National Tax Collection Act（Extract）

(Act No. 147 of April 20, 1959)

Chapter I General Provisions

(Definitions) Article 2

(ix) "Delinquent taxpayer" means a taxpayer who fails to pay the national tax that the taxpayer is required to pay by the due date for payment (excluding due dates extended under a tax payment grace period as prescribed in Article 47, paragraph (1) (Tax Payment Grace Period) of the Act on General Rules for National Taxes, and due dates extended under a grace period for collection or execution of collection procedures due to tax delinquency);

(x) "Statutory due date for tax payment" means the due date for payment of national taxes under the provisions of laws concerning national taxes (in the case of the following national taxes, meaning the due dates or the days specified respectively therein); however, due dates advanced as prescribed in Article 38, paragraph (2) (Advanced Demand) of the Act on General Rules for National Taxes, due dates extended by postponement of tax payment under the provisions of the Income Tax Act (Act No. 33 of 1965) or the Inheritance Tax Act (Act No. 73 of 1950), due dates extended under a tax payment grace period as prescribed in Article 47, paragraph (1) of the Act on General Rules for National Taxes, and due dates extended under a grace period for collection or execution of collection procedures due to tax delinquency shall not be regarded as the due date for payment of said national tax: (a) National tax to be paid under the provisions of Article 35, paragraph (2)

(Payment with Return After Due Date, etc.) of the Act on General Rules for National Taxes: the due date for payment of the national tax in the case where the provisions of laws concerning national taxes are applied by deeming the amount of national tax to be paid as the amount recorded in a return form filed by the due date prescribed in Article 17, paragraph (2) (Return Filed by the Due Date) of said Act pertaining to the national tax;

(b) National tax (excluding a national tax which falls under (c) or (d)) for which the notice of tax due is given after the day designated as the due date for payment of the national tax pursuant to the provisions of laws concerning national taxes: said due date;

(c) National tax subject to the official assessment system that is to be collected immediately upon the occurrence of a certain event pursuant to the provisions of laws concerning national taxes: the day on which said

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event occurs; (d) Supplementary tax or collection expenses for delinquent tax: the due date

for payment of the national tax that was the cause for payment or collection of such supplementary tax or expenses (if said national tax falls under any of (a) to (c), the due date or day listed respectively in (a) to (c) pertaining to said national tax (in the case of additional tax for understatement, additional tax for failure to file, or heavy additional tax as prescribed in Article 35, paragraph (3) (Payment of Additional Tax for Understatement, etc.) of the Act on General Rules for National Taxes pertaining to land value tax, the earlier due date)).

(Requirements for Grace Periods for Asset Conversion)

Article 151 (1) Where a delinquent taxpayer is found to fall under any of the following items and he/she is found to have a sincere intention to make tax payments, the district director of the tax office may grant a grace period for the conversion of his/her assets into cash through collection procedures due to tax delinquency with regard to the national tax payable by the delinquent taxpayer (excluding a national tax subject to the provisions of Article 46, paragraph (1) through paragraph (3) (Tax Payment Grace Period) of the Act on General Rules for National Taxes); provided, however, that such grace period shall not exceed one year: (i) Where the taxpayer is likely to face difficulty in continuing his/her business

or maintaining his/her standard of living if his/her assets are converted into cash immediately;

(ii) Where the granting of a grace period for the conversion of the taxpayer's assets into cash is more beneficial to the collection of the delinquent national tax and national taxes to be paid in the near future than the immediate conversion of his/her assets into cash.

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