NATIONAL TAX AGENCYREPORTNATIONAL TAX AGENCYFrom the Commissioner
The environment surrounding the tax administration is fundamentallychanging due to the advance in globalization and digitalization of theeconomic society, etc. Even under such unprecedented situation, theNTA needs to firmly fulfill the mission of “helping taxpayers properly andsmoothly fulfill their spontaneous tax duties.”
To respond to the Covid-19 pandemic as well, usage of digital is rapidly
expanding in all areas including tax administration in recent years.
If usage of digital further expands in the tax system, it is expected it
would help taxpayers not only in terms of simplification of tax procedures
but also in terms of improved accuracy through prevention of simple errors
as well as improved productivity through better operational efficiency, etc.
In addition, for the tax authorities, too, we believe we would be able tofurther improve efficiency and realize sophistication of the taxation and tax
collection operations, through improved efficiency in operational processing
and using the obtained data.
Thus, in June 2023, we released “Digital Transformation for Tax
Administration: Future Vision of Tax Administration 2023,” which was arevision of the “Future Vision of Tax Administration 2.0” released in 2021,
for demonstrating that we will further promote DX for tax administration.
Towards the future vision of realizing a “society where all tax procedures
can be performed without going to a tax office,” we will comprehensively
review our services for taxpayers (such as improved convenience by using
e-Tax, etc. and provision of more consultation channels) from the viewpointof taxpayers perspective. Going forward, e-Tax and cashless payment will
become more convenient, so we would appreciate it if you use them.
The Invoice System for consumption tax will take effect in October 2023.
For the smooth introduction of the Invoice System, each business
operator needs to deepen the understanding of the system and deal
with and prepare for the system in accordance with the real status ofeach business operation. To help such endeavors, we have taken various
measures as follows through collaboration with relevant ministries andagencies: send lecturers to and conduct explanatory sessions for relevantbusiness associations, etc.; conduct enlightening PR activities using various
media, etc. In addition, a range of burden-mitigating measures will be
implemented in accordance with the tax system revision for FY2023.
There will be only some more months before the system takes effect.
Until then, we will keep striving to provide business operators withnecessary information including those on the tax system revision as wellas to do our best to respond to individual consultation requests, using all
opportunities.
1

NATIONAL TAX AGENCY REPORT 2023

Regarding the efforts to realize appropriate and fair taxation and tax
collection, we strive to protect the rights and interests of taxpayers as wellas to take rigorous measures across the organization against malicious
taxpayers not to make the taxpayers who have ﬁled tax returns and paid
taxes adequately feel unfair. Particularly, we proactively address thefollowing as priority issues: wrongful request for refund of consumption
taxes, cross-border avoidance of tax payments, etc.
Regarding these points, we strive to further ensure appropriate execution,
as consumption tax is one of the major tax items in terms of the size oftax revenue and people of the country have high awareness of the tax.
Particularly, regarding the cases of wrongfully trying to obtain refund
through false tax returns, we endeavor to properly respond to the casesthat are getting more complicated and sophisticated, with a strict stanceagainst them.
In addition, as for overseas investment and overseas transactions on therise, we implement in-depth investigations and ensure adequate collection
through information exchange and collaboration with the tax authorities offoreign countries.
Also, we strive to ensure higher efficiency in and sophistication of taxationand tax collection by using various data, for appropriately responding to
the incessant changes in economic activities in line with the digitalization of
economic society.
Through such various measures, we will further ensure that taxpayers
properly and smoothly submit tax returns and pay taxes. These measures
can be smoothly implemented only when taxpayers understand them andcooperate with us.
This National Tax Agency Report provides taxpayers with easy-tounderstand descriptions on the annual activities of the NTA and relevant
topics, using statistical materials, charts, photos, etc.
We would be happy if this report, the “National Tax Agency Report 2023,”
helps you better understand tax administration.
June 2023

Sakata Wataru
Commissioner of the National Tax Agency, JapanNATIONAL TAX AGENCY REPORT 2023

2

CONTENTS
From the Commissioner‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥

