Article 133Process for Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis

①A Resident seeking to apply for permission to defer a tax payment pursuant to the provisions of paragraph (1) of the preceding Article must submit a paper-based application to the competent district tax office director for the locality in which the Resident pays taxes, indicating the amount of income taxes whose payment the Resident is requesting to defer, the period of the deferment (or, if the Resident is requesting to pay the income taxes in two or more installments, the period between installment payments and the amount of each installment payment that the Resident is requesting to make as a deferred payment), and giving the information prescribed by Ministry of Finance Order, accompanied by a document concerning the provision of collateral, by the payment due date for those income taxes, pursuant to Article 128 (Payment upon Filing) or Article 129 (Payment upon Filing in the Event of the Taxpayer's Death).

②Upon the submission of a paper-based application as referred to in the preceding paragraph, the district tax office director examines whether the Resident submitting the paper-based application and the information given in the application meet the requirements set forth in the items of paragraph (1) of the preceding Article; examines whether either the amount of income taxes whose payment the Resident is requesting to defer and the deferment period or the period between installment payments and the amount of each installment payment that the Resident has indicated in the paper-based application are reasonable, in light of the installment payment due dates and amounts as defined in the contract for the deferred-payment transfer prescribed in that paragraph; and examines any other necessary matters; and, based on the results of that examination, either permits the deferment of payment for all or a part of the income taxes to which the application pertains under the conditions indicated in the application or under alternate conditions, or denies the application.

③Before permitting a Resident to defer payment as referred to in the preceding paragraph, if the district tax office director finds that the collateral that the Resident filing the application seeks to provide is not appropriate, the director may request the Resident to change this. If the Resident fails to respond to the request in such a case, the district tax office director may deny the application.

④When permitting a Resident to defer payment or when denying an application as referred to in paragraph (1), the district tax office director must notify the Resident filing the application via a paper-based notice of either the amount of income taxes subject to the permission to defer payment and the conditions of the deferment, or of the denial of the application and the reason therefor.

⑤If a paper-based application as referred to in paragraph (1) is submitted, the district tax office director may suspend collection of all or a part of the amount of income taxes to which the application pertains on finding there to be adequate grounds to do so.