National Tax Collection Act

Claims (excluding telephone subscription rights, rights of lease, property subject to the provisions of Article 73-2 (Procedures for Seizure of Book-Entry Corporate Bonds, etc. and Time of Taking Effect), and other claims that cannot be collected; the same applies hereinafter in this Chapter); or

Property subject to the provisions of Article 73 (Seizure of Telephone Subscription Rights, etc.) or Article 73-2 (Seizure of Book-Entry Corporate Bonds, etc.Articles 72-2 through 73-2 (Procedures for Seizure of Specified Electronically Transferred Property Rights, etc. and Time of Taking Effect).

Of the property not subject to the provisions of the preceding three Subsections (hereinafter referred to as "incorporeal property, etc."), the seizure of patent rights, copyrights and other property for which there is no third-party debtor, etc. (excluding rights pertaining to that property (excluding those for which registration is required for the transfer of the right) that are transferred using an electronic data processing system (hereinafter referred to as "specified electronically transferred property rights")) is effected by serving a seizure document on the delinquent taxpayer.

The seizure of specified electronically transferred property rights is effected by transferring the specified electronically transferred property rights to the control of a collection official; provided, however, that where it is difficult to proceed by that method, it may be effected by ordering a right holder of the specified electronically transferred property rights (including the person in whose name they stand, where that person is different) who is able to transfer them to the control of another person to transfer the specified electronically transferred property rights to the control of a collection official.

The effect of the seizure under the preceding paragraph arises at the time when the specified electronically transferred property rights are transferred to the control of a collection official pursuant to the main clause of that paragraph, or when notice of the order under the proviso to that paragraph is given.

The effect of the seizure under the preceding paragraph arises at the time the written notice of seizure is served on the third-party debtor, etc.

The provisions of Article 72, paragraphs (3) and (4) of the preceding Article(Procedures for Seizure of Patent Rights, etc. and Time of Taking Effect) apply mutatis mutandis to the seizure of property prescribed in paragraph (1) for which registration is required for the transfer of the right (excluding that prescribed in the following paragraph). In this case, the term "seizure document" in paragraph (4) of that Article is deemed to be replaced with "written notice of seizure".

The provisions of paragraph (5) of the preceding ArticleArticle 72, paragraph (5) apply mutatis mutandis to the seizure of an exclusive license on a patent right, or any other right, for which a restriction on its disposition does not take effect unless it is registered.

The provisions of Article 65 (Taking Up of Instruments Evidencing a Claim) and Article 67 (Collection of Seized Claims) apply mutatis mutandis to the property prescribed in paragraph (1).

the entire amount of the national tax for which the seizure was made is extinguished through payment, appropriation, cancellation of a correction or any other reason; or

When, due to partial payment of the national tax for which the seizure was made, appropriation, partial cancellation of a correction, a rise in the value of the seized property, or any other reason, its value is found to significantly exceed the total amount of the national tax for which the seizure was made and the other national taxes, local taxes, and other claims that take priority over it;

In the case where the real property subject to the seizure has been sold and the delinquent taxpayer has made an application for release of the seizure of that real property as provided by Ministry of Finance Order, when all of the following apply:

Payment of national tax has been made in an amount equivalent to the remainder obtained by deducting the total amount of other national taxes, local taxes, and other claims that take priority over the national tax for which the seizure was made from the sale price of that real property (where that sale price is less than the price specified by Ministry of Finance Order as equivalent to the market value of that real property at the time of that application, that price specified by Ministry of Finance Order), or, where that equivalent amount exceeds the amount of the national tax for which the seizure was made, in the amount of the national tax for which the seizure was made; and

It is found that there is no hindrance to the collection of national tax.

The release of a seizure is effected by notifying the delinquent taxpayer to that effect; provided, however, that the release of the seizure of claims and of incorporeal property, etc. for which there is a third-party debtor, etc. is effected by notifying the third-party debtor, etc. to that effect.

When a collection official has released the seizure of property listed in the following items, the official must carry out the procedures listedprescribed in the relevant item; provided, however, that the removal prescribed in item (i) may be carried out by the delinquent taxpayer or by a third party in possession of the property.

Movables or securities: delivery thereof, and removal of seals, public notices, and other things used to make the seizure evident;

Specified electronically transferred property rights: transfer to the control of the delinquent taxpayer.

When the district director has released the seizure of real property or other property for which a registration of seizure has been made, the district director must commission the relevant authority to cancel that registration.

The delivery of movables or securities under paragraph (2), item (i) must be made to the delinquent taxpayer, at the place listedprescribed in the relevant item according to the category of cases listed in the following items; provided, however, that property that was in the possession of a third party other than the delinquent taxpayer at the time of the seizure must be delivered to that third party, unless the third party makes an application that it be delivered to the delinquent taxpayer.

Among cases falling under any item of paragraph (1) of the preceding Article or under paragraph (2), item (i) of that Article, cases arising from cancellation of a correction or any other reason attributable to the national government: the place where the property existed at the time of the seizure;

Other cases: the place where the property exists at the time the seizure is released.

The provisions of paragraph (2), item (i) and the preceding paragraph apply mutatis mutandis where the seizure of a claim, motor vehicle, construction machinery, or small vessel has been released and there is an instrument taken up pursuant to the provisions of Article 65 (Taking Up of Instruments Evidencing a Claim) (including as applied mutatis mutandis pursuant to Article 73, paragraph (5) (Taking Up of Certificates of RightsProcedures for Seizure of Telephone Subscription Rights, etc. and Time of Taking Effect)), or a motor vehicle, construction machinery, or small vessel of which a collection official took possession pursuant to the provisions of Article 71, paragraph (3) (Possession of Seized Motor Vehicles, etc.Seizure of Motor Vehicles, Construction Machinery or Small Vessels).

When the purchaser of a specified electronically transferred property right that has been realized pays the purchase price, the district director must transfer that specified electronically transferred property right to the control of the purchaser.

If a person, without justifiable grounds, violates the order under the proviso to Article 72-2, paragraph (1) (Procedures for Seizure of Specified Electronically Transferred Property Rights and Time of Taking Effect), the person who committed the violation is to be punished by imprisonment for not more than three years or a fine of not more than 2,500,000 yen, or both.

If a representative of a corporation (including the administrator of an association or foundation without legal personality), or an agent, employee, or other worker of a corporation or a person, commits a violation of Article 187 or ArticleArticles 187 through 188 (Penal Provisions) in connection with the business or property of that corporation or person, then in addition to punishing the offender, the fine prescribed in the relevant Article is imposed on that corporation or person.