Ⅰ About the NTA1
5

1 Organizational Philosophy of the NTA･････････ 5
２ Digital transformation for tax administration･･･ 7⑴ General remarks･･･････････････････････････････････････････ 7⑵ Status of the initiatives concerning“improvement in convinience for taxpayers”･･･ 7⑶ S tatus of the initiatives concerning “improvementof efficieny in and sophistication of taxationand tax collection”････････････････････････････････････････････ 8⑷ Promotion of digitalization at business operators･････ 8

3 Thoughts on management of tax administration････ 8⑴ Enhancement of services for taxpayers･･････････ 8⑵P romotion of administrative work efficiency andenhancement of organizational foundations･･････････ 9⑶P roper and fair taxation and collection andremedy for taxpayer rights･･････････････････････････････ 9⑷ Proper management of liquor administration･･････ 9⑸P roper administration of services by Certified･･･････････････････････ 9
Public Tax Accountants（CPTAs）⑹ Results evaluation (Evaluation of Policies)
and improvement of tax administration･･････････ 9

4 Overview of the national tax organization････ 10⑴ National revenue and taxes･････････････････････････ 10⑵ NTA budget････････････････････････････････････････････････ 10⑶ Organizational structure and number of
personnel of the NTA･･････････････････････････････････ 11

Ⅱ Efforts for Enhancement of Services for Taxpayers and Efficiency of Tax Administration 12
1 e-Tax (Online national tax return filingand tax payment system)････････････････････････････ 12
Column1 Measures for improving the convenienceof e-Tax･･････････････････････････････････････････････ 13

2 Filing for tax return･･････････････････････････････････････ 14⑴ Promotion of filling by e-Tax at home･･･････････

14⑵ Response to diverse taxpayer needs････････････ 15

3 Promotion of cashless payment･････････････････ 16⑴ Cashless payment methods･････････････････････････ 16⑵ Payment methods other than cashless･････････ 17

4 Efforts towards My Number System･･････････ 18⑴ Outline of My Number System･････････････････････ 18⑵A ctions as the entity utilizing My Numbers andCorporate Numbers･･･････････････････････････････････････ 18⑶ Promotion of popularization of My Number Card･･･ 19⑷ Actions as the entity assigning Corporate Numbers･･･ 19

5 Promoting digitalization of administrative services･･･ 20
Column2C enter-based system for internal
administrative tasks･ ･･････････････････････････ 21

Column3 Creation of a new category for exam

(National tax expert B [science,engineering, and digital course])･････････ 22

6 Providing information, etc.･･････････････････････････ 23⑴ The NTA website････････････････････････････････････････ 23⑵ Tax education･････････････････････････････････････････････ 25⑶ Lectures･･････････････････････････････････････････････････････ 26⑷ Briefings for taxpayers･････････････････････････････････ 26⑸ Tax consultation･ ････････････････････････････････････････ 26⑹ Advance inquiries････････････････････････････････････････ 28
Column4NTA’s response to the Covid-19 pandemic��� 28

7 Proper withholding tax system operation････ 29
8 Actions for the amended Consumption Tax Act････ 29⑴ Invoice system for consumption tax･････････････ 29（Retention of eligible invoices, etc.）⑵ Measures for smooth and appropriate
shifting of consumption taxes･･････････････････････ 29

9 Cooperation with private organizations････ 30

Ⅲ Proper and Fair Taxation and Collection
1 Promotion of proper and fair taxation･･･････ 31⑴ Priority matters addressed in the tax
examinations･･････････････････････････････････････････････ 31⑵ Utilizing approaches other than field
examinations･･････････････････････････････････････････････ 33⑶ Data and Information･･････････････････････････････････ 34⑷ Criminal investigation･･････････････････････････････････ 34

3

NATIONAL TAX AGENCY REPORT 2023

31

2 Ensuring tax payment･･････････････････････････････････ 36⑴ Establishment of voluntary tax payment･･･････ 36⑵ Efforts to promote reduction of tax delinquency････ 36⑶ The Office of Tax Collections Call Center･････ 38⑷ Public auctions････････････････････････････････････････････ 38⑸ Accurate and efficient management ofclaims and liabilities････････････････････････････････････ 39

4 Addressing international transactions･ ･･････ 42⑴ Background････････････････････････････････････････････････ 42

Remedy for Taxpayer Rights

⑴ Request for re-examination･･････････････････････････ 53⑵ Request for reconsideration･････････････････････････ 53⑴ Situation of domestic market･･･････････････････････

