CHAPTER IV
Declaration, Application, Investigation and Decision
Article 34. A person who is liable to pay classified income tax in respect of real property incomes, Class B incomes from dividends and interest, business incomes, Class B earned incomes, incomes from forests or Class B retirement incomes, or a person who is liable to pay composite income tax in respect of gross incomes of individuals shall report to the Government the kinds and amounts of income and other necessary matters by March 15 every year, as prescribed by Ordinance.
A person who desires to obtain a deduction in virtue of the provisions of Article 25 shall present a written application therefor as prescribed by Ordinance, simultaneously with the report referred to in the preceding paragraph.
Article 35. A person who has Class A earned incomes shall, as prescribed by Ordinance, make a declaration to the Government of necessary matters pertaining to the deduction in virtue of the provisions of Article 16.
A person who desires to obtain a deduction in virtue of the provisions of Article 24 shall present a written application therefore to the Government as prescribed by Ordinance.
Article 36. The amounts of real property income, Class B incomes from dividends and interest, business incomes, Class B earned incomes, incomes from forests and Class B retirement incomes as well as the amount of gross income of individuals shall be determined by the Government on the basis of an investigation made by the Income Investigation Committee.
If an omission has been found in respect of the decision of the amount of incomes as referred to in the preceding paragraph after the adjournment of the Income Investigation Committee, the amount of the incomes concerned may still be determined by the Government on the basis of an investigation made by the Income Investigation Committee for three years from the year following that in which the decision ought to have been made.
If, after the adjournment of the Income Investigation Committee, a person having an income as referred to in Paragraph 1 has reported that he is liable to pay tax or a person who is liable to pay tax has reported that there has been an increase in the amount of his income, the amount of
income concerned shall be determined by the Government notwithstanding the provisions of the preceding two paragraphs.
When a person who is liable to pay taxes ceases to have a domicile or place of residence within the area where the present law is in force, without giving notice of an agent to take charge of payment of his taxes, prior to the decision of incomes in virtue of the provisions of Paragraph 1, the amount of such incomes may be determined by the Government on the basis of its investigation, notwithstanding the provisions of Paragraph 1.
The provisions of the preceding four paragraphs shall not apply in respect of a person who is deemed to have no assessable amount for taxation as a result of the deduction in virtue of the provisions of Article 25 or Article 26 (2).
Article 37. In case the Income Investigation Committee fails to be constituted by May 31, the amount of income involved shall be determined by the Government.
In case the Income Investigation Comittee [sic] fails to complete the investigation within the period referred to in Article 58 from the day of its opening, or by May 31, the amount of incomes, the investigation whereof has not been completed, shall be determined by the Government.
Article 38. In case the Government deems any decision of the Income Investigation Committee to be improper, the matter shall be referred back for re-investigation within a period not exceeding 7 days for so doing, and in case the decision is again deemed improper, or in case the investigation fails to be completed within the period specified for re-investigation, the amount of income shall be determined by the Government.
Article 39. When the amount of income has been determined in accordance with the provisions of the preceding three articles, the Government shall notify the person liable to pay taxes of its decision.
In case a person liable to pay taxes, and who has no domicile or place of residence within the area where the present law is in force, fails to give notice of an agent to take charge of payment of taxes, the notification as referred to in the preceding paragraph may be made in the form of a public notice. In such case, it shall be deemed that the notification has been made if and when seven days have elapsed since the first day on which it was published.
CHAPTER V
Income Investigation Committee
Article 40. An Income Investigation Committee shall be organized within the jurisdiction of each taxation office ; provided, however, that in respect to a municipality within the jurisdiction of a taxation office, an Income Investigation Committee may be specially organized by Ordinance.
The number of members on an Income Investigation Committee shall be prescribed by Ordinance ; but any increase or reduction in number may be made only at the time of re-election.
Article 41. Members of an Income Investigation Committee shall be elected in each electoral district.
When the election of members of an Income Investigation Committee is made, the same number of reserve members shall be elected at the same time.
Article 42. The electoral district for members and reserve members of an Income Investigation Committee shall be based on the district within which an Income Investigation Committee shall be appointed, and the voting district and the counting district shall be determined by the limits of a municipality, town or village ; but in the case of a municipality which has been designated in accordance with the provisions of Article 6 or Paragraph 3 of Article 82 of the Law Governing the Organization of Municipalities, the limits of a ward shall form the basis.
