National Tax Collection Act

If the national tax has been paid in full and the property of the delinquent taxpayer is to be seized with respect to the expenses for the delinquent tax collection procedure, the district director must, as provided by Cabinet Order, give the delinquent taxpayer notice of payment.

After a delinquent tax collection procedure has been executed on the property of a delinquent taxpayer, if the delinquent taxpayer dies or a corporation that is the delinquent taxpayer is extinguished by merger, the delinquent tax collection procedure may be continued on that property.

A seizure made, after the death of the delinquent taxpayer, on property in the name of the delinquent taxpayer for that national tax is deemed to have been made against the heir who holds that property with respect to that national tax; however, this does not apply if the collection official knew of the death.

Where the duties of the trustee of a trust have ended, if a new trustee takes office after a delinquent tax collection procedure has been executed, during the period until a new trustee takes office, on property belonging to the trust property, the delinquent tax collection procedure may be continued on that property.

After a delinquent tax collection procedure has been executed on property belonging to the trust property of a corporation that is the trustee of a trust, if a split has been carried out by which the rights and obligations of that corporation as trustee are succeeded to, the delinquent tax collection procedure may be continued on that property.

The execution of a delinquent tax collection procedure is not hindered by a provisional seizure or provisional disposition.

When it is necessary to investigate the property of a delinquent taxpayer for the purpose of a delinquent tax collection procedure, a collection official may, within the scope found to be necessary, question the persons listed in the following items, inspect books and documents relating to the property of such persons (including, where electronic or magnetic records (meaning records made in an electronic form, a magnetic form, or any other form that cannot be perceived by human senses, which are used for information processing by computers) are created or kept in lieu of the creation or keeping of such books and documents, those electronic or magnetic records; the same applies in Article 146-2 (Requests for Cooperation to Business Operators, etc.) and Article 188, item (iii) (Penal Provisions)) and other articles, and request the presentation or submission of such articles (including copies thereof).

a delinquent taxpayer;

a third party who possesses the property of a delinquent taxpayer, and a third party for whom there are reasonable grounds to find that the third party possesses it;

a person who has or had a claim against or an obligation to a delinquent taxpayer, or a person for whom there are reasonable grounds to find that the person has or had such a claim or obligation, or a person for whom there are reasonable grounds to find that the person has acquired property from a delinquent taxpayer; or

a juridical person of which a delinquent taxpayer is a shareholder or investor.

When it is necessary for an investigation concerning a delinquent tax collection procedure, a collection official may retain articles submitted in that investigation.

When it is necessary for the purpose of a delinquent tax collection procedure, a collection official may search the articles or the dwelling or other premises of a delinquent taxpayer.

When it is necessary for the purpose of a delinquent tax collection procedure, a collection official may search the articles or the dwelling or other premises of a third party only where one of the following items applies.

Where a third party who possesses the property of a delinquent taxpayer does not deliver it; or

Where there are reasonable grounds to find that a relative or other person with a special relationship to a delinquent taxpayer possesses the property of the delinquent taxpayer, and that person does not deliver it.

When it is necessary in the course of a search under the preceding two paragraphs, a collection official may have a delinquent taxpayer or a third party open doors, safes, or other containers, or may take the measures necessary to open them himself or herself.

A search must not be conducted from sunset until sunrise; provided, however, that a search commenced before sunset may be continued after sunset.

Notwithstanding the main clause of the preceding paragraph, with regard to inns, restaurants, and other places that the public may enter and leave even at night, where there are reasonable grounds to find that it is unavoidably necessary for the execution of a delinquent tax collection procedure, a search may be conducted even after sunset during the hours when the place is open to the public.

When conducting a search, a collection official must have present as a witness the delinquent taxpayer or third party subject to the search, or a relative living with that person, or an employee or other worker of that person, who has appropriate discretion. In this case, if these persons are absent or do not comply with the request to attend, the collection official must have present as witnesses two or more persons who have attained the age of majority, or an employee of a local government or a police officer.

When conducting a search, seizure, or removal of seized property, if it is found that there is an obstruction to the execution of these measures, a collection official may prohibit entry into and exit from the place while these measures are being carried out, except for the following persons:

a delinquent taxpayer;

a third party who keeps the property subject to seizure, and a third party who has been searched under Article 142, paragraph (2) (Search of Third Parties);

a relative living with a person listed in the preceding two items; and

a person who has the authority to represent a delinquent taxpayer with regard to the delinquent taxpayer's returns, applications, and other matters concerning national taxes.

When a collection official has conducted a search, the collection official must prepare a search record.

When a collection official has prepared a search record, the collection official must deliver a certified copy of it to the delinquent taxpayer or third party that was searched and, where there is a witness other than those persons, to the witness.

The provisions of the preceding two paragraphs do not apply where a seizure record is prepared pursuant to Article 54 (Seizure Record). In this case, a certified copy of the seizure record must be delivered to the third party and the witness referred to in the preceding paragraph.

When it is necessary for an investigation concerning a delinquent tax collection procedure, a collection official may request a business operator (including a corporation established under a special Act) or a government agency or public office to cooperate with regard to the investigation, such as by allowing the inspection or providing of books and documents and other articles that would serve as reference for the investigation.

When conducting questioning, inspection, a request for presentation or submission, or a search under the provisions of this Subsection, or when performing the duties referred to in the preceding Article, a collection official must carry a certificate showing their status and must present it when requested by a person concerned.

The authority to question, inspect, request presentation or submission, retain articles, or search under the provisions of this Subsection must not be construed as having been granted for the purpose of a criminal investigation.