55
55⑵ Situation of the Japan-made liquor exports････ 56

2 Efforts of the NTA････････････････････････････････････････ 56⑴ Efforts for cultivating overseas markets････････ 56

3A ppropriate guidance for and supervisionof CPTAs････････････････････････････････････････････････････････ 61

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Statistics

60⑴ Promotion of the document attached by CPTAs･･･ 60⑵ Promotion of e-Tax usage････････････････････････････ 61

Results Evaluation（Evaluation of Policies）

⑴ The purpose of Results Evaluation･･･････････････ 62⑵ The NTA’s missions and assignment andthe structure of results evaluation targets････ 62

LiquorAdministration

2C
 oordination and cooperation with CPTAs’
Associations, etc.･･･････････････････････････････････････････ 60

Ⅷ⑵ E fforts to inscription of Japanese sake, shochu, andawamori, etc. on the Representative List of theIntangible Cultural Heritage of Humanity of UNESCO.･･･ 57⑶ Technological assistance･････････････････････････････ 58⑷ Measures for small and medium enterprises････ 58⑸E stablishment of a fair trading environmentof liquor･･････････････････････････････････････････････････････ 58⑹ Response to social demands･･･････････････････････ 58

Ensuring Proper Administration of Services by CPTAs

1 Services and roles of CPTAs･･･････････････････････ 60

Ⅶ⑶ Litigation･････････････････････････････････････････････････････ 53⑷ Trend in remedies for taxpayer rights･･･････････ 54

Liquor Administration

1 Situation of Liquor Industry･････････････････････････ 55

Ⅵ

52

Remedy for
Taxpayer RightsⅤ⑴ Technical cooperation for developing countries････ 49⑵ Other technical assistance･･･････････････････････････ 51⑶C ooperation among countries for tackling thechallenges in tax administrations･･････････････････････ 51

Proper and Fair
Taxation and CollectionⅣ

5 Cooperation with foreign tax authorities････ 49

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration⑴ Background････････････････････････････････････････････････ 39⑵ Status quo of fraudulent refund of
consumption tax･････････････････････････････････････････ 39⑶ Our initiatives against fraudulent refund of
consumption tax･････････････････････････････････････････ 40① Enhancing the assessment for refund returns･ ･･ 41② Enhancing the onsite examinations･･･････････ 41③ Enhancing the organizational structure･････ 42⑵A ctions against international tax avoidance･ ･･ 42① Enhancement of information resources････ 42② Enhancement of human resources for examination･･･ 46③R einforcement of global networks･ ･･････････ 46⑶A ctions against the affluent class and corporations
that conduct cross-border transactions･･････････････････ 48

About the NTA

３ Response to fraudulent refund of
consumption tax･･････････････････････････････････････････ 39

62⑶ Evaluation method for Results targets,
etc. and evaluation results･･･････････････････････････ 62

64○ Delinquency････････････････････････････････････････････････ 66○ Criminal investigation･･････････････････････････････････ 66○ Remedy for taxpayer rights･･････････････････････････ 67○ Tax consultations････････････････････････････････････････ 67

Statistics○ Tax revenues and budget････････････････････････････ 64○ Tax returns and taxation･ ････････････････････････････ 64○ Tax examinations････････････････････････････････････････ 65○ International taxation･･････････････････････････････････ 66※The fiscal year ranges from April 1 through March 31 of the following year (i.e. fiscal year 2023: April 1,
2023 to March 31, 2024), while the operation year is from July 1 through June 30 of the following year
(i.e. operation year 2023: July 1, 2023 to June 30, 2024).

NATIONAL TAX AGENCY REPORT 2023

4

Ⅰ About the NTA
The NTA was organized in 1949 as an external organization of the Ministry of Finance. The
NTA supervises 12 Regional Taxation Bureaus (including the Okinawa Regional Taxation
Office, and the same applies hereinafter) and 524 Tax Offices throughout Japan.
There is also the National Tax College which trains tax officials, while the National
Tax Tribunal serves as a special body engaged in examining requests for review from
taxpayers.

