Local Tax Act

When the head of a local government has granted a deferral of collection, the head may not, during the period of that deferral of collection, newly make a demand for payment or carry out a delinquent tax collection procedure (excluding a request for share distribution) in respect of the local government levies subject to that deferral of collection.

When the head of a local government has granted a deferral of collection and there is property seized in respect of the local government levies subject to that deferral of collection, the head may release the seizure upon application by the person who received that deferral of collection.

When the head of a local government has granted a deferral of collection and the property seized in respect of the local government levies subject to that deferral of collection includes property that produces fruits, or securities, claims or intangible property rights, etc. (meaning intangible property rights, etc. prescribed in Article 72, paragraph (1) of the National Tax Collection Act; the same applies in Article 16-4, paragraph (10)), the head may, notwithstanding paragraph (1), carry out a delinquent tax collection procedure on the fruits acquired or on property other than money received in performance from a third-party debtor, etc., and apply the proceeds of realization, etc. relating to that property (meaning proceeds of realization, etc. prescribed in Article 129, paragraph (1) of that Act; the same applies in Article 19-4, item (iv)) to the local government levies subject to that deferral of collection.

In the case referred to in the preceding paragraph, if the property received in performance from the third-party debtor, etc. referred to in that paragraph includes money, the head of a local government may, notwithstanding paragraph (1), apply that money to the local government levies subject to that deferral of collection.

If a person who has received a deferral of collection falls under any of the following items, the head of a local government may revoke that deferral of collection and collect the local government levies subject to that deferral of collection in a lump sum.

Where there is a fact falling under any of the items of Article 13-2, paragraph (1) and it is found that the person cannot pay in full the local government levies subject to that deferral of collection within the period for which the deferral of collection was received;

Where the person fails to pay or remit, by the due date for payment, local government levies that were permitted to be paid or remitted in installments under Article 15, paragraph (3) or (5) (excluding where the head of a local government finds that there is an unavoidable reason);

Where the person fails to comply with a request made by the head of a local government under Article 16, paragraph (3) regarding the security provided for the local government levies subject to that deferral of collection;

Where the person has become delinquent in local government levies of that local government other than the local government levies subject to that deferral of collection (including where a default has newly occurred on an obligation relating to a claim of that local government specified by the Prefectural or Municipal Ordinance of that local government (meaning a claim prescribed in Article 240, paragraph (1) of the Local Autonomy Act; the same applies in Article 15-6, paragraph (2)), and excluding where the head of a local government finds that there is an unavoidable reason);

Where it becomes apparent that the application for that deferral of collection or extension of the period of deferral of collection was made by deceit or other wrongful means, and that the deferral of collection was granted or the extension of the period of deferral of collection was made on the basis of that application;

Where, owing to a change in circumstances such as the state of the property of the person who received the deferral of collection, it is found inappropriate to continue that deferral of collection;

Where the case falls under a case specified by the Prefectural or Municipal Ordinance of that local government as similar to those listed in the preceding items.

When revoking a deferral of collection under the preceding paragraph, the head of a local government must in advance hear the explanation of the person who received that deferral of collection, except where there is a fact falling under any of the items of Article 13-2, paragraph (1); provided, however, that this does not apply if that person does not give the explanation without justifiable grounds.

When the head of a local government has revoked a deferral of collection under paragraph (1), the head must notify the person subject to the revocation of that deferral of collection of that fact.

In the cases set forth in the following items, if the total amount of prefectural inhabitant tax and enterprise tax relating to the return, amended return, or reassessment under each of those items, or the amount of municipal inhabitant tax relating to the return or reassessment under item (i) or (ii), is less than the amount specified by Cabinet Order, the head of a local government is to defer the collection of those tax amounts, except where prefectural inhabitant tax, municipal inhabitant tax, or enterprise tax has been evaded by deception or other wrongful acts and in other cases specified by Cabinet Order, until the first time limit for payment of prefectural inhabitant tax, municipal inhabitant tax, or enterprise tax (excluding tax whose collection is deferred under this Article) that arrives after the day on which the return or amended return was filed or after the due date for payment relating to the reassessment.

where a corporation that has an office or place of business in two or more prefectures or municipalities files a return under Article 53, paragraph (34) or Article 321-8, paragraph (34);

where a corporation referred to in the preceding item receives a reassessment under Article 55, paragraph (1) or (3) or Article 321-11, paragraph (1) or (3) (limited to a reassessment based on a modification under Article 58 or Article 321-14);

where a corporation that conducts business by establishing an office or place of business in two or more prefectures files an amended return under Article 72-31, paragraph (2) or (3).

A corporation that intends to be subject to the provisions of the preceding paragraph must submit a written notification specified by Order of the Ministry of Internal Affairs and Communications to the head of the local government where its office or place of business is located, by the due date for payment of the tax amount relating to the return, amended return, or reassessment referred to in that paragraph.

Where a person delinquent in payment is found to fall under any of the following items, and that person is found to have a sincere intention to pay or remit the local government levies relating to that local government, the head of a local government may suspend the realization of property through delinquent tax collection procedures for the local government levies that the person is to pay or remit (excluding those for which the person has received a deferral of collection or a suspension of realization under Article 15-6, paragraph (1) (hereinafter in this Chapter referred to as "suspension of realization upon application")); provided, however, that the period of that suspension must not exceed one year.

when immediate realization of the property is likely to make it difficult for the person to continue the business or maintain the livelihood;

when suspending the realization of the property is advantageous, compared with realizing it immediately, for the collection of the local government levies in arrears and of other local government levies that are to become payable or remittable in the near future.

When implementing ex officio suspension of realization, if the head of a local government finds it necessary, the head may request the person delinquent in payment to submit an inventory of property, documents relating to the provision of security, and other documents specified by the Prefectural or Municipal Ordinance of that local government.

When extending, under Article 15, paragraph (4) as applied mutatis mutandis with the replacement of terms under paragraph (2) of the preceding Article, the period of ex officio suspension of realization, if the head of a local government finds it necessary, the head may request the person who received that ex officio suspension of realization to submit an inventory of property, documents relating to the provision of security, and other documents specified by the Prefectural or Municipal Ordinance of that local government.

The provisions of Article 15-2-2, paragraph (1) apply mutatis mutandis to ex officio suspension of realization.

When implementing ex officio suspension of realization, if the head of a local government finds it necessary, the head may suspend or release the seizure of property for which seizure is likely to make it difficult for the person delinquent in payment to continue the business or maintain the livelihood.