Act on General Rules for National Taxes

An investigation of a criminal tax case is conducted by the relevant officials of the National Tax Agency or by the relevant officials of the Regional Taxation Bureau or tax office having jurisdiction over the place where the case was discovered.

Of the evidence of criminal tax cases concerning indirect national tax prescribed in Article 156, paragraph (1) (Reports, etc. on Criminal Tax Cases Concerning Indirect National Tax) collected by the relevant officials of the National Tax Agency, evidence concerning a serious criminal tax case must be transferred to the relevant officials of the competent Regional Taxation Bureau, and other evidence to the relevant officials of the competent tax office.

Evidence of a criminal tax case collected by the relevant officials of a Regional Taxation Bureau must be transferred to the relevant officials of the competent tax office; provided, however, that this does not apply to evidence of a serious criminal tax case.

Evidence of a serious criminal tax case collected by the relevant officials of a tax office must be transferred to the relevant officials of the competent Regional Taxation Bureau.

When the same criminal tax case has been discovered in two or more places, the evidence collected at each place of discovery must be transferred to the relevant officials of the tax office having jurisdiction over the place where it was first discovered; provided, however, that when that evidence is evidence of a serious criminal tax case, it must be transferred to the relevant officials of the Regional Taxation Bureau having jurisdiction over the place where it was first discovered.

When it is necessary in order to investigate a criminal tax case, the relevant officials of a Regional Taxation Bureau or tax office may perform their duties outside the jurisdictional district of the Regional Taxation Bureau or tax office to which they belong.

When a district director requires an investigation of a criminal tax case outside the district director's jurisdictional district, the district director may commission the district director of that locality to conduct it.

When a regional commissioner requires an investigation of a criminal tax case outside the regional commissioner's jurisdictional district, the regional commissioner may commission the regional commissioner or district director of that locality to conduct it.

When the relevant official, through the investigation of any of the following criminal tax cases, considers that an offense has been committed, the official must file an accusation with a public prosecutor:

a criminal tax case concerning a national tax other than an indirect national tax; or

a criminal tax case concerning an indirect national tax using the self-assessment system (limited to a case pertaining to a crime under Article 55, paragraph (1) or (3) (Penal Provisions) of the Liquor Tax Act or any other crime specified by Cabinet Order).

When the relevant officials of a Regional Taxation Bureau or tax office have completed the investigation of a criminal tax case concerning indirect national tax (excluding a criminal tax case listed in item (ii) of the preceding Article; the same applies hereinafter), they must report the results of the investigation to the competent regional commissioner or the competent district director; provided, however, that in any of the following cases, they must immediately file an accusation with a public prosecutor:

when the residence of the suspect is unknown;

when the suspect is likely to flee; or

when there is a risk that anything found to serve as evidence will be destroyed.

When the relevant officials of the National Tax Agency have completed the investigation of a criminal tax case concerning indirect national tax, they must notify the competent regional commissioner or the competent district director of the results of the investigation; provided, however, that in any of the cases set forth in the items of the preceding paragraph, they must immediately file an accusation with a public prosecutor.

When a regional commissioner or district director, through the investigation of a criminal tax case concerning indirect national tax, becomes convinced that an offense has been committed, the regional commissioner or district director must, clearly indicating the reasons, notify in writing that the amount equivalent to the fine, the articles subject to confiscation, the amount equivalent to the collection of equivalent value, and the costs incurred for the service of documents and for the transportation and custody of seized articles or recording media submitted by an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 132, paragraph (1), item (i), (a) (On-Site Inspection, Search, Seizure, etc.)) are to be paid at the designated place. In this case, with regard to the articles subject to confiscation, the regional commissioner or district director may give notification that only an offer to pay them is to be made.

In the case referred to in the preceding paragraph, when the regional commissioner or district director finds that any of the following items applies, the regional commissioner or district director must, notwithstanding the provisions of that paragraph, immediately file an accusation with a public prosecutor:

when the circumstances warrant punishment by imprisonment; or

when the offender lacks the financial means to comply with the notification.

When a notification under the provisions of paragraph (1) contains a miscalculation, clerical error or any other similar obvious error, the regional commissioner or district director may correct that notification ex officio until the offender complies with that notification or until an accusation is filed pursuant to the provisions of the preceding paragraph or the following Article.