1

Organizational Philosophy of the NTA

The Mission of the NTA is “to help taxpayers properly and smoothly fulfill their tax duties.”
In order for the NTA to fulfill the mission, our duty to carry out is “Realizing proper and fair taxationand collection of internal taxes,” “Sound development of the liquor business,” and “Ensuring proper
administration of services by Certified Public Tax Accountants (CPTAs),” provided by Article 19 of the Act
for Establishment of the Ministry of Finance.
In order for the NTA to fulfill the “mission” and “duties,” we compiled “future vision as an organization,”
which indicates what organization we aim for while managing the organization, as well as “codes ofconduct,” which indicates important standards and values for each tax official to perform duties. These
are declared to tax officials and announced to the public as the “Organizational Philosophy of the NTA.”NTA

5NATIONAL TAX AGENCY REPORT 2023

About the NTA

Organizational philosophy of the NTA

Duty

 Realizing proper and fair taxation and collection ofinternal taxes
 Sound development of the liquor business

Proper and Fair
Taxation and Collection

To help taxpayers properly and smoothly fulfill theirtax duties.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Mission Ensuring proper administration of services by Certified
Public Tax Accountants (CPTAs)

An organization that supports the nation's
finance with trust

Remedy for
Taxpayer Rights

Future vision as
an organization

 An organization that flexibly copes with changes in the economic society,improves taxpayer convenience and continues to progress.

LiquorAdministration

 An organization that makes taxation and collection more efficient andsophisticated and conducts strict and appropriate examinations anddisposition for delinquent tax while cooperating with a wide variety of
relevant persons.

Codes ofconduct

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs An organization that is vibrant and open, respects the diversity of each
official and provides high performance as a team.

Tax professionals who take on a difficult
challenge holding the mission to heart Keep secrets associated with duties and maintain disciplines. Neverforgive frauds and carry out duties in a fair and honest manner.
 Constantly review duties with a sense of participation and challenging
spirit and make administrative duties more efficient and sophisticated.

NATIONAL TAX AGENCY REPORT 2023

Statistics

 Strive to acquire expertise and skills and demonstrate our abilities tothe fullest.

6

Ⅰ

About the NTA

2Digital transformation for tax administration⑴ General remarks
The NTA released “Digital Transformation for Tax Administration: Future Vision of Tax Administration
2.0” (https://www.nta.go.jp/about/introduction/torikumi/digitaltransformation/index.htm [in Japanese])(hereinafter “Future Vision 2.0”) in June 2021, to clarify our policy for handling the “fundamental reviews ofnational tax-related procedures and TO BE status of relevant operations using digital (digital transformation
for tax administration)” (hereinafter “DX”).
In June 2023, Future Vision 2.0 was revised, for demonstrating that we will further promote DX for tax
administration, in accordance with three pillars: that is, two earlier pillars (“improvement of convenience
for taxpayers” and “higher efficiency in and sophistication of taxation and tax collection”) plus a newpillar “promotion of digitalization by business operators” (Digital Transformation for Tax Administration:
Future Vision of Tax Administration 2023 (https://www.nta.go.jp/about/introduction/torikumi/digitaltransformation2023/index.htm [in Japanese])).
Digital Transformation for Tax Administration:
Future Vision of Tax Administration 2023

Digital Transformation for Tax Administration: Future Vision of Tax Administration 2023
 We will promote digital transformation for tax administration (that is, fundamental reviews of national tax-related procedures and TO BE statusof operations) such as digitalization of tax procedures and data usage in operations.

 We will promote DX for whole society starting from taxation, through facilitating digitalization for operations of business operators.
We will contribute to society from the perspective of “DX promotion for whole society” as well, in addition to the perspective of “realizationof proper and fair taxation and collection.”

Future vision of tax administration
Realization of
TO BE status oftax procedures
Building an easyprocedure-applied
environment using
digital tools usedordinarily

Improved convenience for taxpayers＜Thorough application of “taxpayer perspectives”＞
Simpliﬁed procedures for tax ﬁling (payment
and refund) and year-end adjustments
Simpliﬁed procedures for application, etc. /online conﬁrmation of own information
Improvement in searchability /sophistication of consultation

A society where alltax procedures canbe completed
without going toa tax oﬃce

Eﬃciency improvement in and sophisticationof taxation and tax collection operations＜Thorough application of “data usage”＞

Performancemaximization as
an organization

Eﬃciency improvement in and sophistication of
taxation and tax collection（Usage of AI and data）（Usage of online tools, etc.）

Particular emphasis
placed on highly
needed areas andmalicious cases

Digitalization of inquiries to related agencies, etc.

