INCOME TAX LAW
CHAPTER VI
Reinvestigation, Petition and Administration Litigation
Article 67. If a person liable to pay taxes objects to the amount of income as notified by the Government on the basis of the provisions of Article 39, he may, within twenty days of receipt of such notification, apply to the Government for reinvestigation, stating the reasons for his objection.
Even if an application has been made, as referred to in the preceding paragraph, the collection of taxes shall not be deferred by the Government.
Article 68. When an application, as referred to in Paragraph 1 of the preceding article, has been made, the matter shall be decided by the Government in accordance with the resolution of the Income Reinvestigation Committee.
The Income Reinvestigation Committee may question the applicant, as referred to in Paragraph 1 of the preceding article, in regard to facts concerning his income.
The provisions of Article 38 shall apply with necessary modifications in respect of the resolution of the Income Reinvestigation Committee.
Article 69. An Income Reinvestigation Committee shall be set up within the jurisdiction of each taxation superintendence bureau.
The Income Reinvestigation Committee shall consist of the following members:
1. Three persons appointed by the Minister of Finance from among senior officials of the taxation superintendence bureau; 2. One person for each prefecture and four persons for the Hokkaido, who are elected by members of the Income Investigation Committee from among themselves in each prefecture or the Hokkaido within the jurisdiction of the taxation superintendence bureau.
Matters pertaining to the Income Reinvestigation Committee, its members and reserve members other than those which are provided for in the present law, shall be prescribed by Ordinance.
Article 70. Members of an Income Reinvestigation Committee who have been elected from among members of the Income Investigation Committee shall be entitled to daily allowances and travelling expenses.
Article 71. If a person objects to the decision, as referred to in Paragraph 1 of Article 68, he may file a petition with the Government, or institute a law suit at the Court of Administrative Litigation.
CHAPTER VII
Collection
Article 72. Classified income tax on Class A incomes from dividends and interest, Class A earned incomes or Class A retirement incomes shall be collected at the time of payment and the payer shall pay it to the Government by the 10th of the following month.
Article 73. The annual amount of classified income tax on real property incomes, Class B incomes from dividends and interest, business incomes, incomes from forests, Class B earned incomes and the annual amount of composite income tax on the gross income of individuals shall be divided into four parts and collected during the four periods mentioned below; but if a peron [sic] liable to pay taxes ceases to have 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, the income tax payable by him may be collected immediately:
First period: From July 1 to July 31 of the year concerned;
Second period: From September 1 to September 30 of the year concerned;
Third period: From November 1 to November 30 of the year concerned;
Fourth period: From February 1 to the last day of February of the following year.
Article 74. If the classified income tax to be collected in accordance with the provision of Article 72 fails to be collected, or if the tax so collected fails to be paid to the Government, the same shall be collected from the payer in a manner similar to that used in collecting national taxes.
If, in the case of the dissolution of a juristic person, the remaining property has been distributed without paying the tax collectable in accordance with the provisions of the preceding paragraph, the liquidators shall be jointly and severally liable for payment of the said tax.
CHAPTER VIII
Miscellaneous Provisions
Article 75. When a person who is liable to pay taxes has suffered severe financial depletion on account of a disaster, unemployment or other circumstances and is deemed to have difficulty in paying taxes, the Government may reduce or remit income tax as provided by Ordinance.
Article 76. The Government may, in respect of income tax reducible or remissible in accordance with the provisions of the preceding article, defer the collection of taxes until a decision has been reached in regard to the reduction or remission.
Article 77. A person who has floated public bonds or corporation debentures which call for payment of interest within the area where the present law is in force (a person who has done the same by commission in the case of floatation by commission) shall without delay file with the Government a report containing particulars as specified by Ordinance in respect of the public bonds or corporation debentures.
Article 78. A person receiving payment of interest or dividends in respect
of uninscribed public bonds, corporation debentures or shares within the area where the present law is in force shall notify the person in charge of payment of the interest or dividends, of his full name or appellation, domicile and other necessary matters as prescribed by Ordinance.
The person in charge of payment of interest or dividends shall make payment thereof after causing the notification, as referred to in the preceding paragraph, to be made.
Article 79. A person who pays salaries, wages, annual allowances, compensation for expenses, annuities, pensions or bonuses or allowances of the nature of those which have been referred to shall file with the Government statements of payment as prescribed by Ordinance.
Article 80. Persons who are enumerated below shall present to the Government a statement of payments as prescribed by Ordinance:
1. Persons who pay salaries, wages, annual allowances, compensations for expenses, annuities, pensions or bonuses or allowances of the nature of those which have been referred to; 2. Persons who pay interest on public bonds, corporation debentures or deposits or profits accruing from the joint-operation-trust; 3. Juristic persons who pay dividends of profits or interest or make distributions of surplus funds.
A trustee of trusts other than the joint-operation-trust shall present a statement of accounts to the Government in respect of each trust as prescribed by Ordinance.
Article 81. The superintendent of the taxation office or his deputy may, if he deems it necessary from the standpoint of investigation, question persons liable, or who are deemed to be liable, to pay taxes; or he may inspect books, documents and other articles pertaining to their business.
The superintendent of the taxation office or his deputy may, if he deems it necessary from the standpoint of investigation, question persons in charge of presenting statements of payment or statements of account, as referred to in Paragraphs 1 or 2 of the preceding article; or he may inspect books, documents and other articles pertaining thereto.
Article 82. The superintendent of the taxation office or his deputy may, if he deems it necessary from the standpoint of investigation, question persons who are deemed to be liable to pay money or deliver goods to persons liable, or deemed to be liable, to pay taxes, or to persons who are deemed to be entitled to receive payment of money or delivery of goods from persons liable, or deemed to be liable, to pay taxes, in respect of the amount, quantity, and value of the same, and the date of payment, etc.
Article 83. The Government may, as prescribed by Ordinance, grant a subvention to a person who has collected classified income tax on Class A earned incomes in accordance with the provisions of Article 72, and to a person who has filed statements of payment or statements of account as referred to in Paragraph 1 or Paragraph 2 of Article 80.
Article 84. In the case of classified income tax on real property incomes, Class B incomes from dividends and interest, business incomes, Class B earned incomes, incomes from forests and Class B retirement incomes as well as composite income tax on the gross income of individuals, the place of domicile of the person liable to pay taxes or the place of residence of the said person in the absence of a place of domicile shall be the place for payment of taxes, provided, however, that a person who is outside the place of domicile pay to the Government income tax at the place of residence by reporting to that effect.
A person having neither a domicile nor a place of residence within the area where the present law is in force, shall determine the place for payment of taxes and notify the Government of the same. In the absence of such notification the Government shall designate a place for payment of taxes.
Article 85. When a person liable to pay taxes does not actually live at the place designated for payment of taxes, he shall appoint an agent for payment of taxes and to attend to the report of his income, and all matters pertaining to income tax, and file a report with the Government; the same shall hold good in the case where the domicile or place of residence is about to be removed to a place outside the area where the present law is in force.
Article 86. In cases where an act or the method of accounting of a family corporation is deemed to be aimed at the evasion of income tax in respect of the incomes of any shareholders or partners therein, or their relatives or employees or juristic persons who have investment relations therewith or any persons specially related to the same, the Government may calculate the amount of the incomes of such persons in accordance with its judgment.
A "family corporation" within the meaning of the preceding paragraph is a juristic person as provided for in Paragraph 3 of Article 17 of the Juristic Person Tax Law.
Article 87. The Hokkaido, prefectures, municipalities, towns, villages and other public bodies may not impose a surtax on the income tax.