Local Tax Act

If a reassessment under Article 321-11, paragraph (1) or (3) or a determination under paragraph (2) of that Article has been made and there is a tax deficiency (meaning the tax deficiency resulting from a reassessment or the amount of tax resulting from a determination; the same applies in the following paragraph), the municipal tax collection official must collect it, with the day on which one month has elapsed from the day on which notice under paragraph (4) of that Article was given as the due date for payment.

In the case of the preceding paragraph, an amount of delinquency charge equivalent to the amount calculated by multiplying the tax deficiency by a rate of 14.6 percent per annum (7.3 percent per annum for the period until the due date for payment under the preceding paragraph or the period until the day on which one month elapses from the day following that due date for payment), according to the number of days in the period from the day following the due date for payment under Article 321-8, paragraph (1), (2) or (31) (if there is a tax deficiency on the corporation tax levy pertaining to filing and payment under paragraph (35) of that Article, the due date for payment under paragraph (1) or (2) of that Article, and if there has been an extension of the due date for payment, the extended due date for payment; the same applies in paragraph (4), item (i)) until the date of payment, must be added to it and collected.

In the case of the preceding paragraph, if the day on which notice of the reassessment under Article 321-11, paragraph (1) or (3) was given falls after the day on which one year elapses from the day following the day on which the return prescribed in Article 321-8, paragraph (1), (2) or (31) was filed (or, if that return was filed before its deadline for filing, that deadline for filing), the period from the day following the day on which that one year elapses until the day on which that notice was given (in the case of a reassessment arising from the filing of an amended corporation tax return or the making of a reassessment or determination of corporation tax, the day on which that amended return was filed or the day on which a national tax office gave notice of the reassessment or determination) is to be deducted from the period forming the basis for calculating the delinquency charge, except where municipal inhabitant tax was evaded by deception or other wrongful acts.

In the case of paragraph (2), if a reassessment increasing the amount of tax to be paid (including a reassessment specified by Cabinet Order as similar thereto; hereinafter in this paragraph referred to as a "reassessment increasing the tax") has been made (limited to the case where, with respect to the municipal inhabitant tax pertaining to that reassessment increasing the tax, the return prescribed in Article 321-8, paragraph (1), (2) or (31) (hereinafter in this paragraph referred to as the "original return") has been filed, and that reassessment increasing the tax was made after a reassessment reducing the amount of tax to be paid by the filing of that original return (including a reassessment specified by Cabinet Order as similar thereto; hereinafter in this paragraph referred to as a "reassessment reducing the tax") was made), then, with respect to the amount of tax to be paid by that reassessment increasing the tax (limited to the amount of tax specified by Cabinet Order as the part up to the amount of tax pertaining to that original return (including the amount of tax equivalent to the amount of a refund)), notwithstanding the preceding paragraph, the periods set forth in the following items (limited to the period set forth in item (i), in the case of municipal inhabitant tax to be paid by that reassessment increasing the tax made with respect to a corporation that evaded municipal inhabitant tax by deception or other wrongful acts and other municipal inhabitant tax specified by Cabinet Order) are to be deducted from the period forming the basis for calculating the delinquency charge.

the period from the day following the day on which the tax to be paid by the filing of that original return was paid (or, if that day is before the due date for payment of the municipal inhabitant tax pertaining to that return, that due date for payment) until the day on which notice of that reassessment reducing the tax was given;

the period from the day following the day on which notice of that reassessment reducing the tax was given (or, if that reassessment reducing the tax is based on a request for reassessment (excluding one resulting from a reassessment of corporation tax) or results from a reassessment of corporation tax (limited to one based on a request for reassessment of corporation tax), the day on which one year elapses counting from the day following the day on which notice of that reassessment reducing the tax was given) until the day on which notice of that reassessment increasing the tax was given (in the case of a reassessment arising from the filing of an amended corporation tax return or the making of a reassessment or determination of corporation tax, the day on which that amended return was filed or the day on which a national tax office gave notice of the reassessment or determination).

If the mayor of the municipality finds that there are unavoidable reasons for the taxpayer having received a reassessment under Article 321-11, paragraph (1) or (3) or a determination under paragraph (2) of that Article, the mayor may reduce or exempt the amount of delinquency charge under paragraph (2).

If a corporation having offices or places of business in two or more municipalities (excluding a corporation filing an interim return without provisional accounts and a corporation that is to submit a return under Article 321-8, paragraph (2)) files and pays corporate municipal inhabitant tax under that Article (excluding the latter part of paragraph (1) of that Article), it must apportion the corporation tax amount of that corporation among the relevant municipalities, calculate the corporation tax levy amount for each relevant municipality using the apportioned amount as the tax base, and file and pay the amount obtained by adding the per capita levy amount to it. In this case, a detailed statement on the apportionment of the tax base, specified by Order of the Ministry of Internal Affairs and Communications, must be attached to the return to be submitted to the mayor of the municipality in which the principal office or place of business is located.

The apportionment under the preceding paragraph is to be made, for each relevant municipality, with respect to the offices or places of business that the corporation has during the computation period for the tax base of the corporation tax amount, by apportioning the corporation tax amount of that corporation in proportion to the number of workers as of the last day of that computation period.

