) to (3) of that Article, an additional charge for failure to file (excluding one to which the following paragraph applies; the same applies in the following item) or a substantial additional charge (each referred to as an "additional charge for failure to file, etc." in paragraph (3), item (i) of the following Article) has been collected with respect to the tobacco tax;

in the case where an additional charge for failure to file or a substantial additional charge (limited to those to which paragraph (2) of the following Article applies) (hereinafter in this item and in paragraph (3), item (ii) of the following Article referred to as "specified additional charge for failure to file, etc.") has been collected with respect to tobacco tax for which tax liability arose in the year preceding, or the year before the previous year, the year that includes the day on which tax liability arose for the tobacco tax relating to the filing of a return after the deadline for filing, the filing of an amended return, or a reassessment or determination under Article 74-20, paragraphs (1) to (3), or where it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case where a return is filed after the deadline for filing or an amended return is filed, if that filing was not made in anticipation that a reassessment or determination would be made under Article 74-20, paragraphs (1) to (3) with respect to the tobacco tax relating to that return or amended return, the amount of the additional charge for failure to file prescribed in paragraph (2) relating to the tax amount for that return or amended return is, notwithstanding paragraphs (2) to (4), the amount equivalent to the amount calculated by multiplying that tax amount by a rate of 5 percent.

When the prefectural governor has determined the amount of the additional charge for understatement to be collected under paragraph (1) or the amount of the additional charge for failure to file to be collected under paragraph (2), the governor must notify the taxpayer filing returns without delay.

The provisions of paragraph (2) do not apply where a return falling under paragraph (6) has been filed, if the filing was made in a case specified by Cabinet Order as one in which it is found that there was an intention to file by the deadline for filing, and was made by the day on which one month has elapsed from the deadline for filing.