Local Tax Act

When the remittance return has been filed by its deadline for filing (including the case where, the remittance return having been filed after its deadline for filing, the proviso to paragraph (3) or paragraph (9) applies; the same applies in the following paragraph) and a reassessment has been made under Article 71-32, paragraph (1) or (3), the prefectural governor, if the governor finds that there was no justifiable ground for the error in the amount of the tax base or the tax amount relating to the remittance return before that reassessment, must collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the shortfall amount due to that reassessment (referred to as the "covered shortfall" in the following paragraph) by a rate of 10 percent.

In the case falling under the preceding paragraph, when the covered shortfall (if a reassessment was made, before that reassessment, of the dividend levy relating to that reassessment, the amount obtained by adding to it the total of the shortfall amounts due to the earlier reassessment (where it was found that there was a justifiable ground for the error in the amount of the tax base or the tax amount relating to the remittance return before that reassessment, the amount after deducting the shortfall amount due to that reassessment, and where there has been a reassessment reducing the amount to be remitted for that dividend levy, or a change of the original disposition due to a ruling or judgment on a request for review or an action relating to a reassessment, the amount after deducting the amount equivalent to the portion reduced thereby)) exceeds the greater of the amount equivalent to the tax amount relating to the remittance return in the case where it was filed by its deadline for filing and 500,000 yen, the amount of additional charge for understatement prescribed in that paragraph is, notwithstanding that paragraph, the amount calculated under that paragraph plus the amount calculated by multiplying the amount equivalent to the portion in excess (if the covered shortfall is less than the amount equivalent to the portion in excess, the covered shortfall) by a rate of five percent.

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 to be remitted by the remittance return, determination or reassessment prescribed in each such 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 remittance return not having been submitted by the deadline for filing it.

where the remittance return has been filed after its deadline for filing, or a determination has been made under Article 71-32, paragraph (2)

where, after the remittance return was filed after its deadline for filing, a reassessment has been made under Article 71-32, paragraph (1) or (3)

where a reassessment has been made under Article 71-32, paragraph (3) after a determination under paragraph (2) of that Article

In the case falling under the provisions of the preceding paragraph (excluding the case where the proviso to that paragraph or the provisions of paragraph (9) apply; the same applies in the following paragraph and paragraph (6)), where the tax amount to be remitted prescribed in the preceding paragraph (in the case falling under item (ii) or (iii) of that paragraph, the amount obtained by adding the total of the tax amounts to be remitted through a remittance return filed after the deadline for filing the remittance return for that dividend levy, made before the reassessment prescribed in those provisions, or through a reassessment or determination under the provisions of Article 71-32, paragraphs (1) through (3) (where there has been a change in the original disposition by a reassessment that reduces that tax amount to be remitted, or by a ruling or judgment on a request for review of or an action concerning the reassessment, the amount obtained by deducting the amount equivalent to the tax amount of the portion reduced thereby; referred to as the "cumulative remitted tax amount" in the following paragraph); referred to as the "cumulative remitted tax amount after addition" in the following paragraph) 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, to be 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 portion exceeding that amount (where the tax amount to be remitted prescribed in that paragraph is less than the amount equivalent to the portion exceeding that amount, that tax amount to be remitted) by a rate of five percent.

In the case falling under the provisions of paragraph (3), where the cumulative remitted tax amount after addition (where, among the facts that formed the basis for calculating that cumulative remitted tax amount after addition, there is any that is found not to have been included in the basis for calculating the tax amount (including the tax amount equivalent to the amount of refunds) before the remittance return, determination or reassessment prescribed in each item of that paragraph for reasons not attributable to the special collection agent, 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 additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding two paragraphs, to be the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative remitted tax amount after addition into the amounts listed in the following items and multiplying each amount by the rate specified in the relevant item, the total of the amounts calculated by dividing the cumulative remitted tax amount into the amounts listed in those items and multiplying each amount by the rate specified in the relevant item.

The amount equivalent to the portion not exceeding 500,000 yen: 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 the provisions of paragraph (3), when any of the following items applies, the amount of additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, to be the amount obtained by adding, to the amount calculated pursuant to those provisions, the amount calculated by multiplying the tax amount to be remitted prescribed in paragraph (3) by a rate of 10 percent.

