Local Tax Act

When a municipality intends to establish or modify a municipal non-statutory ordinary tax (excluding a reduction of the tax rate of a municipal non-statutory ordinary tax, its abolition, or other modification specified by Cabinet Order; the same applies in the following paragraph and paragraph (2) of the following Article), it must consult with the Minister for Internal Affairs and Communications in advance and obtain the Minister's consent.

Where a municipality has a person liable for a municipal non-statutory ordinary tax of that municipality (including a person who is to become a person liable for tax; the same applies hereinafter in this paragraph) who is specified by Order of the Ministry of Internal Affairs and Communications as a person for whom the total of the tax bases of that municipal non-statutory ordinary tax to be imposed is expected to continuously exceed one-tenth of the total of the tax bases of that municipal non-statutory ordinary tax (referred to as a "specified person liable for tax" in this paragraph), and intends to enact a Municipal Ordinance establishing or modifying that municipal non-statutory ordinary tax, the municipality is to hear the opinion of that specified person liable for tax in the municipal assembly of that municipality.

Upon receiving a request for consultation under the preceding Article, the Minister for Internal Affairs and Communications must notify the Minister of Finance to that effect.

If the Minister of Finance has received the notification under the preceding paragraph and has an objection to the establishment or modification of the municipal non-statutory ordinary tax relating to the request for consultation, the Minister may so state to the Minister for Internal Affairs and Communications.

The Minister for Internal Affairs and Communications must hear the opinion of the Local Finance Council concerning the consent under Article 669, paragraph (1).

Upon receiving a request for consultation under Article 669, paragraph (1), the Minister for Internal Affairs and Communications must give consent, except where the Minister finds that any of the following grounds exists with respect to the municipal non-statutory ordinary tax relating to that request for consultation.

The tax has the same tax base as a national tax or another local tax, and would make the burden on residents markedly excessive.

It would seriously impede the distribution of goods between local governments.

Apart from what is listed in the preceding two items, it is inappropriate in light of the national economic policy.

A municipality may not impose a municipal non-statutory ordinary tax on the following.

Land, houses, and articles located outside the municipality, and income arising from them

Business conducted at offices and places of business located outside the municipality, and income arising from them

Benefits received on account of injury or illness arising from official duties or occupational causes, as specified by Cabinet Order

The collection of a municipal non-statutory ordinary tax must be carried out, for convenience of collection and in accordance with the Municipal Ordinance of the municipality, by the method of ordinary collection, filing and payment, special collection or collection by stamps.

Where necessary for an examination concerning the assessment and collection of a municipal non-statutory ordinary tax, a municipal tax collection official may question the following persons, and may inspect the books and documents relating to the business of the persons listed in items (i) to (iii) (including, where an electronic or magnetic record (meaning a record made in electronic form, magnetic form or any other form that cannot be perceived by human senses and that is used for information processing by a computer) is made or kept in lieu of making or keeping them, that electronic or magnetic record; the same applies in Article 675, paragraph (1), items (i) and (ii)) and other articles, or request the presentation or submission of those articles (including copies of them).

a person liable for tax or a person found to have tax liability;

a special collection agent;

a person found to have an obligation to provide money or goods to a person listed in the preceding two items;

a person other than those listed in the preceding three items who is found to be directly related to the assessment and collection of that municipal non-statutory ordinary tax.

A successor corporation in a company split (meaning a corporation that has received a transfer of assets and liabilities from a splitting corporation in a split; the same applies hereinafter in this paragraph) relating to a split in which a person listed in item (i) or (ii) of the preceding paragraph is the splitting corporation (meaning a corporation that has transferred its assets and liabilities in a split; the same applies hereinafter in this paragraph), and a splitting corporation relating to a split in which a person listed in item (i) or (ii) of the preceding paragraph is the successor corporation in a company split, are deemed to be included in the persons found to have an obligation to provide money or goods as prescribed in item (iii) of that paragraph.

In the case referred to in paragraph (1), the tax collection official in question must carry an identification card certifying the official's status and present it when requested by a person concerned.

A municipal tax collection official may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

Notwithstanding paragraph (1), an examination concerning a delinquent tax collection procedure relating to a municipal non-statutory ordinary tax is governed by Article 695, paragraph (6).

The authority of a municipal tax collection official under paragraph (1) or (4) must not be construed as having been granted for the purpose of a criminal investigation.

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 the person refuses, obstructs or evades an inspection of books, documents or other articles under the provisions of the preceding Article;

if the person, without justifiable grounds, fails to comply with a request to present or submit articles under the provisions of paragraph (1) of the preceding Article, or presents or submits books, documents or other articles (including copies thereof) containing false entries or records;

When a person fails to answer questions put by a tax collection official under the preceding Article, or gives a false answer.

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.

A person liable for a municipal non-statutory ordinary tax (excluding a person liable for a municipal non-statutory ordinary tax subject to special collection; the same applies in the following paragraph and Article 678) or a special collection agent who has no domicile, residence, office or place of business (referred to as "address, etc." in this paragraph) within the municipality in which the person bears an obligation to pay or an obligation to remit must, in order to have all matters relating to payment or remittance handled, either designate a tax agent from among persons having an address, etc. within an area specified by the Municipal Ordinance of that municipality and report this to the mayor of the municipality, or apply to the mayor of the municipality for, and obtain, approval to designate as a tax agent a person, among those having an address, etc. outside that area, who is in a convenient position to handle those matters. The same applies where the tax agent is changed or is to be changed.

Notwithstanding the preceding paragraph, a person liable for tax or special collection agent concerned is not required to designate a tax agent if the person has applied to the mayor of the municipality for, and obtained, a certification that there is no hindrance to securing the collection of the municipal non-statutory ordinary tax relating to that person liable for tax or special collection agent.

If a person makes a false report concerning a tax agent to be reported under the provisions of paragraph (1) of the preceding Article, or obtains the approval under that paragraph or the certification under paragraph (2) of that Article by deceit or other wrongful means, the person who committed the violation is to be punished by a fine of not more than 300,000 yen.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or person, has committed a violation under the preceding paragraph in connection with the business or property of that corporation or person, in addition to punishing the offender, the penalty prescribed in that paragraph is to be imposed on that corporation or person.

A municipality may provide, in its Municipal Ordinance, that a non-penal fine of not more than 100,000 yen is imposed on a person liable for a municipal non-statutory ordinary tax or a special collection agent who has not obtained the certification under Article 676, paragraph (2) and has not obtained the approval under paragraph (1) of that Article, if that person, without justifiable grounds, fails to make the report concerning the tax agent that is to be reported under that paragraph.

A tax notice that is to be delivered to a taxpayer when a municipal non-statutory ordinary tax is to be collected by ordinary collection must be delivered to the taxpayer no later than 10 days before its due date for payment.

A person liable for a municipal non-statutory ordinary tax must, in accordance with the Municipal Ordinance of the municipality, file a return or make a report concerning the matters specified in that Ordinance in connection with the assessment and collection of that municipal non-statutory ordinary tax.