Local Tax Act

Where necessary for an examination concerning the assessment and collection of business office tax, a tax collection official of a designated city, etc. may question the following persons, or inspect the books and documents of the person set forth in item (i) or (ii) (including, where an electronic or magnetic record (meaning a record made in an electronic form, magnetic form or any other form that cannot be perceived by human senses, which is used for information processing by a computer) has been created or kept in lieu of their creation or keeping, that electronic or magnetic record; the same applies in items (i) and (ii) of paragraph (1) of the following Article) or other articles, or demand the presentation or submission of such articles (including copies thereof):

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

a person found to be obligated to provide money or articles to the person set forth in the preceding item, or a person found to have a right to receive money or articles from the person set forth in that item; or

a person other than the persons set forth in the preceding two items who is found to have a direct relationship to the assessment and collection of the business office tax concerned.

In the case of a company split in which the person set forth in item (i) of the preceding paragraph is the splitting corporation (meaning a corporation that has transferred its assets and liabilities by a company split; the same applies hereinafter in this paragraph), the successor corporation in a company split (meaning a corporation that has received a transfer of assets and liabilities from the splitting corporation by the split; the same applies hereinafter in this paragraph) is included among the persons found to have a right to receive the articles prescribed in item (ii) of the preceding paragraph, and in the case of a company split in which the person set forth in item (i) of that paragraph is the successor corporation in a company split, the splitting corporation is included among the persons found to be obligated to provide the articles prescribed in item (ii) 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 tax collection official of a designated city, etc. may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

Notwithstanding the provisions of paragraph (1), an examination concerning delinquent tax collection procedures for business office tax is governed by Article 701-65, paragraph (6).

The authority of a tax collection official of a designated city, etc. under the provisions of paragraph (1) or (4) must not be construed as having been granted for 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 juridical person (including the administrator of an association or foundation without juridical personality; the same applies in Article 701-38, paragraph (2), Article 701-53, paragraph (2), Article 701-56, paragraph (5), Article 701-66, paragraph (4), Article 701-66-2, paragraph (2) and Article 701-67, paragraph (2)) or an agent, employee or other worker of a juridical person or of a person commits a violation referred to in the preceding paragraph in connection with the business or property of that juridical person or person, in addition to punishing the offender, the fine prescribed in the preceding paragraph is imposed on that juridical person or person.

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 concerning criminal proceedings in the case where a juridical person is the defendant or suspect apply mutatis mutandis.

A person liable for business office tax, if the person has no domicile, residence or office or place of business (hereinafter in this paragraph referred to as "address, etc.") within the area of the designated city, etc. to which the person's tax liability relates, must, in order to have all matters relating to tax payment handled, either designate a tax agent from among persons having a address, etc. within the area prescribed by the Municipal Ordinance of that designated city, etc. and report the designation to the head of the designated city, etc., or apply to the head of the designated city, etc. for approval of the appointment, as tax agent, of a person having a address, etc. outside that area who is in a convenient position to handle those matters, and obtain that approval. The same applies where the person changes the tax agent or intends to do so.

Notwithstanding the preceding paragraph, a person liable for tax in question is not required to designate a tax agent if the person has applied to the head of the designated city, etc. for, and received, a certification that there is no impediment to securing the collection of the business office tax relating to that person liable for tax.

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.

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 designated city, etc. may establish, by its Municipal Ordinance, a provision imposing a non-penal fine of not more than 100,000 yen on a person liable for business office tax who has not received the certification under Article 701-37, paragraph (2) and has not received the approval under paragraph (1) of that Article, if the person fails, without justifiable grounds, to report the tax agent who is to be reported under that paragraph.

The tax base of the business office tax is, for the asset levy, the floor area of places of business as of the last day of the computation period of the tax base (where the number of months in the computation period of the tax base is less than 12, the area obtained by dividing that floor area of places of business by 12 and multiplying the result by the number of months in that computation period of the tax base; the same applies in the following paragraph), and, for the worker levy, the total salaries of workers paid during the computation period of the tax base.

The tax base of the asset levy imposed on a business conducted at an office or place of business listed in the following items is, notwithstanding the preceding paragraph, the area specified in the relevant item.

An office or place of business newly established in the middle of the computation period of the tax base (excluding an office or place of business set forth in item (iii)): the area obtained by multiplying the floor area of places of business as of the last day of that computation period of the tax base by the ratio of the number of months from the month following the month containing the date of that new establishment to the month containing the last day of that computation period of the tax base, to the number of months in that computation period of the tax base

An office or place of business closed in the middle of the computation period of the tax base (excluding an office or place of business set forth in the following item): the area obtained by multiplying the floor area of places of business as of the date of that closure by the ratio of the number of months from the month containing the first day of that computation period of the tax base to the month containing the date of that closure, to the number of months in that computation period of the tax base

An office or place of business newly established in the middle of the computation period of the tax base and closed in the middle of that computation period of the tax base: the area obtained by multiplying the floor area of places of business as of the date of that closure by the ratio of the number of months from the month following the month containing the date of that new establishment to the month containing the date of that closure, to the number of months in that computation period of the tax base

The number of months in the computation period of the tax base under the preceding two paragraphs is calculated according to the calendar, and a fraction of less than one month is treated as one month.