Article 721Additional Charge for Understatement and Additional Charge for Failure to File Relating to Water Utilization and Land Benefit Tax, etc.

①Where a remittance return is submitted by its deadline for filing (including the case where a remittance return is submitted after its deadline for filing and the proviso to the following paragraph or paragraph (8) applies; the same applies hereinafter in this paragraph), and a reassessment under Article 719, paragraph (1) or (3) has been made, the head of the local government must, except where the head finds that there are justifiable grounds for the error in the tax base amount or tax amount relating to the remittance return before that reassessment, collect an amount of additional charge for understatement equivalent to the amount calculated by multiplying the shortfall amount resulting from that reassessment (hereinafter in this paragraph referred to as the "covered shortfall") by a rate of 10 percent (where the covered shortfall (where, before that reassessment, a reassessment has been made with respect to the water utilization and land benefit tax, etc. relating to that reassessment, the amount obtained by adding to it the total of the shortfall amounts resulting from that earlier reassessment (where it is found that there were justifiable grounds for the error in the tax base amount or tax amount relating to the remittance return before that earlier reassessment, the amount after deducting the shortfall amount resulting from that earlier reassessment, and where, with respect to that water utilization and land benefit tax, etc., there has been a reassessment reducing the amount payable, or a change of the original disposition by a ruling or judgment on a request for review or suit relating to a reassessment, the amount after deducting the amount equivalent to the portion reduced by them)) exceeds the greater of the amount equivalent to the tax amount relating to the remittance return in the case where it was submitted by its deadline for filing and 500,000 yen, the amount obtained by adding the amount calculated by multiplying the amount equivalent to the excess portion (where the covered shortfall is less than the amount equivalent to the excess portion, the covered shortfall) by a rate of 5 percent).

②In any of the following cases, the head of the local government must collect an amount of additional charge for failure to file equivalent to the amount calculated by multiplying the tax amount payable as a result of the remittance return, determination or reassessment prescribed in each item by a rate of 15 percent; provided, however, that this does not apply where it is found that there were justifiable grounds for the remittance return not having been submitted by its deadline for filing.

③Where, in a case falling under the preceding paragraph (excluding where the proviso to that paragraph or paragraph (8) applies; the same applies in the following paragraph and paragraph (5)), the tax amount payable prescribed in the preceding paragraph (in the case of item (ii) or (iii) of that paragraph, the amount obtained by adding to it the total of the tax amounts payable by a remittance return, relating to the water utilization and land benefit tax, etc. concerned, submitted after its deadline for filing before the reassessment prescribed in those items, or by a reassessment or determination under Article 719, paragraphs (1) to (3) (where there has been a reassessment reducing the tax amount payable, or a change of the original disposition by a ruling or judgment on a request for review or suit relating to a reassessment, the amount after deducting the amount equivalent to the tax amount of the portion reduced by them; referred to in the following paragraph as the "cumulative remitted tax amount"); referred to in the following paragraph as the "cumulative remitted tax amount after addition") exceeds 500,000 yen, the amount of additional charge for failure to file prescribed in the preceding paragraph is, notwithstanding the provisions of that paragraph, the amount obtained by adding, to the amount calculated pursuant to the provisions of that paragraph, the amount calculated by multiplying the amount equivalent to the excess portion (where the tax amount payable prescribed in that paragraph is less than the amount equivalent to that excess portion, that tax amount payable) by a rate of 5 percent.

④In the case falling under paragraph (2), if the cumulative remitted tax amount after addition (or, where among the facts forming the basis of calculating that cumulative remitted tax amount after addition there is a fact that was not made the basis of calculating the tax amount (including the tax amount equivalent to the amount of a refund) before the remittance return, determination or reassessment prescribed in the items of that paragraph, and it is found that there are no grounds attributable to the special collection agent concerned for this, the tax amount after deducting the amount calculated, as provided by Cabinet Order, as the tax amount based on that fact) exceeds 3,000,000 yen, the amount of additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding two paragraphs, the amount obtained by deducting, from the total of the amounts calculated by dividing the cumulative remitted tax amount after addition into the amounts set forth in the following items and multiplying each amount by the rate provided respectively in those items, the total of the amounts calculated by dividing the cumulative remitted tax amount into the amounts set forth in those items and multiplying each amount by the rate provided respectively in those items:

⑤In the case falling under paragraph (2), when any of the following items applies, the amount of the additional charge for failure to file prescribed in that paragraph is, notwithstanding the preceding three paragraphs, the amount calculated under those paragraphs plus the amount calculated by multiplying the tax amount to be remitted prescribed in paragraph (2) by a rate of 10 percent.

⑥Where a remittance return is submitted after its deadline for filing, if its submission was not made with foreknowledge that a determination by an investigation of the head of the local government would be made with respect to the water utilization and land benefit tax, etc. relating to that remittance return, the amount of additional charge for failure to file prescribed in paragraph (2) relating to the tax amount relating to that remittance return is, notwithstanding the provisions of that paragraph through paragraph (4), the amount equivalent to the amount calculated by multiplying that tax amount by a rate of 5 percent.

⑦Where the head of the local government has determined the amount of additional charge for understatement to be collected under the provisions of paragraph (1) or the amount of additional charge for failure to file to be collected under the provisions of paragraph (2), the head must notify the special collection agent without delay.

⑧The provisions of paragraph (2) do not apply when a remittance return falling under paragraph (6) has been filed, if that filing was made in a case specified by Cabinet Order as one in which it is found that there was an intention to file by the deadline for filing the remittance return, and was made by the day on which one month elapses from the deadline for filing the remittance return.