CHAPTER IX
Penal Provisions
Article 88. Any person who by fraud or dishonest act has evaded payment of income tax shall be punished by a fine or minor fine corresponding to three times the amount of tax evaded, but if he has surrendered himself to justice or has notified the superintendent of the taxation office, he shall be acquitted from blame.
In the case of the preceding paragraph, the amount of income of the person who has evaded the income tax in respect of the income as referred to in Paragraph 1 of Article 36 shall, notwithstanding the provisions of Paragraph 2 of the said article, be determined by the Government and the tax thereon shall be collected forthwith.
Article 89. A person who has violated the provisions of Article 66 shall be punished by a fine not exceeding 1,000 yen.
Article 90. A person who, without good reason, has failed to present a record of payment or a statement of account, which ought to be presented to the Government in accordance with the provisions of Paragraph 1 or Paragraph 2 of Article 80, or who has presented a record of payment or a statement of account containing false entries, shall be punished by a fine not exceeding 1,000 yen.
Article 91. Any person who has given a false notification in respect of the matters as provided in Paragraph 1 of Article 78 upon obtaining payment of interest or dividends in respect of uninscribed public bonds, corporation debentures or shares, and any person who has made payment without causing notification to be given, in violation of the provisions of Paragraph 2 of the said article, shall be punished by a fine not exceeding 500 yen.
Article 92. A person who has denied, obstructed or evaded the inspection of
books, documents and other articles in accordance with the provisions of Article 81 or has shown books and documents containing false entries, shall be punished by a fine not exceeding 1,000 yen.
Article 93. If a person who is, or was, engaged in the investigation or reinvestigation of incomes has, without good reason, divulged any secret of which he obtained knowledge in connection with the said investigation or reinvestigation, he shall be punished by a fine not exceeding 1,000 yen.
Article 94. A person who, in connection with the election of members or reserve members of an income investigation committee, or of members or reserve members of an income reinvestigation committee, has offered gifts in money, in kind, or other benefits relating to property or to public or private offices to the electors or electioneers, or entertained them, or offered or promised to entertain them, with the object of getting himself returned, or causing others to be returned or causing others not to be returned, shall be condemned to penal servitude or imprisonment for a term not exceeding three years or punished by a fine not exceeding 2,000 yen.
The provisions of the preceding paragraph shall hold good also in respect of a person who has received a gift or entertainment mentioned in the preceding paragraph, or demanded the same or accepted the offer of the same.
The provisions of the first paragraph shall also hold good in respect of a person who has used his good offices or made solicitation or given encouragement with regard to the action as provided in the preceding two paragraphs.
Article 95. A person who, in connection with the election of members or reserve members of an income investigation committee or of members or reserve members of an income reinvestigation committee, has made house-to-house visits or interviewed individual electors one after another or conducted an election campaign by telephone, with the object of obtaining votes or enabling votes to be obtained or rendering the obtaining of votes impossible, shall be condemned to imprisonment for a term not exceeding one year or punished by a fine not exceeding 500 yen.
Article 96. The provisions of the proviso to Paragraph 3 of Article 38, Paragraph 2 of Article 39, Articles 40 and 41, Paragraph 2 of Article 48, Articles 63 and 66 of the Criminal Code shall not apply in respect of a person who has committed the offence mentioned in Paragraph 1 of Article 88.
Supplementary Provisions
Article 97. The present law shall be enforced as from April 1, 1940 (15th Year of Showa).
Article 98. The present law shall apply, beginning with the classified income tax for 1940 (15th Year of Showa), in respect of real property incomes, Class B incomes from dividends and interest, business incomes, Class B earned incomes, incomes from forests and Class B retirement incomes, or beginning with the composite income tax for 1940, in respect of the gross income of individuals.
Article 99. With regard to income tax on incomes of a juristic person for each business year which has ended prior to the enforcement of the present law and liquidation incomes accruing from a dissolution or merger, as well as income tax on second-class or third-class incomes, which was imposed or ought to have been imposed, or was collected or ought to have been collected prior to the enforcement of the present law, precedents shall be followed.
Article 100. The provisions of Article 8 shall not apply in respect of the amounts of money mentioned in Numbers 2 and 3 of the said article which accrue from a dissolution or merger prior to the enforcement of the present law.
Article 101. With regard to incomes mentioned below, the Government may, as prescribed by Ordinance, reduce or remit income tax, only in so far as (the income tax for) the year 1940 (15th Year of Showa) or 1941 (16th Year of Showa) is concerned, or create exceptions in respect to the calculation of the amount of incomes :
1. Incomes accruing from the property, businesses or occupations other than those continuing to be in possession during the period from January 1, 1939 (14th Year of Showa) to January 1, 1941 (16th Year of Showa) ; 2. Salaries, wages, annual allowances, compensation for expenses, annuities and pensions as well as allowances of the nature of those which have been referred to, other than those payment whereof is being continually received during the period from January 1, 1939 (14th Year of Showa) to January 1, 1941 (16th Year of Showa) ; 3. Incomes accruing from fishery enterprises.
