Act on General Rules for National Taxes

A reassessment under the provisions of Article 24 (Reassessment) or Article 26 (Reassessment of Previous Reassessment) (hereinafter referred to as a "reassessment" in the provisions up to Article 72 (Extinctive Prescription of the Right to Collection of National Tax)) that increases the tax amount payable already determined does not affect the tax liability for the part of the national tax pertaining to the tax amount payable already determined.

A reassessment that decreases the tax amount payable already determined does not affect the tax liability for the part of the national tax other than the part pertaining to the tax amount decreased by the reassessment.

A disposition or judgment revoking a reassessment or determination does not affect the tax liability for the part of the national tax other than the part pertaining to the tax amount decreased by the disposition or judgment.

A reassessment or determination is made by the district director of the tax office with jurisdiction over the place for tax payment of the national tax at the time the disposition is made (hereinafter referred to as the "current place for tax payment" in this Article).

With regard to income tax, corporation tax, local corporation tax, inheritance tax, gift tax, land value tax, consumption tax on the transfer, etc. of a taxable asset, or tax for promotion of power-resources development, if the place for tax payment has changed on or after the time when the taxable period of the national tax commenced (for a national tax without a taxable period, the time when its tax liability was established), and the district director of the tax office with jurisdiction over a place for tax payment involved in that change other than the current place for tax payment (hereinafter referred to as the "former place for tax payment" in this paragraph) is not aware of the change or cannot ascertain the place for tax payment after the change, and there are unavoidable circumstances for not being aware of it or not being able to ascertain it, the district director of the tax office with jurisdiction over the former place for tax payment may, notwithstanding the provisions of the preceding paragraph, make a reassessment or determination of that national tax.

If, after making a reassessment or determination, the district director of the tax office prescribed in the preceding two paragraphs becomes aware that the reassessment or determination should not have been made because a tax return for the national tax to which the reassessment or determination pertains had already been lawfully filed with another district director of the tax office, or another district director of the tax office had already made a determination, they must revoke the reassessment or determination without delay.

Notwithstanding the provisions of paragraph (1), a reassessment or determination of self-assessed consumption tax, etc. on imported goods is made by the director-general of the customs house with jurisdiction over the place for tax payment of that consumption tax, etc. In this case, for the purpose of applying the provisions of Articles 24 through 26 (Reassessment and Determination) or Article 28 (Procedures for Reassessment or Determination), the term "district director of the tax office" in those provisions is deemed to be replaced with "director-general of the customs house".

A taxpayer of a national tax subject to the official assessment system must, as provided for in the national tax laws, file a return stating the tax basis of the national tax with the district director of the tax office by the due date for filing it.

The provisions of Article 21, paragraph (1) (Place for Filing Tax Returns) and Article 22 (Time of Filing of Tax Returns, etc. Sent by Mail, etc.) apply mutatis mutandis to the return referred to in the preceding paragraph (hereinafter referred to as a "tax basis return").

For a national tax subject to the official assessment system, the district director of the tax office determines, based on their examination, after the due date for filing a tax basis return (for a national tax for which the filing of a tax basis return is not required, after the time when its tax liability is established), in accordance with the following categories of cases, the matters listed in the relevant item:

where a tax basis return has been filed and the tax basis stated in the return is the same as what the district director of the tax office has found through examination: the tax amount payable;

where no tax basis return has been filed for a national tax for which a tax basis return is required to be filed, or where a tax basis return has been filed and the tax basis stated in the return differs from what the district director of the tax office has found through examination: the tax basis and the tax amount payable;

where the filing of a tax basis return is not required: the tax basis (for the penalty tax prescribed in Article 69 (Tax Items for Penalty Tax) and negligence tax, the tax amount on which their calculation is based; the same applies hereinafter in this Article) and the tax amount payable.

If, after making a determination under the provisions of the preceding paragraph or this paragraph, the district director of the tax office becomes aware that the tax basis determined (in the case listed in item (i) of the preceding paragraph, the tax basis stated in the tax basis return referred to in that item) or the tax amount payable has been overestimated or underestimated, they make a determination changing the tax basis and the tax amount payable pertaining to that determination, based on their examination.

A determination under the provisions of paragraph (1) is made by the district director of the tax office serving a written notice of assessment and determination (in the case listed in paragraph (1), item (i), a written notice of tax payment) stating the tax basis and the tax amount payable pertaining to the determination.