Usage of taxation data for academic research purposes※Usage of taxation data other than those on “taxation and tax collection operations”

Proper taxation of
consumption tax

Promotion of digitalization at business operators
Dissemination of and PR on
digital-related measures

Collaboration with otherministries and agencies

Tax avoidance
Proper taxation on
the wealthy class

Collaboration with relevant
associations, etc.

Large-lot cases andmalicious cases

Contribution to society not only from the perspective of “realization of proper and fair taxation and collection” but also from the perspective of “DX promotion for whole society”＊ We will do our best to ensure adequacy in handling taxpayer information and information security.
＊ We will aim to provide eﬃcient and easy-to-use services for all taxpayers including those who are not dexterous in handling digital.
＊ Towards realization of the future vision, we will carry out the following: “realize center-based system for internal administrative tasks;” sophisticate the systems; and improve the infrastructure(personnel development, etc.).

⑵S tatus of the initiatives concerning “improvement in convenience for taxpayers”
We will aim to build an environment that enables even those who are not familiar with tax to carry out
procedures easily and conveniently using a digital tool used ordinarily (smartphone, tablet, PC, etc.). As
such, we will pursue various measures, more treasuring the “taxpayer perspectives” than ever.
As an approach for that, we set an assumed typical model of taxpayer (persona), to obtain a bird’s
eye view of the whole actual flow for a taxpayer to “confirm whether declaration is necessary or not,find the necessary procedures, make an inquiry, submit a tax return, and pay taxes” as well as to enableoptimum improvements for UI/UX; and specify a customer journey for the persona to implement tax
procedures. Through it, we are visualizing the current problems and considering improvement measures.
As concrete measures, we are promoting the following: simplify the declaration and application
procedures (expansion of the range of items that can be entered automatically, etc.) towards realizationof “Japanese version of pre-filled tax return” (tax return not requiring description); sophistication of searchand consultation using digital, etc.

7

NATIONAL TAX AGENCY REPORT 2023

About the NTA⑶ Status of the initiatives concerning “improvement of efficiency in andsophistication of taxation and tax collection”

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Data are the sources of wisdom, value, and competitive edge; they also are positioned as the clues used
to solve social challenges in Japan, which is an advanced country in addressing new challenges. In tax
administration, too, we think it is important to improve efficiency in and sophisticate the operations using
data (or on the premise of data usage) as well as to tackle the challenge of BPR.
Therefore, we will not only proactively use data but also actively leveraging online tools in carryingout tasks, including the scenes of taxation and tax collection. Also, we will expand data-used informationexchange for inquiries to other entities such as local governments and financial institutions, throughpromoting digitalization.
Also, from the viewpoint of effective use of data, we are considering the ways to use taxation data for
academic research purposes as well.

Proper and Fair
Taxation and Collection⑷ Promotion of digitalization at business operators

LiquorAdministration
Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

3

Remedy for
Taxpayer Rights

Powerful promotion of digitalization of all transactions of business operators or of all accounting processes,
etc.: This is regarded as one of the important challenges for the whole government to tackle.
Regarding the administrative tasks processed by business operators in daily operations (those related
to economic transactions, those processed by back office), if they can be completed by digital consistently,
it is expected each business operator can enjoy huge advantages such as improved accuracy throughprevention of simple errors and improved productivity through higher operational efficiency.
Therefore, we also are promoting the measures to encourage business operators to pursue operational
digitalization, in addition to digitalization of tax procedures.
If economic transactions and operations are digitalized, and if an environment is established where
efficient digital processing is enabled consistently including tax processing, productivity improvement
would be realized at business operators; as a result, digitalization of other business operators would
be encouraged, and both tax procedures and operations would see further digitalization. This means
creation of a “virtuous cycle in that promotion of digitalization leads to further digitalization.” Thus, if it
occurs, we could expect it will lead to DX promotion for whole society and advantages of digitalization
will spread to whole society.
We are endeavoring to help business operators promote respective operational digitalization, fromthe perspective of enabling digitalization of whole business process of business operators, with an eye on
the fact that such efforts have social implications in that they could contribute to DX promotion for wholesociety.