An association of towns and villages which jointly deal with the whole of the affairs of the towns and villages or the affairs of their offices, shall be deemed individual towns or villages ; and in the case of an area where the Law Governing the Organization of Townships and Corporate Villages is not in force, that which corresponds to a town or village shall be deemed a town or a village.
Article 43. Persons who reside or live within the electoral district and who, in respect of incomes as referred to in Paragraph 1 of Article 36 or the businesses of individuals, have reported the amount of income or the amount of net profit by the legal time-limit in the year concerned and obtained a decision thereon, and who have been registered in the poll-register may elect members and reserve members of an Income Investigation Committee or may be elected members or reserve members of the said Committee ; provided, however, that persons who come within the purview of one of the following numbers shall be excepted :
1. Persons under disability ; 2. Insolvents who have not been reinstated ; 3. Persons who have been subjected to a process for recovery of national taxes in arrears less than one year before ; 4. Persons who have been condemned to penal servitude or imprisonment for six years or more, or who have been penalized for felony under the old Criminal Code ; 5. Persons who have been sentenced to penal servitude or imprisonment for less than six years and who have not yet served the term or been freed from the execution of the sentence ; 6. Persons who have been sentenced to a penalty of no less than imprisonment in accordance with the provisions of Article 94 or Article 95 and served the term or obtained exemption from the execution of the sentence except by prescription less than five years before ; 7. Persons who have been punished with a fine or minor fine in accordance with the provisions of Articles 88 to 95. or the provisions of Articles 33 to 35 of the Business Tax Law, with the case decided less than five years before.
In case where an election is to be held prior to the decision of the amount of income and the amount of net profit for the year concerned, payment of income tax or business tax in respect of incomes as referred to in Paragraph 1 of Article 36 or the businesses of individuals during the preceding year shall be deemed a decision obtained in regard to the amount of income or the amount of net profit for the year concerned.
In the case of the preceding two paragraphs, the decision of the amount of income or the amount of net profit which has been made in respect of a predecessor shall be deemed as the decision of the amount of income or the amount of net profit which has been made in respect of his successor and such payment of taxes or declaration made by a predecessor shall be deemed as payment of taxes or declaration made by his successor.
The provisions pertaining to the poll-register shall be prescribed by Ordinance.
Article 44. Affairs pertaining to the voting and the opening of ballots shall be in charge of the heads of municipalities, wards, towns or villages, and affairs pertaining to election meetings shall be in charge of the superintendents of taxation offices.
In respect to the association of towns or villages referred to in Paragraph 2 of Article 44, the administrators of the associations, and in respect to the areas where the Law Governing the Organization of Townships and Corporate Villages is not in force, those who correspond to the headmen of towns or villages, shall be deemed the headmen of towns or villages.
Article 45. The superintendents of taxation offices shall determine the date for the election of members or reserve members of an Income Investigation
Committee and notify the heads of municipalities, wards, towns or villages of the same.
When the heads of municipalities, wards, towns or villages have received the notification, as referred to in the preceding paragraph, they shall issue a public notice to the effect at least seven days prior to the date for election.
Article 46. The election shall be conducted by secret voting.
The balloting shall be limited to one vote for each person for the election of members and of reserve members of the Income Investigation Committee.
The electors shall go to the polling-places in person within the hours fixed for balloting on the day of election and shall vote by stating the full name of one candidate each on separate voting-papers.
The voting-paper shall be handed to the elector at the polling-booth on the day of election.
Article 47. The heads of municipalities, wards, towns or villages shall investigate the votes cast and immediately report the results to the superintendents of taxation offices.
Article 48. When the superintendents of taxation offices have received the report, as referred to in the preceding article, they shall hold election meetings to conduct an investigation of the same.
Article 49. The presence of witnesses shall be required at the voting, the opening of ballots, and at election meetings.
The provisions pertaining to witnesses shall be prescribed by Ordinance.
Article 50. Persons who have polled the largest number of votes shall be returned. If the number of votes is the same, the older person is to be selected and if the ages are the same, the selection shall be decided by drawing lots.
Persons who have been elected members of an Income Investigation Committee may not be reserve members even though they may be elected reserve members at the same time.
Article 51. When the election of members and reserve members of an Income Investigation Committee has been completed, the superintendents of taxation offices shall publish the full names of the persons elected and also notify
the persons elected and the headmen of the municipalities, wards, towns and villages.
