Article 74-7-2Request for Reports from Specified Business Operators, etc.

一where, in past examinations concerning national tax of persons who conduct transactions of the same type as the specified transactions conducted by the specified transaction parties, it has been found, with regard to more than half of the persons whose tax basis for a specified tax item, such as the amount of income pertaining to those transactions, exceeds 10 million yen, that a reassessment or determination, etc. (including a notice of tax payment under the provisions of Article 36, paragraph (1) (limited to the part pertaining to item (ii)) (Notice of Tax Payment)) should be made with regard to the tax basis, etc. or tax amount, etc. of that tax item pertaining to those transactions;

二where it is presumed that the specified transaction parties will, by using the goods or services pertaining to the specified transactions they conduct, cause facts that violate the provisions of the national tax laws with regard to the tax basis, etc. or tax amount, etc. of a specified tax item; or

三where, because the form of the specified transactions conducted by the specified transaction parties is an unreasonable one that would not normally be adopted from the viewpoint of economic necessity, it is presumed that the specified transaction parties will cause facts that violate the provisions of the national tax laws with regard to the tax basis, etc. or tax amount, etc. of a specified tax item pertaining to those specified transactions.

一competent regional commissioner: the regional commissioner having jurisdiction over the location of the domicile or residence of the specified business operator, etc.;

二specified transaction: of transactions with a business operator, etc. (meaning a business operator (including a corporation established under a special Act) or a public agency; the same applies hereinafter in this item) conducted by using an electronic data processing system, transactions conducted by using a venue that a business operator, etc. provides by using an electronic data processing system, and other transactions, a transaction for which it is difficult to identify the persons conducting it without a disposition under the provisions of paragraph (1);

三specified transaction party: a person who conducts specified transactions (excluding a specified business operator, etc., and, where the case listed in item (i) of the preceding paragraph applies, limited to a person who conducts the specified transactions referred to in that item exceeding the transaction amount that could give rise to a tax basis of 10 million yen for a specified tax item);

四specified matters: the following matters:

イname (or, for a corporation, its name);

ロdomicile or residence;

ハidentification number (meaning an individual number prescribed in Article 2, paragraph (5) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013) (referred to as an "individual number" in Article 124 (Statement of Name, Address and Identification Number of Persons Submitting Documents)) or a corporate number prescribed in Article 2, paragraph (16) of that Act; the same applies hereinafter).