Thoughts on management of tax administration

We will pursue the following initiatives, to fulfill the above-mentioned missions and roles as well as to earn
understanding and trust from taxpayers.

NTA Initiatives⑴ Enhancement of services for taxpayers

NATIONAL TAX AGENCY REPORT 2023

Statistics● Work to provide an excellent means for filing and payment using ICT, such as e-Tax (online national tax return filingand tax payment system) and filing assistance on the NTA website.
● Provide the necessary information needed for filing via NTA websites etc. so that taxpayers can correctly file andpay their taxes themselves.
● Work to improve an environment and provide support to enhance tax education, in cooperation with the relevant
ministries, agencies, educators and private organizations.
● Respond to advance inquiries and advance pricing arrangement of transfer pricing taxation, so the taxpayer can
predict in advance the tax treatment of its own economic activities.

8

Ⅰ

About the NTA⑵ Promotion of administrative work efficiency and enhancement oforganizational foundations● To appropriately perform the NTA’s duties under the severe fiscal conditions, work to secure the necessary structure,staff and budgets, appropriately allocate them, and take the taxpayers viewpoint in working to boost efficiency andreduce costs.
● Constantly review to simplify and boost efficiency, for example by computerization of clerical processes. For theincome tax return, focus on encouraging use of e-Tax which contributes to enhanced taxpayer convenience.
● Thoroughly control administrative documents and information.
● Accurately assign personnel corresponding to their experience and abilities, while paying attention to hiring andpromoting female staff. To enhance needed specialized knowledge, provide guidance and development measures
such as training.

⑶ Proper and fair taxation and collection and remedy for taxpayer rights● Take a strict stance against malicious taxpayers, while protecting taxpayer rights and interests.
● Upon dispositions for taxation and delinquent tax, and then accurately confirm the facts and apply the laws andregulations.
● Systematically work in response to increasingly complex economic transactions, etc. Work to enhance the system tocollect information, and accurately prioritize issues such as response to the increasing diversity of asset investments
and fraudulent refunds for consumption tax.
● For international transactions, exchange information with foreign tax authorities based on tax treaties, and takestrict actions towards tax avoidance etc., in which taxation problems are found.
● Promote the enhancement of corporate governance on tax matters through exchanging opinions with executive
officers of large enterprises, etc. At the same time, reallocate the volume of examination duties to corporations witha high necessity of examination from those judged that the necessity of examination is low including the situationof corporate governance.
● Achieve proper and speedy processing of a request for review, as well as develop environment for more userfriendly request for review system.

⑷ Proper management of liquor administration● As the competent agency in liquor business to aim at the preservation of liquor tax and the sound development ofliquor business, the NTA endeavors to ensure the proper enforcement of laws and strengthens the promotion of
liquor business (especially promoting exports) from the comprehensive perspective that covers consumers and thewhole liquor industry while coordinating and cooperating with related government offices, organizations, etc.
● Make efforts to cultivate overseas markets through distributing information globally and holding international
negotiations, etc., to promote the establishment of brands through spreading the use of Geographical Indications(GI), to provide technical assistance to liquor manufacturers, etc. and to ensure the safety of liquor among others.
● To ensure fair trade of liquor, conduct a survey of liquor business operators to check the actual state of trading of
liquor, etc. If a transaction that does not comply with“the Standards for the Fair Trade of Liquor”is detected, we takestrict actions including issuing instructions.
● To respond to social requirements, such as countermeasures against health problems caused by alcohol intake andpromotion of recycling resources, increase the publicity of the ban on selling liquor to people younger than the ageof 20 and recycle of liquor containers, etc.

⑸P roper administration of services by Certified Public Tax Accountants (CPTAs)● Endeavor to coordinate and cooperate with Certified Public Tax Accountants’
Associations as organizations for
improving the work of CPTAs, because CPTAs play important roles in the proper and smooth realization of the selfassessment system.
● Work to prevent violations of the Certified Public Tax Accountant Act by CPTAs etc. At the same time, take strict
action against CPTAs etc. who violate the Certified Public Tax Accountant Act and so-called “fake CPTAs” byapplying disciplinary actions and filing accusations seeking prosecution.