Article 102. Bonuses or allowances of the nature of a bonus, which belong to Class B earned incomes, shall be calculated as Class B earned incomes for the year 1940 (15th Year of Showa), only in so far as the amount of incomes received after March 1, 1939 (14th Year of Showa) up to December 31 of the same year is concerned.
Article 103. With regard to classified income tax on Class A earned incomes, receivable up to July 31, 1940 (15th Year of Showa) after the enforcement of the present law, of a person whose third-class incomes for 1939 (14th Year of Showa) exceed 5,000 yen (based on an amount including those of the head of the house or members thereof living together), no deduction in virtue of the provisions of Paragraph 1 of Article 24 shall be made.
Article 104. Incomes mentioned in Number 2 of Paragraph 1 of Article 30, the date for payment whereof is prior to the enforcement of the present law, shall not be calculated as the gross incomes of individuals.
Bonuses or allowances of the nature of a bonus shall be calculated as the gross incomes of individuals for the year 1940 (15th Year of Showa), only in so far as the amount of incomes received after March 1, 1939 (14th Year of Showa) up to December 31 of the same year is concerned.
Article 105. Notwithstanding the provisions of Paragraph 1 of Article 21, classified income tax shall be imposed at the rate of 3 per cent for the time being on interest on national bonds which have been
deposited by savings banks in accordance with the provisions of Paragraph 1 of Article 9 of the Savings Bank Law.
Article 106. Of the gross incomes of individuals, the interest on public bonds, company debentures, deposits in banks and deposits as provided in Paragraph 2 of Article 21, as well as profits from the joint-operation-trust as prescribed by Ordinance, payment whereof is obtained within the area where the present law is in force, may be divided, for the time being, from other incomes on application by the person liable to tax and [thus] composite income tax on the same may be imposed at the rate of 15 per cent with the amount of interest or the amount of profit being regarded as the standard of assessment upon payment of interest or profit.
Composite income tax as provided in the preceding paragraph shall be collected by the payer upon payment of interest or profits and paid to the Government by the 10th of the following month.
The provisions of Article 74 shall apply with necessary modifications in respect of the case of the preceding paragraph.
The provisions of Paragraph 6 of Article 24 or Paragraph 6 of Article 25 shall not apply in respect of a person who is not subject to the imposition of composite income tax except that which is provided in Paragraph 1.
Article 107. The amount of income tax on second-class incomes and the amount of interest tax on capital, which a trust company has paid [to the Government] as previously prescribed in respect of the trust property comprising the joint-operation-trust which it has accepted, shall be deducted from classified income tax on the profits accruing from the said trust as prescribed by Ordinance.
Income tax on second-class incomes and interest tax on capital, which are to be deducted in the case of the preceding paragraph, shall be included in the calculation of the profits accruing from the joint-operation-trust concerned in the calculation of Class A incomes from dividends and interest.
Article 108. As for the members and reserve members of an income investigation committee and the members and reserve members of an income reinvestigation committee, precedents shall be followed up to July 31, 1940 (15th Year of Showa).
Article 109. A person who was punished in accordance with the provisions of Articles 74 to 76 of the Income Tax Law in force prior to its revisions or the provisions of Articles 28 to 30 of the Business Profit Tax Law in force prior to its revisions shall neither elect a member or a reserve member of an income investigation committee nor be elected a member or a reserve member of an income investigation committee, notwithstanding the provisions of Article 43, until five years shall have elapsed after the penalty was inflicted.
When a member or a reserve member of an income investigation committee has been punished in accordance with the provisions of Articles 74 to 76 of the Income Tax Law in force prior to its revisions or the provisions of Articles 28 to 30 of the Business Profit Tax Law in force prior to its revisions, he shall forfeit his office.
Article 110. Only in so far as the year 1940 (15th Year of Showa) is concerned, that which is referred to as "January 1" in Paragraph 1 of Article 24 and Paragraph 1 of Article 25 shall be "March 1," that which is referred to as "July 1" in Paragraph 6 of Article 24 shall be "August 1," that which is referred to as "March 15" in Paragraph 1 of Article 34 shall be "April 30," that which is referred to as "May 31" in Article 37 shall be "June 30," and that which is referred to as "from July 1 to July 31 of the year concerned" in Article 73 shall be "from August 1 to August 31 of the year concerned."
Article 111. No income tax shall be imposed on Buddhist establishments as referred to in Paragraph 1 of Article 35 of the Religious Organizations Law.