VIII Statistics
Tax Revenue and Budget
page 47

Taxation and Status ofTax Return Filing

page 48

Tax Examinations

page 49

Tax Criminal
Investigations

page 49

Reduction ofTax Delinquency

page 50

Remedy for Infringement
page 50of Taxpayer Rights

Budget and Actual Amounts of Tax and Stamp
Revenues for Fiscal 2005
Item

BudgetWithholding income tax
Self-assessed income tax
Corporation tax
Inheritance tax
Consumption tax
Liquor tax
Tobacco tax
Gasoline tax
Liquefied petroleum gas tax
Aviation fuel tax
Petroleum and coal tax
Motor vehicle tonnage tax
Customs duty
Tonnage due
OthersStamp revenue
Subtotal
Incom tax (transferred)
Local road tax
Liquefied petroleum gas tax (transferred)
Aviation fuel tax (transferred)
Motor vehicle tonnage tax (transferred)
Special tonnage due
General AccountTax Revenue andBudget

Crude oil customs duty, etc.

ActualMillion yen

Million yen

12,186,000
2,497,000
12,473,000
1,497,000
10,468,000
1,625,000
862,000
2,173,000
15,00089,000500,000
755,000
779,000
9,000—
1,114,000
47,042,000
1,115,900
311,800
15,00016,200377,500
11,30012,955,818
2,630,095
13,273,567
1,565,678
10,583,409
1,585,339
886,737
2,167,598
14,231
88,589493,126
757,420885,669
9,116
215
1,168,832
49,065,439
1,115,900
311,187
14,231
16,107
378,710
11,39538,00044,629355,100

359,249

740,800
226,200
50,249,800

740,800
232,855
52,290,502

Tax Consultations

page 51

Power resources development
promotion tax
Gasoline tax
Special tobacco tax
Total

International Taxation

page 51

Note: “Others” include the tax delinquency currently being handled of the goods andservice tax, land value tax and so forth.

Taxpayer Satisfaction

page 51

NTA Budget for Fiscal 2007
ItemBudget

Note: The time periods for the figure are described in the title section
on the top right of each table. A fiscal year is the one-year period
from April 1 through March 31 of the following year. A businessyear is a one-year period starting July 1 of the given year andending on June 30 of the following year. A calendar year is theone-year period from January 1 through December 31.

General Expenditures

Million yen

IT-related Expenses
Expenses to improve convenience for taxpayers*1Expenses related to internationalization measures
Expenses to improve work environment*2
Expenses related to tax reforms
Expenses for various taxation forms andcommunication expenses
General operating expenses*3
Expenses for National Tax College
Expenses for National Tax Tribunal
Expenses for National Research Institute of Brewing
Subtotal
Personnel expenses

48,382
12,353
871
7,048
3,442

46,843
2,886
446
1,222
141,280
583,181

Total NTA budget

724,461

17,788Notes: *1 “Expenses to improve convenience for taxpayers” include expenses related
to touch-screen computers and the development of e-Tax and the Filing
Assistance on the NTA Website.
*2 “Expenses to improve work environment” include expenses to improve
facilities and health care expenses.
*3 “General operating expenses” include wages for part-time workers, travel
expenses, honoraria for hired bookkeeping instructors, and PR expenses.

47

Taxation and Status of Tax Return Filing
Income Taxpayers

Inheritance Tax(2006 calendar year)
Thousand persons(2005 calendar year)

1,083,796

Number of deceased persons

45,152

Total population

127,760

Number of deceased persons subject to taxation

Workforce

63,560

Number of heirs subject to taxation

Number of final returns for income tax*

23,490Taxable amount

10,195,200 Million yen

12,250

Amount of tax

1,156,700 Million yen

Refund*135,8038,230

Tax payment*
Business income earners

1,900

Other income earners

6,330

Detail by income
earner category

Real-estate
income earners

1,110

Employment
income earners

2,740

Miscellaneous
income earners

2,120

Gift Tax(2005 calendar year)

405,332

Number of persons subject to taxation

2,376,000 Million yen

Value of property acquired

115,900 Million yen

Amount of tax

Note: The data above is under taxation system for settlement at the time of inheritance.