When a notification has been given pursuant to the provisions of paragraph (1), the statute of limitations for prosecution stops running, and resumes running from the time when 20 days have elapsed counting from the day following the day on which the offender received that notification.

If the offender has complied with the notification referred to in paragraph (1) (if a correction has been made pursuant to the provisions of paragraph (3), the notification as corrected; the same applies in the following paragraph and paragraph (1) of the following Article), no prosecution is to be instituted against the offender for the same case.

In the case where the offender has complied with the notification referred to in the second sentence of paragraph (1), if the offender possesses the articles subject to confiscation, the offender has the obligation to keep them in custody until a public auction or any other necessary disposition is made; provided, however, that the offender may not claim the costs required for that custody.

In the case where the offender has received the notification referred to in paragraph (1) of the preceding Article (if a correction has been made pursuant to the provisions of paragraph (3) of that Article, that correction; referred to as a "notification, etc." in this Article), if the offender fails to comply with the notification within 20 days counting from the day following the day on which the offender received that notification, etc., the regional commissioner or district director must file an accusation with a public prosecutor; provided, however, that this does not apply if the offender complies before the accusation even after that period has elapsed.

The same applies as in the preceding paragraph when a notification, etc. cannot be given because the residence of the offender is unknown, because the offender has refused to receive the documents pertaining to the notification, etc., or for any other reason.

A criminal tax case concerning indirect national tax may be prosecuted only upon an accusation filed by the relevant officials of a Regional Taxation Bureau or tax office under the proviso to Article 156, paragraph (1) (Reports, etc. on Criminal Tax Cases Concerning Indirect National Tax), an accusation filed by the relevant officials of the National Tax Agency under the proviso to paragraph (2) of that Article, or an accusation filed by a regional commissioner or district director under Article 157, paragraph (2) (Notification Dispositions, etc. for Criminal Tax Cases Concerning Indirect National Tax) or the preceding Article.

An accusation under the provisions of Article 155 (Accusation in Criminal Tax Cases Concerning National Taxes Other than Indirect National Taxes, etc.) or the accusation referred to in the preceding paragraph must be made in writing or, as provided by Ministry of Finance Order, by electronic or magnetic means (meaning a method using an electronic data processing system (meaning an electronic data processing system connecting the computer used by the public prosecutor and the computer used by the relevant official through a telecommunications line) or any other method using information and communications technology which is specified by Ministry of Finance Order), with the records prescribed in Article 152, paragraph (1), (3) or (4) (Preparation of Records) attached, and, if there are retained articles, seized articles, or recording media submitted or electronic or magnetic records provided by an order to provide electronic or magnetic records, they must be transferred to a public prosecutor together with the inventory of retained articles, the inventory of seized articles or the inventory of recording media submitted or electronic or magnetic records provided by an order to provide electronic or magnetic records.

In the case where the retained articles or seized articles referred to in the preceding paragraph are in custody under the provisions of Article 144, paragraph (1) (Handling of Retained Articles, etc.), they must be transferred by means of the custody receipt referred to in that paragraph, and the person in whose custody the articles were placed pursuant to the provisions of that paragraph must be notified to that effect.

When retained articles, seized articles or recording media submitted by an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 132, paragraph (1), item (i), (a) (On-Site Inspection, Search, Seizure, etc.)) have been transferred pursuant to the provisions of the preceding two paragraphs, those articles are deemed to have been seized by a public prosecutor pursuant to the provisions of the Code of Criminal Procedure (Act No. 131 of 1948).

When electronic or magnetic records provided by an order to provide electronic or magnetic records (limited to one ordering provision by the method set forth in Article 132, paragraph (1), item (i), (b)) have been transferred pursuant to the provisions of paragraph (2), those electronic or magnetic records are deemed to have been provided by an order to provide electronic or magnetic records prescribed in Article 102-2, paragraph (1) (Order to Provide Electronic or Magnetic Records) of the Code of Criminal Procedure (limited to one ordering provision by the method set forth in item (i), (b) of that paragraph) issued by a public prosecutor pursuant to the provisions of that Code.

The accusation referred to in paragraph (1) may not be withdrawn.

In the case where a regional commissioner or district director has investigated a criminal tax case concerning indirect national tax and has not become convinced that an offense has been committed, the regional commissioner or district director must notify the suspect to that effect. In this case, if there has been a retention or seizure of articles or an order to provide electronic or magnetic records, the regional commissioner or district director must order its release.