Local Tax Act

In the case where a remittance return was submitted by the deadline for filing it (including the case where it was submitted after the deadline for filing a remittance return and the proviso to the following paragraph or paragraph (8) applies; the same applies hereinafter in this paragraph), if a reassessment under Article 328-9, paragraph (1) or (3) has been made, the mayor of the municipality must, except where the mayor finds that there were justifiable grounds for an error in the amount of the tax base or the tax amount pertaining to the filing of the remittance return before that reassessment, collect an additional charge for understatement equivalent to the amount calculated by multiplying the shortfall amount resulting from that reassessment (hereinafter in this paragraph referred to as the "covered shortfall") by a rate of 10 percent (if the covered shortfall (if, before that reassessment, a reassessment was made with respect to the separately taxed income levy pertaining to that reassessment, the amount obtained by adding the total of the shortfall amounts resulting from that earlier reassessment (where it was found that there were justifiable grounds for an error in the amount of the tax base or the tax amount pertaining to the filing of the remittance return before that reassessment, the amount after deducting the shortfall amount resulting from that earlier reassessment, and where a reassessment reducing the amount to be remitted for that separately taxed income levy was made, or the original disposition was altered by a ruling or judgment on a request for review or action pertaining to a reassessment, the amount after deducting the amount equivalent to the portion thus reduced)) exceeds the greater of the amount equivalent to the tax amount pertaining to the remittance return in the case where it was submitted by the deadline for filing and 500,000 yen, the amount obtained by adding the amount calculated by multiplying the amount equivalent to the excess portion (or, if the covered shortfall is less than the amount equivalent to the excess portion, the covered shortfall) by a rate of 5 percent).

In the case falling under any of the following items, the mayor of the municipality must collect the amount of additional charge for failure to file equivalent to the amount calculated by multiplying the tax amount to be remitted by the remittance return, determination or reassessment prescribed in that item by a rate of 15 percent; provided, however, that this does not apply where it is found that there were justifiable grounds for the remittance return not having been submitted by the deadline for filing it.

where a remittance return is submitted after the deadline for filing it, or a determination under Article 328-9, paragraph (2) has been made;

where, after a remittance return has been submitted after the deadline for filing it, a reassessment under Article 328-9, paragraph (1) or (3) has been made;

where, after a determination under Article 328-9, paragraph (2) has been made, a reassessment under Article 328-9, paragraph (3) has been made.

In the case falling under the preceding paragraph (excluding the case where the proviso to that paragraph or paragraph (8) applies; the same applies in the following paragraph and paragraph (5)), where the tax amount to be remitted prescribed in the preceding paragraph (in the case falling under item (ii) or (iii) of that paragraph, the amount obtained by adding the total of the tax amounts to be remitted by the remittance return filed after the deadline for filing the remittance return pertaining to that separately taxed income levy, made before the reassessment prescribed in those items, or by the reassessment or determination under Article 328-9, paragraphs (1) to (3) (where a reassessment reducing the tax amount to be remitted was made, or the original disposition was altered by a ruling or judgment on a request for review or action pertaining to a reassessment, the amount after deducting the tax amount equivalent to the portion thus reduced; referred to as the "cumulative remitted tax amount" in the following paragraph); referred to as the "cumulative remitted tax amount after addition" in the following paragraph) exceeds 500,000 yen, the amount of additional charge for failure to file prescribed in the preceding paragraph is, notwithstanding that paragraph, to be the amount obtained by adding, to the amount calculated pursuant to that paragraph, the amount calculated by multiplying the amount equivalent to the excess portion (or, if the tax amount to be remitted prescribed in that paragraph is less than the amount equivalent to the excess portion, that tax amount to be remitted) by a rate of 5 percent.

In the case falling under paragraph (2), where the cumulative remitted tax amount after addition (where, among the facts that formed the basis for calculating that cumulative remitted tax amount after addition, there is any that is found not to have been included in the basis for calculating the tax amount before the remittance return, determination or reassessment prescribed in each item of paragraph (2) for reasons not attributable to the special collection agent, the tax amount after deducting the amount calculated, as provided by Cabinet Order, as the tax amount based on that fact) exceeds 3,000,000 yen, the amount of additional charge for failure to file prescribed in paragraph (2) is, notwithstanding the preceding two paragraphs, to be the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative remitted tax amount after addition into the amounts listed in the following items and multiplying each amount by the rate specified in the relevant item, the total of the amounts calculated by dividing the cumulative remitted tax amount into the amounts listed in those items and multiplying each amount by the rate specified in the relevant item.

The amount equivalent to the portion not exceeding 500,000 yen: a rate of 15 percent;

The amount equivalent to the portion exceeding 500,000 yen and not exceeding 3,000,000 yen: a rate of 20 percent;

The amount equivalent to the portion exceeding 3,000,000 yen: a rate of 30 percent.