A determination under the provisions of paragraph (2) is made by the district director of the tax office serving a written notice of assessment and determination stating the following matters:

the tax basis and the tax amount payable before the determination;

the tax basis and the tax amount payable after the determination;

if the tax amount payable before the determination increases or decreases as a result of the determination, the tax amount payable by which it increases or decreases.

The provisions of Article 27 (Reassessment or Determination Based on Examination by Officials of the National Tax Agency or National Taxation Bureau), the second sentence of Article 28, paragraph (3) (Matters to be Stated as Supplementary Notes to a Written Notice of Determination) and Article 29 (Effect of Reassessment, etc.) apply mutatis mutandis to a determination made under the provisions of paragraph (1) or paragraph (2) (hereinafter referred to as an "assessment and determination").

An assessment and determination is made by the district director of the tax office with jurisdiction over the place for tax payment of the national tax at the time of the assessment and determination (hereinafter referred to as the "current place for tax payment" in this Article).

With regard to the penalty tax prescribed in Article 69 (Tax Items for Penalty Tax) on income tax, corporation tax, local corporation tax, inheritance tax, gift tax, land value tax, consumption tax on the transfer, etc. of a taxable asset, tax for promotion of power-resources development, or international tourist tax to be collected and paid under the provisions of Article 16, paragraph (1) (Special Collection, etc. by Domestic Business Operators) of the International Tourist Tax Act, if any of the following items applies, the district director of the tax office specified in the relevant item may, notwithstanding the provisions of the preceding paragraph, make an assessment and determination of that penalty tax on the national tax payable as a result of the reassessment or determination, or of the filing of the return filed after the due date or amended return, prescribed in that item, or on national withholding tax:

where a reassessment or determination under Article 30, paragraph (2) (Competent Agency for Reassessment or Determination) has been made: the district director of the tax office who made the reassessment or determination;

where the place for tax payment of the national tax has changed after a reassessment, or a determination under the provisions of Article 25 (Determination) other than one prescribed in the preceding item, has been made or after a return filed after the due date or an amended return has been filed (where the provisions of Article 21, paragraph (2) (Place for Filing Tax Returns, etc.) apply, after the return has been sent under the provisions of paragraph (3) of that Article), or where the place for tax payment of national withholding tax has changed on or after the time when the tax amount payable for it was determined, and the district director of the tax office with jurisdiction over a place for tax payment involved in the change other than the current place for tax payment (hereinafter referred to as the "former place for tax payment" in this item) is not aware of the change or cannot ascertain the place for tax payment after the change, and there are unavoidable circumstances for not being aware of it or not being able to ascertain it: the district director of the tax office with jurisdiction over the former place for tax payment.

Notwithstanding the provisions of paragraph (1), an assessment and determination of consumption tax, etc. on goods received from a bonded area that is subject to the official assessment system or any other consumption tax, etc. to be collected by the director-general of the customs house, or of penalty tax for non-payment or of the heavy penalty tax under Article 68, paragraph (3) or (4) (limited to the part concerning the heavy penalty tax under paragraph (3) of that Article) (Heavy Penalty Tax) on international tourist tax to be collected and paid under the provisions of Article 17, paragraph (1) (Special Collection, etc. by Foreign Business Operators) of the International Tourist Tax Act, is made by the director-general of the customs house with jurisdiction over the place for tax payment of those national taxes. In this case, for the purpose of applying the provisions of the preceding two Articles, the term "district director of the tax office" in those provisions is deemed to be replaced with "director-general of the customs house"; the phrase "after the due date for filing a tax basis return (for a national tax for which the filing of a tax basis return is not required, after the time when its tax liability is established), in accordance with the following" in the part of paragraph (1) of the preceding Article other than the items is deemed to be replaced with "in accordance with the following"; and the term "tax amount payable" in paragraph (1), items (ii) and (iii), paragraphs (2) and (3), and paragraph (4), items (i) and (ii) of that Article is deemed to be replaced with "tax amount, etc.".

Where the director-general of the customs house makes an assessment and determination under the provisions of the preceding paragraph, if the assessment and determination concerns consumption tax to be collected immediately under the provisions of Article 8, paragraph (6) (Tax Exemption for Transfer of Export Goods at Export Goods Retail Shops) of the Consumption Tax Act, or in any other case specified by Cabinet Order, the director-general may have the relevant official give notice of the assessment and determination orally, in lieu of serving the written notice of assessment and determination or written notice of tax payment under the provisions of paragraph (3) or (4) of the preceding Article as applied following the replacement of terms under the preceding paragraph.