350

OthersConsumption Tax(2005 fiscal year)

Notes: “Total population” and “workforce” represent the figure as of fiscal 2005.

Withholding Agents and Withholding Income Taxation(2005 business year)
Income Classification, etc.

Number ofWithholding
Agents*Amount ofTax

Thousands

Million yen

Number ofReturns

Tax Payment

Tax Refund

Thousand cases

Thousand cases

Individual

1,566

50

Corporation

1,991

116

3,557

165

Total
Amount of tax

10,026,500 Million yen 2,181,400 Million yen

3,860 10,540,700

Employment income (wages and salaries)
Retirement income—291,100

Interest income, etc.

40488,000

Dividend income
Capital gains etc. from selling listed shares
managed in special accounts
Income from remuneration, etc.

1292,496,600

5254,800

3,083

1,340,600

Income paid to non-residents and foreign
corporations

24

316,100

Total—

15,727,900

Liquor Tax and Liquor Production(2005 fiscal year)
Classification

June 2006.

Number of Corporations and Number ofCorporation Tax Returns Filed(2005 business year)

Million yen

Sake

499

91,760Sake compounds

34

5,013

1,042

227,042

Shochu2,977

Thousands

Number of tax returns filed

2,767

Thousands

Percentage of corporations filing

89.9%

Percentage of returns declaring a surplus

31.9%

Amount of self-assessed income

50,397,400

Million yen

Amount of self-assessed loss

22,715,400

Million yen

Amount of tax

12,596,900

Million yen

Notes: The number of corporations represents the figures as of the end of June 2006.

Beer

86

2,353

3,650

800,426

Fruit wines

94

6,711

Whiskies

69

27,726

Spirits76

7,630

Liqueurs

742

63,451

2,737

297,497

9,029

1,529,609

Miscellaneous liquors
Total

Statistics

Number of corporations*

Amount of Tax

Thousand kl

Mirin (rice cooking wine)

Notes: The number of withholding income agents represents the figure as of the end ofProduction Volume48

Tax Examinations
Examinations for Self-Assessed Income Tax

Examinations for Consumption Tax(2005 business year)
Number ofCases
Fieldexaminations

Thousands(2005 business year)

Total
Understated Total Additional
Additional Tax
Understated Income per Tax Revenue Revenue Collected
IncomeCollectedper Case
CaseMillion
yenThousand
yenMillion
yenThousandyen

Special,*1
General54454,300

8,350

90,7001,670

Focusing*2

169

336,100

1,980

15,90090

Brief contact*3

583

105,300

180

7,700

10Total807

895,700

1,110

114,400

140

Notes: *1. “Special, General” refers to the focused examination for the malicious
taxpayer.
*2. “Focusing” refers to the short term examination to grasp the understatedincome.
*3 “Brief contact” refers to the correction of tax return errors by speaking with thetaxpayer by telephone or by asking the taxpayer to visit the Tax Office.

Number ofCases

Number of Cases withUnderstated Income

Total Additional
Tax Revenue
Collected

Additional
Tax Revenue
Collected perCase

Thousands

Thousands

Million yen

Individuals

72

49

22,000Thousand yen

300Corporations

13573

55,100410

Field Examinations for Inheritance Tax(2005 business year)
Number ofCases

Number ofCases withUnderstated
IncomeTotal
Additional of
UnderstatedInheritanceThousands

Thousands

1412

Examinations for Withholding Income Tax

UnderstatedInheritance
per Case

Total
Additional
Additional Tax Revenue
Tax Revenue Cases perCollected
Case

Million yen Thousand yen

Million yen Thousand yen

388,200

27,30086,4006,080(2005 business year)
Number of Cases
Examined

Of Which, Number ofIllegal Cases

Total Additional Tax
Revenue CollectedThousands

Thousands

Million yen

1945358,000

Information Returns Collected(2005 business year)
Number ofReturns Collected

Name of Information under Mandatory Submission

Thousands

Field Examinations for Corporation Tax(2005 business year)
Numberof Cases

All corporations

Total
Understated Total Additional
Understated Income per Tax Revenue
Collected
Case
IncomeMillion yen

Thousandyen

Million yen

143 1,665,400

11,636395,300

Thousands

Of which,
corporations
handled by theLarge Enterprise
Examination
Department

5897,700

19,428

Withholding record of employment income

199,088

201,100

594

Payment record of interest and others
Payment record of dividend, distribution of surplus
and interest on guaranty capital

4,061

Withholding record of public pension, etc.