⑹ Results evaluation (Evaluation of Policies) and improvement of tax
administration● Provide easily understood information on issues the NTA should work on, on its policy initiatives and its various
measures, and on its evaluations and verifications of the results of their implementation. In addition, work to improvetax administration, based on the evaluations and verifications of the results of its implementation.

9

NATIONAL TAX AGENCY REPORT 2023

Overview of the national tax organization

About the NTA

4⑴ National revenue and taxes
National revenue (initial budget for general account revenues) for FY2023 stands at 114,381.2 billion yen,

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administrationof which 69,440 billion yen is from taxes and stamp revenues.
The income tax, corporation tax, and consumption tax account for about 80% of tax revenues.

■ National revenue (FY2023 general account revenues (initial budget))

9.3

Proper and Fair
Taxation and Collection

Others＜Categories of Taxes and Stamp Revenues＞

trillion yen（8.1％）

Specialdeﬁcit-ﬁnancing
bonds

Government （25.4％）
bonds

35.6

Total

114.4
trillion yen

Construction
trillion yen
bonds（31.1％）
trillion yen

6.5

69.4

trillion yen（60.7％）

Withholding
income tax

Inheritance tax
2.8 trillion yen（4.0％）

Consumption
tax

17.5 trillion yen（25.2％）

Total

69.4

trillion yen

23.4 trillion yen（33.7％）（5.7％）

Remedy for
Taxpayer Rights

29.1

trillion yen

Taxes and
Stamp revenues

Self-declared
income tax
3.5 trillion yen（5.0％）

Corporation tax

14.6 trillion yen（21.0％）

1.2 trillion yen（1.7％）

Stamp revenue

0.9 trillion yen（1.3％）

Gasoline tax

2.0 trillion yen（2.9％）

LiquorAdministration

Liquor tax

Motor vehicle tonnage tax 0.4 trillion yen（0.6％）
0.9 trillion yen（1.3％）

Customs duty

1.1 trillion yen（1.6％）

Others

1.1 trillion yen（1.6％）

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Tobacco tax※1 Government bonds are revenues generated by construction bonds to finance public project-related expenditures and special deficitfinancing bonds issued to compensate for the revenue shortfalls. All are debts which are to be repaid in the future.
※2 The total amount of each item and the amount indicated as “Total” do not exactly match, due to rounding of fractional figures.
※3 Please refer to “Thinking About Japan’s National Finance” available on the official website of the Ministry of Finance (https://www.
mof. go.jp/zaisei/index.htm [in Japanese]) concerning national expenditures.

⑵ NTA budget
The NTA initial budget in FY2023 stands at 641.7 billion yen, with salary costs amounting to 563 billion
yen and general expenses 78.7 billion yen.

Statistics

NATIONAL TAX AGENCY REPORT 2023

10

Ⅰ

About the NTA⑶ Organizational structure and number of personnel of the NTA
The NTA supervises 12 Regional Taxation Bureaus and 524 Tax Offices throughout Japan to process
national tax administration. Also, the authorized capacity for manpower of the NTA is 55,985 persons for
FY2023.（※1, ※2）

Ministry of FinanceTax Bureau Planning and drafting of the tax system(Local Branch Oﬃces)

National
Tax Agency
The NTA plans and draws up programs
to implement tax administration,
standardizes the way to interpret tax
laws, and directs and supervises theRegional Taxation Bureaus and Tax
Oﬃces (1,100 persons, 2.0%).

（Internal Subdivisions）
Commissioner’s
Secretariat
Taxation Department

Collection Department
Large Enterprise andCriminal Investigation
Department

Regional Taxation Bureaus andOkinawa Regional Taxation Oﬃce（12）Sapporo, Sendai, Kanto-Shinetsu, Tokyo,
Kanazawa, Nagoya, Osaka, Hiroshima,
Takamatsu, Fukuoka, Kumamoto, Okinawa

Regional Taxation Bureaus direct andsupervise Tax Oﬃces in their jurisdiction.
Bureaus also carry out various otheroperations, including the provision of tax
consultations and other services to taxpayers,
tax examinations on large-scale wide areas
and diﬃcult-to-process cases, and disposition
for delinquent taxes (15,790 persons, 28.2%).

Planning and Administration
Department（※4）
Information System Development
and Operation Department（※5）
Developes information systemsof the NTA such as e-Tax andKSK system and others.

