Local Tax Act

If a prefectural governor requests the national government, for the assessment and collection of the transfer levy, to allow inspection or recording of returns that persons liable for consumption tax on transfers, etc. of taxable assets and specified taxable purchases submitted to the national government, or of documents relating to reassessments or determinations made by the national government, the national government is to allow the prefectural governor or an official designated by the governor to inspect or record the relevant documents.

When the national government gives notice of a reassessment or determination concerning consumption tax on a transfer, etc. of taxable assets or a specified taxable purchase, it must notify, without delay, the governor of the prefecture taxing the transfer levy as of the first day of the taxable period for the calculation of the amount of consumption tax relating to that reassessment or determination, of the amount of consideration for the transfer, etc. of taxable assets or specified taxable purchase and the amount of consumption tax relating to that reassessment or determination.

In any of the following cases, the person who committed the violation is punished by imprisonment for not more than 10 years or a fine of not more than 10,000,000 yen, or both.

if the person evades the whole or a part of the transfer levy by deception or other wrongful acts;

if the person, by deception or other wrongful acts, receives a refund under Article 72-88, paragraph (2) or (3), or a refund by a reassessment under Article 72-93, paragraph (1) or (4) (limited to a reassessment based on a request for reassessment).

An attempt to commit the offense under item (ii) of the preceding paragraph (limited to the case where the person has submitted the return prescribed in Article 72-88, paragraph (2) or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (limited to one by which the person seeks to receive a refund by a reassessment under Article 72-93, paragraph (1) or (4) other than a refund relating to the interim payment of the transfer levy)) is punishable.

If the amount of tax evaded as referred to in paragraph (1), item (i), the amount of the refund received as referred to in item (ii) of that paragraph, or the amount of the refund sought to be received in the offense referred to in the preceding paragraph exceeds 10,000,000 yen, then, depending on the circumstances, the amount of the fine under those paragraphs may, notwithstanding those paragraphs, be an amount exceeding 10,000,000 yen that is equal to or less than the amount of tax evaded, the amount of the refund received, or the amount of the refund sought to be received.

In addition to what is prescribed in paragraph (1), item (i), if a person evades the whole or a part of the transfer levy by not filing a return under Article 72-88, paragraph (1) by the deadline for filing, the person who committed the violation is to be punished by imprisonment for not more than five years or a fine of not more than 5,000,000 yen, or both.

If the amount of tax evaded as referred to in the preceding paragraph exceeds 5,000,000 yen, the amount of the fine referred to in that paragraph may, in light of the circumstances, notwithstanding that paragraph, be an amount exceeding 5,000,000 yen and not exceeding the amount of the tax evaded.

If a representative of a corporation, or an agent, employee or other worker of a corporation or a person, commits a violation under paragraph (1), (2) or (4) 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.

Where a fine is imposed on a corporation or a person for a violation under paragraph (1), (2) or (4) pursuant to the preceding paragraph, the period of prescription is governed by the period of prescription for the offenses under those paragraphs.

Where the provisions of paragraph (6) apply to an association or foundation without juridical personality, its representative or administrator represents that association or foundation without juridical personality in its procedural acts, and the provisions of laws and regulations concerning criminal proceedings where a corporation is the defendant or suspect apply mutatis mutandis.

Except for the provisions of Article 72-107, notwithstanding the provisions of Sections 2 through 14 of the preceding Chapter, the assessment and collection of the cargo levy is to be carried out by the national government, in accordance with the rules for the assessment and collection of consumption tax, together with the assessment and collection of consumption tax.

Delinquent tax and penalty tax on the cargo levy (meaning delinquent tax paid and penalty tax imposed on a cargo levy whose assessment and collection are to follow the rules for consumption tax; the same applies in Article 72-106) are treated as the cargo levy for the purposes of the provisions of this Subsection.

A person who is under an obligation to file a return concerning consumption tax under Article 47, paragraph (1) of the Consumption Tax Act must, notwithstanding the provisions of Sections 2 through 14 of the preceding Chapter, submit to the director-general of a customs house, in accordance with the rules for filing for consumption tax and together with the filing for consumption tax, a return stating the amount of consumption tax on the tax base amount set forth in item (ii) of that paragraph that is to be stated in that return, the amount of the cargo levy calculated with it as the tax base, and other necessary matters.

If a person, without justifiable grounds, fails to file a return under the preceding Article by the deadline for filing, 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; provided, however, that the punishment may be remitted in light of the circumstances.

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.

Where the provisions of the preceding paragraph apply to an association or foundation without juridical personality, in addition to the representative or administrator of the association or foundation without juridical personality representing it in its procedural acts, the provisions of laws and regulations concerning criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

A person liable for the cargo levy must, notwithstanding the provisions of Sections 2 through 14 of the preceding Chapter, pay the cargo levy to the national government, in accordance with the rules for payment of consumption tax and together with payment of consumption tax.

When the cargo levy and consumption tax have been paid, payment is deemed to have been made of the cargo levy and consumption tax in amounts obtained by apportioning the amount paid in proportion to the amounts of the cargo levy and consumption tax jointly assessed or declared under Article 72-100 or Article 72-101.

