National Tax Collection Act

If a taxpayer, for the purpose of evading the execution of the delinquent tax collection procedure or collection pursuant to a request for collection assistance by a tax treaty partner, etc., conceals or damages their property or disposes of it to the detriment of the State, falsely increases the burden on that property, or alters its present condition so as to reduce its value, or increases the expenses for the delinquent tax collection procedure relating to that delinquent tax collection procedure or the expenses relating to collection pursuant to a request for collection assistance by a tax treaty partner, etc., that person 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.

The same applies where a third party in possession of the taxpayer's property commits an act referred to in the preceding paragraph for the purpose of enabling the taxpayer to evade the execution of the delinquent tax collection procedure or collection pursuant to a request for collection assistance by a tax treaty partner, etc.

If a person, knowing the circumstances, becomes the counterparty of the taxpayer or of the third party in possession of the property in an act referred to in the preceding two paragraphs, the person who committed the violation as the counterparty is to be punished by imprisonment for not more than two years or a fine of not more than 1,500,000 yen, or both.

The offenses under paragraphs (1) and (2) (excluding the portions of those provisions pertaining to the execution of the delinquent tax collection procedure) also apply to a person who has committed those offenses outside Japan.

The offense under paragraph (3) (excluding the portion pertaining to the execution of the delinquent tax collection procedure) follows the example of Article 2 (Crimes Committed outside Japan) of the Penal Code (Act No. 45 of 1907).

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.

In a case that falls under any of the following items, the person who committed the violation is punished by imprisonment for one year or less or a fine of 500,000 yen or less:

where the person fails to answer a question by a collection official under the provisions of Article 141 (Authority of Collection Officials to Question and Inspect in Investigations Concerning Delinquent Tax Collection Procedures) or makes a false statement;

where the person refuses, obstructs, or evades an inspection under the provisions of Article 141; or

where, in response to a request under the provisions of Article 141 for the presentation or submission of articles, the person fails to comply without justifiable grounds, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records.

A person who makes a false statement on the matters to be stated pursuant to the provisions of Article 99-2 (Statement Indicating That the Relevant Person Is Not an Organized Crime Group Member, etc.) (including as applied mutatis mutandis pursuant to Article 109, paragraph (4) (Sale by Private Contract)) is to be punished by imprisonment for not more than six months or a fine of not more than 500,000 yen.

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 Articles 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.

If the provisions of the preceding paragraph apply to an association or foundation without legal personality, its representative or administrator represents that association or foundation without legal personality with respect to the act of litigation, and the provisions of laws concerning criminal procedure that apply where a corporation is the accused or a suspect apply mutatis mutandis.