Where, in respect of the dividend levy, an additional charge for failure to file (excluding one to which the provisions of the following paragraph apply; the same applies in the following item) or a substantial additional charge (referred to as "additional charge for failure to file, etc." in paragraph (3), item (i) of the following Article) has been collected during the period up to the day five years before, counted from the day preceding the day on which a remittance return was filed after the deadline for filing the remittance return (limited to filing made with foreseeing that a determination would be made by the prefectural governor following an investigation regarding the dividend levy pertaining to that remittance return; the same applies in the following item) or a reassessment or determination under the provisions of Article 71-32, paragraphs (1) through (3) was made;

Where, in respect of a dividend levy for which the special collection obligation arose in the year immediately preceding, and the year before that preceding, the year containing the day on which the special collection obligation arose for the dividend levy pertaining to a remittance return filed after the deadline for filing the remittance return or a reassessment or determination under the provisions of Article 71-32, paragraphs (1) through (3), an additional charge for failure to file or a substantial additional charge (limited to one to which the provisions of paragraph (2) of the following Article apply) (hereinafter in this item and paragraph (3), item (ii) of the following Article referred to as "specified additional charge for failure to file, etc.") has been collected, or where it is found that a determination should be made concerning a specified additional charge for failure to file, etc.

In the case where a remittance return is filed after the deadline for filing the remittance return, if that filing was not made with foreseeing that a determination would be made by the prefectural governor following an investigation regarding the dividend levy pertaining to that remittance return, the amount of additional charge for failure to file prescribed in paragraph (3) pertaining to the tax amount pertaining to that remittance return is, notwithstanding the provisions of that paragraph through paragraph (5), to be the amount equivalent to the amount calculated by multiplying that tax amount by a rate of five percent.

When the prefectural governor has determined the amount of additional charge for understatement to be collected pursuant to the provisions of paragraph (1) or the amount of additional charge for failure to file to be collected pursuant to the provisions of paragraph (3), the prefectural governor must, without delay, notify the special collection agent thereof.

The provisions of paragraph (3) do not apply where a remittance return falling under the provisions of paragraph (7) has been submitted, if the submission was made in a case specified by Cabinet Order as a case in which it is found that there was an intention to submit it by the deadline for filing the remittance return, and was made by the day on which one month has passed from the deadline for filing the remittance return.

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 amount of the tax base, and has filed a remittance return or a written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as "written request for reassessment" in the following paragraph) based on the concealed or disguised facts, 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 (where the provisions of paragraph (2) of that Article apply, the amount after the addition under the provisions of that paragraph), the amount of substantial additional charge equivalent to the amount calculated by multiplying the shortfall resulting from the reassessment that is to form the basis for its calculation by a rate of 35 percent.

In the case falling under the provisions of paragraph (3) 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 amount of the tax base, and, based on the concealed or disguised facts, has not filed the remittance return by the deadline for filing the remittance return, or has filed it after the deadline for filing the remittance return, or has filed a written request for reassessment, the prefectural governor must collect, in place of the amount of additional charge for failure to file prescribed in that paragraph, the amount of substantial additional charge equivalent to the amount calculated by multiplying the tax amount that is to form the basis for its calculation by a rate of 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.

Where, based on the concealed or disguised facts that are to form the basis for calculating the amount of the tax base prescribed in the preceding two paragraphs, an additional charge for failure to file, etc. has been collected in respect of the dividend levy during the period up to the day five years before, counted from the day preceding the day on which a remittance return was filed after the deadline for filing the remittance return or a reassessment or determination under the provisions of Article 71-32, paragraphs (1) through (3) was made;

Where, in respect of a dividend levy for which the special collection obligation arose in the year immediately preceding, and the year before that preceding, the year containing the day on which the special collection obligation arose for the dividend levy pertaining to a remittance return filed after the deadline for filing the remittance return or a reassessment or determination under the provisions of Article 71-32, paragraphs (1) through (3), a specified additional charge for failure to file, etc. has been collected, or where it is found that a determination should be made concerning a specified additional charge for failure to file, etc.

Where the prefectural governor finds that a case falls under the preceding two paragraphs and the circumstances prescribed in paragraph (7) of the preceding Article exist with respect to the filing of the remittance return, the prefectural governor does not collect the amount of substantial additional charge calculated on the basis of the tax amount pertaining to that 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 person fails to remit all or part of the remittance of the dividend levy to be collected and remitted pursuant to the provisions of Article 71-31, paragraph (2), 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 2,000,000 yen, or both.

If the amount not remitted as referred to in the preceding paragraph exceeds 2,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 2,000,000 yen and not exceeding the amount not remitted.

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 paragraph (1) 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 the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of prescription is the same as that for the offense referred to in paragraph (1).

When paragraph (3) applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.