In the case referred to in the preceding paragraph, for the offices or places of business set out in the following items, the number set out in the relevant item (if a fraction of less than one person arises in that number, it is deemed to be one person) is deemed to be the number of workers prescribed in that paragraph.

an office or place of business newly established partway through the computation period for the tax base of the corporation tax amount: the number obtained by multiplying the number of workers as of the last day of that computation period by the ratio of the number of months from the day on which that office or place of business was newly established to the last day of that computation period to the number of months in that computation period;

an office or place of business abolished partway through the computation period for the tax base of the corporation tax amount: the number obtained by multiplying the number of workers as of the last day of the month immediately preceding the month containing the day of that abolition by the ratio of the number of months during which the abolished office or place of business was located within that computation period to the number of months in that computation period;

an office or place of business specified by Cabinet Order as one in which the number of workers fluctuates significantly throughout the computation period for the tax base of the corporation tax amount: the number obtained by dividing the sum of the numbers of workers as of the last day of each month belonging to that computation period by the number of months in that computation period.

The number of months set forth in the preceding paragraph is calculated according to the calendar; a division of less than one month is counted as one month.

In addition to what is provided for in the preceding paragraphs, matters necessary for the division of the corporation tax amount that forms the tax base of the corporation tax levy are specified by Order of the Ministry of Internal Affairs and Communications.

If a corporation referred to in paragraph (1) of the preceding Article has filed a return under Article 321-8, and the number of workers serving as the basis for apportioning the corporation tax amount apportioned to each relevant municipality, as stated in that return, differs from the facts (including the case where the corporation tax amount to serve as the tax base was not apportioned), the mayor of the municipality of the location of the principal office or place of business of that corporation is to amend it.

If the corporation referred to in the preceding paragraph has not filed a return under Article 321-8 (excluding the case to which the second sentence of paragraph (1) of that Article applies), the mayor of the municipality referred to in that paragraph is to determine the number of workers serving as the basis for apportioning the corporation tax amount to be apportioned to each relevant municipality.

If the mayor of the municipality referred to in paragraph (1) has amended the number of workers pursuant to that paragraph or this paragraph, or determined it pursuant to the preceding paragraph, and discovers that the number of workers pertaining to that amendment or determination differs from the facts, the mayor is to amend it.

In the case referred to in the preceding Article or the preceding three paragraphs, the mayor of a relevant municipality who finds that the number of workers serving as the basis for apportioning the corporation tax amount apportioned to each relevant municipality differs from the facts, or the mayor of a relevant municipality who finds that the corporation tax amount to serve as the tax base has not been apportioned, must request the mayor of the municipality referred to in paragraph (1) to amend it.

If the mayor of the municipality referred to in paragraph (1) has received a request under the preceding paragraph, the mayor must, within 30 days from the day on which the request was received, amend the number of workers serving as the basis for apportioning the corporation tax amount apportioned to each relevant municipality, or the corporation tax amount that was not apportioned, pursuant to the preceding Article or paragraph (1), (2) or (3), or make a determination to the effect that there is no need to amend it.

If the mayor of the municipality referred to in paragraph (1) has amended or determined the number of workers serving as the basis for apportioning the corporation tax amount pursuant to paragraph (1), (2), (3) or the preceding paragraph, or has made a determination pursuant to the preceding paragraph to the effect that there is no need to amend that number of workers, the mayor must, without delay, notify the mayors of the relevant municipalities and the taxpayer concerned to that effect.

A mayor of a relevant municipality who objects to the disposition of the mayor of the municipality referred to in paragraph (1) of the preceding Article pertaining to the notice under paragraph (6) of that Article may apply to the prefectural governor (or, where the relevant municipalities belong to two or more prefectures, the Minister for Internal Affairs and Communications) for a determination.

If a prefectural governor or the Minister for Internal Affairs and Communications has received an application under the preceding paragraph, the governor or Minister must make the determination within 30 days from the day on which the application was received.

If a prefectural governor or the Minister for Internal Affairs and Communications has made the determination under the preceding paragraph, the governor or Minister must, without delay, notify the mayors of the relevant municipalities and the taxpayer concerned to that effect.

A mayor of a municipality who objects to the determination of the prefectural governor under paragraph (2) may, within 30 days from the day on which the notice under the preceding paragraph was received, apply to the Minister for Internal Affairs and Communications for a ruling.

If the notice under paragraph (3) was sent by post or correspondence delivery and the day on which it arrived is unclear, the day on which four days have elapsed from the day on which it was sent is deemed to be the day on which the notice under that paragraph was received. In this case, if the mayor of the municipality can prove the day of arrival, the day so proved is deemed to be the day on which the notice was received.

Where documents relating to an application under paragraph (4) are sent by mail or correspondence delivery, the number of days required for sending is not counted in the period referred to in that paragraph.

Upon receiving an application under paragraph (4), the Minister for Internal Affairs and Communications must make the ruling within 60 days from that day.

If the Minister for Internal Affairs and Communications has made the ruling under the preceding paragraph, the Minister must, without delay, notify the mayors of the relevant municipalities and the taxpayer concerned to that effect.

When the Minister for Internal Affairs and Communications intends to make the decision referred to in paragraph (2) or the ruling referred to in paragraph (7), the Minister must hear the opinion of the Local Finance Council.

A mayor of a municipality who finds that the determination of the Minister for Internal Affairs and Communications under paragraph (2) or the ruling of the Minister under paragraph (7) is unlawful may bring an action in court within 30 days from the day on which the notice of the determination or ruling was received.

The mayor of the municipality may reduce or exempt municipal inhabitant tax, in accordance with the provisions of the Municipal Ordinance of the municipality concerned, only for a person who is found to need a reduction or exemption of municipal inhabitant tax in the case of a natural disaster or other special circumstances, a person who receives public or private assistance for subsistence owing to poverty, and any other person with special circumstances; provided, however, that this does not apply to a special collection agent.