31,643

Payment record of remunerations, fees,contract payments, and prizes

9,174

Payment record of consideration for transferof stocks, etc.

10,592

Record of remittance to foreign countries

3,208

Others36,770115,470

Total

Tax Criminal Investigations
Tax Criminal Investigations

Prosecuted Cases by Tax Item(2006 fiscal year)

Numberof Cases
Conducted

231

Numberof Cases
Closed221

Numberof Cases
Prosecuted

166

Total Tax
EvasionTax Evasion
per Case

Total Tax
Evasion (inProsecutedCases)

Tax
Evasion per
Prosecuted
CaseMillion yen

Million yen

Million yen

Million yen30,400

138

27,800167

Large-Scale Cases(2006 fiscal year)

49

Number of Cases
Prosecuted

Of Which, Number of Cases
Prosecuted with a Tax Evasion
Amount of 300 Million Yen or More

Of Which, Number of Cases
Prosecuted with a Tax Evasion
Amount of 500 Million Yen or More166

178(2006 fiscal year)
Tax Item

Number ofCases

Total TaxEvasion

Tax Evasion
per Case

Million yenMillion yen

Income tax

59

10,800183

Corporation tax

78

11,900153

Inheritance tax

52,900580

Consumption tax

23

2,100

91

Withholding income tax

1100100

Total

166

27,800167

Reduction of Tax Delinquency
Tax Delinquency Cases of 100 Million Yen or More by Industry

Seizure of Property(as of the end of the 2006 fiscal year)
Industry

Number of Persons%Million yen

Number ofDelinquent
Taxpayers%

Manufacturing industry

64

4.4

13,1803.3

Distribution industry

99

6.7

43,262

10.8

Real estate and construction industry

395

26.9

96,49524.1

Food and beverage industry

82

5.6

15,765

3.9

Financial industry

24

1.6

6,717

1.7

Other industries*1

377

25.7

97,055

24.2

Others*2

427

29.1

128,677

32.0

1,468

100.0

401,151

100.0

Total(2005 business year)

Amount of Tax

Numberof Objects
SeizedAppraisalValue
Million yen

427

14,783

7,574

Claims42,78653,93861,208

Immovable property, etc.

7,747

27,481

151,130

Others3,514

102,981

4,005

54,474

199,183

223,917

Movable property

TotalNotes: *1“Other industries” includes hospitals (doctors), the service industry, and theleisure industry.
*2 “Others” includes salaries workers and pension recipients.

Remedy for Infringement of Taxpayer Rights
Requests for Reinvestigation
Number ofIllegal Cases
Classification

Number ofRequests for
Reinvestigation(1)Number of New
Requests for
Reinvestigation(2)

Percentage[(2)/(1)]Thousands

Tax collection
Total

Number ofRequests
Approved(3)(4)

Percentage[(4)/(1)]

%

478
—
—

Tax assessment

Numberof Cases
Processed

5,117
609
5,726

3,935
566
4,501

0.82
—
—

4,065
484
4,549

604
14618

Percentage[(4)/(3)]%%0.13
—
—

14.86
2.89
13.59

Requests for Reconsideration

Classification

Number of
Illegal Cases(1)

Number of
Number of New
Requests for
Requests for
Reconsideration Reconsideration(2)

Percentage[(2)/(1)]Thousands

478——

Tax assessment
Tax collection
Total

Numberof Cases
Processed

Number ofRequests
Approved(3)(4)

Percentage[(4)/(1)]

