Japan Tax Guide

Tax Investigation

Creation date2018/03/23 Last updated2021/10/14


Question: How is the tax investigation performed in Japan?

Answer: Under tax investigation, tax office investigates the tax return submitted by the taxpayers to check whether it is correct or not, and in case of errors, they are forced to revise the tax return.

The purpose of investigation is to maintain fair taxable transaction regarding individual income tax, corporate income tax, and consumption tax.

Tax investigation has two types such as voluntary investigation and forced investigation.Voluntary investigation shall be under taken by tax officer with the agreement of tax payer in accordance with General Law of National Taxes.On the other hand, when fraud or tax evasion are suspected, tax officer investigates without the agreement of tax payer.

The tax investigator undergoes proper investigation in accordance with certain processes. ; they investigate the  tax payer’s office, their customers and bank transactions of tax payers. Through the tax investigation, they clarify the tax payer’s transactions in terms of cash flow, sales, stocks, and expenses. The targets of tax investigation are determined based on industry and financial performance. In response to the size of the company, the tax office tends to decide how many days (from a few days to several months) and how often (from every year to each few years) they investigate the company.

As a general rule, tax payers are bound to accept tax investigation. However, certified tax accountant is allowed to attend the investigation on behalf of the client.  In case doubt or error are found on the tax return, tax payers have to file the revised tax return to tax office before the deadline or scheduled payment  and settle  the balance between the former tax and the revised tax with additional tax including penalty taxes.

For more detail, please feel free to contact TOMA Consultants Group.

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Question: 日本では、どのように税務調査は行われますか?

Answer: 税務機関が納税者の申告内容が正しいかどうかをチェックし、誤っている場合に是正を求める調査です。