When the headmen of the municipalities, wards, towns and villages have received the notification as referred to in the preceding paragraph, they shall publish the full names of the persons elected.
Article 52. Persons who have been elected members or reserve members of an Income Investigation Committee may not decline to serve on the Committee without good reasons.
Article 53. The term of office of members and reserve members of an Income Investigation Committee shall be four years calculating from the month in which the election day occurs.
In cases where a change in the limits of the electoral district has resulted in an increase or decrease by over one-fifth of the total number of persons within the district concerned who have obtained decisions of the amounts of income for the year concerned in respect of incomes as referred to in Paragraph 1 of Article 36 and/or who have obtained decisions of the amounts of net profit for the year concerned in respect of the businesses of individuals, the term of office of members and reserve members of an Income Investigation Committee shall terminate with the month in which the day of such change in the electoral district occurs ; but the term of office shall terminate with March if such change in the electoral district occurs in January or February, with September if such change occurs either in April to August or with March in the following year if such change occurs in December.
The provisions of Paragraph 2 of Article 43 shall apply with necessary modifications in respect of the case where a change in the limits of the electoral district has occurred prior to the decision of the amounts of income and the amounts of net profit for the year concerned.
Article 54. The re-election of members and reserve members of an Income Investigation Committee shall be held in the month following that in which the term of office of the predecessors terminates.
Article 55. When a vacancy has occurred in the Income Investigation Committee, the person to fill the vacancy shall be selected from among the reserve members polling the largest number of votes in order, and if the number of votes polled is the same, the older person shall be selected, and if the ages are the same, the selection shall be decided by drawing lots.
When a vacancy has occurred in the Income Investigation Committee and if there is no reserve member to fill the vacancy, a by-election of members of the Income Investigation Committee shall be held.
Article 56. A person who has become a member of an Income Investigation Committee or a reserve member thereof shall be in office for the remaining term of office of the predecessor.
The term of office of members and reserve members of an Income Investigation Committee who have been newly elected as a result of a change in the limits of the electoral district shall terminate in four years from the month in which the date of election occurs of the members and reserve members of the Income Investigation Committee prior to such change in the electoral district.
Article 57. When a member or reserve member of an Income Investigation Committee has come within the purview of any of the numbers of Paragraph 1 of Article 43 or when he has ceased to be liable to pay taxes in respect either of income tax on incomes as referred to in Paragraph 1 of Article 36 or of business tax or when he has ceased to reside within the electoral district concerned, he shall be disqualified from holding office.
Article 58. The number of days an Income Investigation Committee shall be in session may not exceed 30 days and shall be prescribed by Ordinance according to local conditions.
Article 59. An Income Investigation Committee shall open its session according to the notification of the superintendent of the taxation office concerned.
Article 60. An Income Investigation Committee shall elect a chairman from among its members at the beginning of the session every year.
Article 61. The superintendent of the taxation office shall investigate the amount of incomes of persons who are deemed to be liable for payment of taxes in respect of incomes as referred to in Paragraph 1 of Article 36 every year and forward the returns to the Income Investigation Committee.
The provisions of the preceding paragraph shall not apply in respect of a person who is deemed to have no assessable amount for taxation as a result of the deduction in virtue of the provisions of Article 25 or Article 26 (2).
The provisions of the preceding two paragraphs shall apply with necessary modifications in respect of Paragraph 2 of Article 36.
Article 62. An Income Investigation Committee may not pass a resolution unless a majority of its full membership is in attendance.
Matters for deliberation shall be decided by a majority vote of the members present. In case of a tie, it shall abide by the decision of the chairman.
Article 63. No member of an Income Investigation Committee shall take part in deliberations on matters pertaining to his own income or of a person who is in the same census register as himself.
Article 64. The superintendent of the taxation office or his deputy may attend the meetings of the Income Investigation Committee and state his opinion.
Article 65. Members of an Income Investigation Committee shall be granted allowances and travelling expenses.
Article 66. No member of an Income Investigation Committee shall act as an agent of persons liable to payment of taxes, or be engaged in the business of giving counsel to such persons, or conduct such business for remunerations, in respect to an application for investigation, petition, or the institution of a lawsuit at the Court of Administrative Litigation concerning the standard amount of assessment which has been determined on the basis of an investigation by an Income Investigation Committee of which he is a member.