Local Tax Act

In the case falling under paragraph (1) of the preceding Article, if the taxpayer filing returns has concealed or disguised all or part of the facts that are to be the basis of calculating the taxable quantity, and has filed a return, an amended return, or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as a "written request for reassessment" in the following paragraph) based on the facts so concealed or disguised, the prefectural governor must, as provided by Cabinet Order, collect, in place of the amount of the 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 tax deficiency resulting from the reassessment, or the tax amount increased by the amended return, that is to be the basis of its calculation, by a rate of 35 percent.

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

In the case falling under the preceding two paragraphs, if any of the following items applies (item (i) only, in the case falling under paragraph (1)), the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those provisions, the amount obtained by adding, to the amount calculated under those provisions, the amount calculated by multiplying by a rate of 10 percent, in the case falling under paragraph (1), the tax deficiency resulting from the reassessment, or the tax amount increased by the amended return, that is to be the basis of calculation prescribed in that paragraph, and in the case falling under the preceding paragraph, the tax amount that is to be the basis of calculation prescribed in that paragraph:

in the case where an additional charge for failure to file, etc. has been collected with respect to the tobacco tax during the period going back five years from the day preceding the day on which, based on the facts that are to be the basis of calculating the taxable quantity prescribed in the preceding two paragraphs and that have been concealed or disguised, a return was filed after the deadline for filing, an amended return was filed, or a reassessment or determination was made under Article 74-20, paragraphs (1) to (3);

in the case where a 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 falling under the preceding three paragraphs, if there are grounds prescribed in the proviso to paragraph (1) or in paragraph (6) of the preceding Article for the filing of the return or amended return, the prefectural governor does not collect the amount of substantial additional charge calculated on the basis of the tax amount to be paid by that filing or the tax amount increased by that amended return.

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

If a taxpayer filing returns or a taxpayer fails to pay in full the local government levies relating to the tobacco tax by the due date for payment (if a reassessment or determination has been made under Article 74-20, paragraphs (1) to (3), the due date for payment under Article 74-21, paragraph (1); the same applies hereinafter in this paragraph and in Article 74-27, paragraph (3)), 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 in the case of advance collection.

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

A prefectural tax collection official may, if the official has issued a demand letter, collect a fee as provided by Prefectural Ordinance of that prefecture.

If a person delinquent in payment of the tobacco 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 respect to the local government levies relating to that tobacco tax:

if the person delinquent in payment has received a demand and has not paid in full the local government levies relating to the tobacco tax subject to that demand by the day on which 10 days have elapsed, counting from the date on which the demand letter was issued;

if the person delinquent in payment has not paid in full the local government levies relating to the tobacco tax by the due date for payment specified by the notice concerning advance collection.

Where the provisions of the preceding paragraph are applied to a secondary taxpayer or a guarantor, the phrase "demand letter" in item (i) of that paragraph is deemed to be replaced with "written reminder to pay".

If, by the day on which the 10 days prescribed in paragraph (1), item (i) have elapsed after the due date for payment of the local government levies relating to the tobacco tax, a fact falling under any one of the items of Article 13-2, paragraph (1) has arisen with respect to a person delinquent in payment who has received a demand, a prefectural tax collection official may seize that person's property immediately.

If a compulsory liquidation procedure has been 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 (in the case of a request for share distribution of local government levies relating to the tobacco tax for a claim set forth in Article 114, item (i) of the Bankruptcy Act, the court handling the bankruptcy case relating to that request for share distribution) with respect to the delinquent local government levies relating to the tobacco tax.

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, delinquent tax collection procedures for the local government levies relating to tobacco tax are carried out in accordance with the rules for the delinquent tax collection procedure under the National Tax Collection Act.

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

If a taxpayer filing returns or a taxpayer of tobacco tax, with the purpose of evading the execution of delinquent tax collection procedures, conceals or damages the property of the person, disposes of it to the detriment of the prefecture, or commits an act of falsely increasing the burdens on that property, or alters its existing condition and thereby diminishes the value of that property or commits an act of increasing the expenses for the delinquent tax collection procedure relating to it, 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 as in the preceding paragraph where a third party in possession of the property of a taxpayer filing returns or a taxpayer commits the act referred to in that paragraph for the purpose of enabling the taxpayer filing returns or taxpayer to evade the execution of delinquent tax collection procedures.

A person who, knowing the circumstances, becomes the counterparty of a taxpayer filing returns or a taxpayer, or of a third party in possession of his or her property, in an act referred to in the preceding two paragraphs, and commits the violation as that 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 74-27, 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:

if, in the case referred to in Article 74-27, paragraph (6), the person fails to answer or makes a false statement in response to a question by a prefectural tax collection official conducted in accordance with the provisions of Article 141 of the National Tax Collection Act;

if, in the case referred to in Article 74-27, paragraph (6), the person refuses, obstructs or evades an inspection by a prefectural tax collection official, conducted in accordance with the provisions of Article 141 of the National Tax Collection Act, of books and documents (meaning the books and documents prescribed in that Article; the same applies in the following item) or other articles;

if, in the case referred to in Article 74-27, paragraph (6), the person, without justifiable grounds, fails to comply with a request by a prefectural tax collection official for the presentation or submission of articles, made in accordance with 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.

In the case referred to in Article 74-27, paragraph (6), a person who makes a false statement on a matter to be stated to the prefectural governor in accordance with 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.