The clarification of Penalty regarding filing Consumption Tax returns

Wednesday, December 28, 2011. 13:48

The penalty concerning the following willful conducts to avoid filing consumption tax is clarified and added into the consumption tax law. A penalty will be imposed on:

  • Taxpayer who attempts or fails in attempt to get refund of consumption tax illegally; or
  • Taxpayer who willfully forges facts and circumstances to avoid filing consumption tax returns.

Taxpayers who willfully and intentionally violate their known legal duty of voluntarily filing consumption tax returns by deadline can be punishable up to 5-year imprisonment or by a fine up to 500 million yen, (or otherwise both of these two penalties).

The penalty rule will take effect and be imposed on violations occurred from the day after two months counting from the promulgation date (June 30, 2012).

Reference: Consumption tax law article 64.

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