%

5,034
368
5,402

2,730
233
2,963

0.57
—
—

2,920
247
3,167

464
6470

Percentage[(4)/(3)]
%%

0.10
—
—

15.89
2.43
14.84

Requests for Litigation
Classification

Number ofIllegal Cases

Number ofLitigation
Cases

(1)
Thousands

Tax assessment
Total

(3)

Number of Lost
in Litigation andPartial Defeat
Cases
(4)

%

868
132
1,002

131
48
180

0.03
—
—

469
89
559

48
352

Percentage[(4)/(1)]Percentage[(4)/(3)]
%%

0.01
——

10.23
3.37
9.30

Notes: 1. “ (1) The number of illegal cases” represents the total of illegal cases identified in field examinations in the fiscal 2005 in terms of self-assessed income tax (including capitalgains), withholding income tax, corporation tax, consumption tax and inheritance tax.
2. The “Number of Requests for Reinvestigation” and the “Number of Requests for Reconsideration” are the figures for the 2004 fiscal year.
3. The “Number of Litigation Cases” is the total number of litigation cases for each level of trial for the 2004 fiscal year.
4. The “Total” Number of Litigation Cases includes the cases for National Tax Tribunal and Regional Tax Tribunals

Statistics

Tax collection

478——

Number ofCases Closed

Number of the First Instance
Newly Filed
Percentage(2)[(2)/(1)]50Tax Consultations
Number of Tax Consultation Cases Handled byTax Counsel Offices and via Tax Answer System

The Five Most Frequent Tax Consultation Topics
In-Person and Telephone Consultations(2006 fiscal year)
Number of Tax Consultations

Thousand cases(2006 fiscal year)
Ranking

Tax Item

Topic
Thousandcases

1,501

Income tax
Corporation tax

233

Property tax

686

1

Income tax

Obligation to file returns andfiling procedures, etc.

285

Consumption tax

90

2

Income tax

Medical expenses deduction

159

Other indirect taxes

61

3

Income tax

117

Tax collection

94

Preparation of tax returns, statementsof accounts, and other forms

Others296

4Income tax

Special credit for loans relating to adwelling

117

Subtotal

2,961

Tax Answer System

38,293

5

Income tax(Special) exemption for spouse, andexemption for dependents

98

Total

41,254

Tax Answer System

Number of Complaints Received at Tax Counsel Offices(2006 fiscal year)(2006 fiscal year)
Ranking

Tax Item

Topic
Thousandcases

Income tax

549

Corporation tax

336

Property tax

65

Consumption tax

49

1

Income tax

Cases in which funds are spent on
medical expenses(medical expenses deduction)

2

Income tax

Tax rate of income tax

958
740

15

3

Income tax

Medical expenses subject to medicalexpenses deductions

Tax collection

41

4

Income tax

Tax return filing

570

Others333

5

Income tax

Exemption for dependents

516

Total

1,388

Other indirect taxes

International Taxation

Taxpayer Satisfaction(2005 business year)Fraudulent Income Made through Overseas Transactions(2005 business year)
Number of cases of fraudulent overseas income
Amount of fraudulent income made overseas

78Itemcases

High Satisfaction
Rate%

8,300 Million yen

Notes: The data represent figures of corporations for which the NTA’s Large Enterprise

Attitude of officials in providing services

78.9

Examination Division is responsible (i.e. corporations capitalized at ¥100 million or

Level of convenience in using Tax Office

56.3

Evaluation regarding PR activities

70.7

Evaluation regarding activities to collect public
opinions

78.3

more).

Status of Transfer Pricing Taxation(2005 business year)
Number of cases closed119cases

Level of satisfaction with consul- In-person
tations at Tax Counsel Offices
Telephone

91.6
67.4

283,600 Million yen* “High Satisfaction Rate” is the percentage of respondents giving high evaluations

Notes: The data represent figures of corporations for which the NTA’s Large Enterprise(“good” or “somewhat good” on a five-grade scale between “good” and “bad”) in a

Amount of taxable income

Examination Division is responsible (i.e. corporations capitalized at ¥100 million ormore).

511,240

questionnaire survey.