In the case falling under paragraph (2), when any of the following items applies, the amount of the additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, the amount calculated under those paragraphs plus the amount calculated by multiplying the tax amount to be remitted prescribed in paragraph (2) by a rate of 10 percent.

in the case where, during the period up to the day five years before the day preceding the day on which the remittance return was filed after the deadline for filing (limited to a remittance return filed with foreknowledge that a determination based on an investigation by the mayor of the municipality would be made regarding the separately taxed income levy relating to that remittance return; the same applies in the following item), or a reassessment or determination under Article 328-9, paragraphs (1) to (3) was made, an additional charge for failure to file (excluding one to which the following paragraph applies; the same applies in that item) or a substantial additional charge (referred to as "additional charge for failure to file, etc." in Article 328-12, paragraph (3), item (i)) has been collected with respect to the separately taxed income levy;

in the case where an additional charge for failure to file or a substantial additional charge (limited to one to which Article 328-12, paragraph (2) applies) (hereinafter referred to as "specified additional charge for failure to file, etc." in this item and Article 328-12, paragraph (3), item (ii)) has been collected with respect to the separately taxed income levy for which special collection obligation arose in the year preceding, and the year before the year preceding, the year containing the day on which the special collection obligation arose for the separately taxed income levy relating to the remittance return filed after the deadline for filing, or a reassessment or determination under Article 328-9, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case where a remittance return is filed after the deadline for filing, if the filing was not made with foreknowledge that a determination based on an investigation by the mayor of the municipality would be made regarding the separately taxed income levy relating to that remittance return, the amount of additional charge for failure to file prescribed in paragraph (2) on the tax amount relating to that remittance return is, notwithstanding paragraphs (2) to (4), to be an amount equivalent to the amount calculated by multiplying that tax amount by a rate of 5 percent.

When the mayor of the municipality has determined the amount of additional charge for understatement to be collected pursuant to paragraph (1) or the amount of additional charge for failure to file to be collected pursuant to paragraph (2), the mayor must notify the special collection agent of it without delay.

The provisions of paragraph (2) do not apply when a remittance return falling under paragraph (6) has been filed, if that filing was made in a case specified by Cabinet Order as one in which it is found that there was an intention to file by the deadline for filing the remittance return, and was made by the day on which one month elapses from the deadline for filing the remittance return.

In the case falling under paragraph (1) of the preceding Article, if a special collection agent conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and files a remittance return or the written request for reassessment prescribed in Article 20-9-3, paragraph (3) (referred to as the "written request for reassessment" in the following paragraph) based on the facts so concealed or disguised, the mayor of the municipality must, as provided by Cabinet Order, collect, in lieu of the amount of additional charge for understatement prescribed in paragraph (1) of the preceding Article, an amount of substantial additional charge equivalent to the amount calculated by multiplying the shortfall amount resulting from the reassessment that is to be the basis for that calculation by a rate of 35 percent.

In the case falling under paragraph (2) of the preceding Article (excluding the case where the proviso to that paragraph applies), if a special collection agent conceals or disguises all or part of the facts that are to be the basis for calculating the amount of the tax base, and, based on the facts so concealed or disguised, does not file a remittance return by the deadline for filing, or files a remittance return after the deadline for filing, or files a written request for reassessment, the mayor of the municipality must, in lieu of the amount of additional charge for failure to file prescribed in that paragraph, collect an amount of substantial additional charge equivalent to the amount calculated by multiplying the tax amount that is to be the basis for that calculation by a rate of 40 percent.

In the case falling under the preceding two paragraphs, when any of the following items applies (item (i) in the case falling under paragraph (1)), the amount of substantial additional charge prescribed in the preceding two paragraphs is, notwithstanding those paragraphs, the amount calculated under those paragraphs plus the amount calculated by multiplying, by a rate of 10 percent, in the case falling under paragraph (1), the shortfall amount due to the reassessment forming the basis for calculation prescribed in that paragraph, and in the case falling under the preceding paragraph, the tax amount forming the basis for calculation prescribed in that paragraph.

in the case where, during the period up to the day five years before the day preceding the day on which, based on the concealed or disguised facts that are to be the basis for calculating the amount of the tax base prescribed in the preceding two paragraphs, the remittance return was filed after the deadline for filing, or a reassessment or determination under Article 328-9, paragraphs (1) to (3) was made, an additional charge for failure to file, etc. has been collected with respect to the separately taxed income levy;

in the case where a specified additional charge for failure to file, etc. has been collected with respect to the separately taxed income levy for which special collection obligation arose in the year preceding, and the year before the year preceding, the year containing the day on which the special collection obligation arose for the separately taxed income levy relating to the remittance return filed after the deadline for filing, or a reassessment or determination under Article 328-9, paragraphs (1) to (3), or it is found that a determination should be made regarding a specified additional charge for failure to file, etc.

In the case falling under the preceding two paragraphs, if there are grounds prescribed in paragraph (6) of the preceding Article with respect to the filing of the remittance return, the mayor of the municipality does not collect the amount of substantial additional charge calculated on the basis of the amount of the separately taxed income levy relating to that remittance return.

When the mayor of the municipality has determined the amount of substantial additional charge to be collected pursuant to paragraph (1) or (2), the mayor must notify the special collection agent of it without delay.