When the cargo levy has been paid, the national government is to, by the last day of the second month following the month in which that payment was made, as provided by Cabinet Order, remit the amount paid as the cargo levy to the prefecture in which the bonded area referred to in Article 72-78, paragraph (1) relating to that cargo levy is located (where paragraph (6) or (7) of that Article applies, the prefecture in which the customs house to which that director-general of a customs house belongs is located).

When the national government refunds an amount equivalent to the whole or part of consumption tax under the provisions of the Act on Collection, etc. of National Consumption Tax Imposed on Imported Goods, it must, in accordance with the rules for refund of consumption tax, refund an amount equivalent to the whole or part of the cargo levy paid together with that consumption tax under paragraph (1) of the preceding Article. In this case, the amount to be refunded is the amount obtained by multiplying the amount equivalent to the refund relating to the consumption tax to be refunded by 22/78.

When there is an overpayment or payment by mistake concerning the cargo levy, the national government must, notwithstanding the provisions of Sections 2 through 14 of the preceding Chapter, refund it in money without delay, in accordance with the rules for refund of overpayments or payments by mistake concerning consumption tax.

The refund of a refund or of an overpayment or payment by mistake concerning the cargo levy under the preceding two paragraphs (including interest on refund to be added to them; hereinafter in this paragraph, the following Article and Article 72-107 referred to as "refunds, etc.") must be made together with the refund of refunds, etc. concerning consumption tax.

When the national government has refunded refunds, etc. concerning the cargo levy under the preceding Article, it is to deduct an amount equivalent to those refunds, etc. from the total amount paid as the cargo levy in the month that includes the day on which those refunds, etc. were refunded, which is to be remitted under Article 72-103, paragraph (3) to the prefecture prescribed in that paragraph relating to that cargo levy.

Where refunds, etc. an amount equivalent to which has been deducted from the total amount paid as the cargo levy under the preceding paragraph are returned, or where any other grounds specified by Cabinet Order arise, an amount equivalent to the amount returned or any other amount specified by Cabinet Order is to be added to the total amount paid as the cargo levy in the month that includes the day on which that return was made or those grounds specified by Cabinet Order arose, which is to be remitted to that prefecture under Article 72-103, paragraph (3).

If the amount equivalent to the refunds, etc. to be deducted under paragraph (1) exceeds the total amount paid as the cargo levy in the month that includes the day on which those refunds, etc. were refunded (where there is an amount to be added under the preceding paragraph in that month, the amount including that addition), paragraph (1) applies as though refunds, etc. equivalent to the excess amount had been refunded in the following month.

The calculation of delinquent tax and penalty tax concerning the cargo levy, delinquent tax and penalty tax concerning consumption tax, and the amounts relating to exemption from those delinquent taxes (hereinafter in this Article referred to as "delinquent tax, etc.") is to be made on the combined amount of the cargo levy and consumption tax, and the amount obtained by apportioning the delinquent tax, etc. so calculated in proportion to the amounts of the cargo levy and consumption tax that formed the basis of the calculation is the amount of delinquent tax, etc. concerning the cargo levy or consumption tax respectively.

The calculation of interest on refund concerning the cargo levy and consumption tax is to be made on the combined amount of refunds or overpayments or payments by mistake concerning the cargo levy and consumption tax, and the amount obtained by apportioning the interest on refund so calculated in proportion to the amounts of the refunds or overpayments or payments by mistake concerning the cargo levy and consumption tax that formed the basis of the calculation is the amount of interest on refund concerning the cargo levy or consumption tax respectively.

The calculation of fractions in calculating delinquent tax, etc. and interest on refund concerning the cargo levy and consumption tax under the preceding two paragraphs is to be made by treating the cargo levy and consumption tax as one tax.

The provisions of Article 57 of the Act on General Rules for National Taxes do not apply to refunds, etc. that fall under any of the following items:

refunds, etc. in a case where there are national taxes that have become payable by a person who is to receive refunds, etc. concerning the cargo levy and consumption tax that were jointly reassessed or determined under Article 72-100, jointly declared under Article 72-101, or jointly paid under Article 72-103;

refunds, etc. concerning national taxes (excluding those falling under the preceding item) in a case where there are cargo levy and consumption tax that were jointly assessed or declared under Article 72-100 or Article 72-101 and that have become payable by the person who is to receive those refunds, etc. (hereinafter in paragraphs (2) and (3) referred to as "unpaid cargo levy, etc.").

In the case prescribed in item (i) of the preceding paragraph, the person who is to receive the refunds, etc. referred to in that item is deemed to have entrusted the director-general of the customs house responsible for the refund with paying the unpaid cargo levy, etc. or the other national taxes that have become payable with those refunds, etc. (limited to an amount equivalent to the amount relating to the unpaid cargo levy, etc. or the other national taxes that have become payable).

In the case prescribed in paragraph (1), item (ii), the person who is to receive the refunds, etc. referred to in that item is deemed to have entrusted the director-general of the customs house responsible for the refund with paying the unpaid cargo levy, etc. with those refunds, etc. (limited to an amount equivalent to the amount relating to the unpaid cargo levy, etc.).

Where the preceding two paragraphs apply, an amount equivalent to the entrusted payment is deemed to have been refunded and paid at the time specified by Cabinet Order as the time at which it has become appropriate to make the entrustment under those provisions.

Where paragraph (2) or (3) applies, the director-general of the customs house that made the payment under those provisions must, without delay, notify the person deemed to have made the entrustment under those provisions to that effect.