Taxation Department
Directs and supervises divisions
within the Taxation Groups
within Tax Oﬃces, and conducts
diﬃcult tax examinations suchas on large-scale and malicious
taxpayers.

Collection Department（Councils etc.）

National Tax Council（※3）（Facilities）
National Tax College
The National Tax College trains new
recruits and provides important job
training to tax oﬃcials working in theﬁeld so that they can adapt promptly tosocial changes (328 persons, 0.6%).

（Special Body）

National Tax Tribunal
The National Tax Tribunal makes decisions
on requests for reconsideration regarding
decisions made by the District Director of
the Tax Oﬃce or other authorities, pursuant
to the laws/regulations about national tax(464 persons, 0.8%).

Directs and supervises the Revenue
Management and Processing
Groups and the Collection Groups
within the Tax Oﬃces, and initiates
procedures for large-scaledelinquent taxpayers.

Large Enterprise
Department

Carries out examination oflarge-enterprises and others.

Criminal Investigation
Department
Investigates malicious tax
evaders in order to pursue
criminal responsibility.

Regional Tax Tribunals (12)& Branches (7)(Regional Tax Tribunals): Sapporo, Sendai,
Kanto-Shinetsu, Tokyo, Kanazawa,
Nagoya, Osaka, Hiroshima, Takamatsu,
Fukuoka, Kumamoto, Okinawa(Branches of Regional Tax Tribunals):
Niigata, Nagano, Yokohama, Shizuoka,
Kyoto, Kobe, Okayama

Tax Oﬃces（524）
Tax Oﬃces are points of contact with
taxpayers, working as ﬁrst-line bodies
to process tax administration (38,303
persons, 68.4%).

Co-ordination Division
Special Oﬃcer(Public Relations)
Revenue Management
and Processing Group

Receives tax returns, issues certiﬁcates oftax payment, receives cash for tax
payment, general consultation on
taxation, etc. It also inputs information
on tax returns, manages national tax
claims, and administers refund
procedures, postponements of tax
payment, and payments in-kind.

Collection Group

Provides consultation on tax
payments, and executes procedures
against tax delinquencies.

Individual Taxation Group
Carries out consultation on income
tax and sole proprietor’s consumption
tax, and related examinations.

Property Taxation Group
Carries out consultation on
inheritance tax, gift tax, income tax
imposed when land, buildings, or
stock were transferred, and related
examinations. The Group alsod e t e r m i n e s r o a d p r i c e r a t i n gs,
which are used as reference incalculating inheritance tax, etc.

Corporation Taxation Group
Provides consultation on corporation
tax, local corporation tax,
consumption tax on corporations,withholding income tax, and othertaxes including stamp tax andgasoline tax, as well as related
examinations.

Chief Examiner(Liquor Tax and Industry)
Carries out consultation on liquor
tax, related examinations, and backoﬃce work for liquor sales licenses.

※1 The headcount and percentage indicated in each department represents the prescribed number of personnel, and its percentage of the overall
number of personnel in the NTA (FY2023).
※2 The prescribed number of personnel of 38,303 persons for tax offices includes the prescribed number of personnel of 220 people (0.4%) topromote employment of the challenged.
※3 The National Tax Council addresses the following: ① deliberation of cases in which the NTA Commissioner does not recognize the opinion of
the Director-General of the National Tax Tribunal as reasonable, where the Director-General of the National Tax Tribunal determines the caseby interpreting laws differently from the notification issued by the NTA Commissioner; ② implementation of CPTAs examination and decisionon the disciplinary actions applied to CPTAs; and ③ deliberations on the establishment of labeling standards for liquor, and other matters.
※4 Office of Submission Processing Center was established in July 2021. For details, please refer to Column 2 on page 21.
※5 Information System Dept. was installed in the Tokyo Regional Taxation Bureau in July 2023.

11

NATIONAL TAX AGENCY REPORT 2023

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration
About the NTA～ Enhancing taxpayer services through using data, digital tech, etc. ～Japan adopts a self-assessment system for most of its national taxes. Under this system, taxpayers
themselves calculate their income and tax amount, based on which they file and make a payment. In
order for the self-assessment system to function properly, taxpayers are required to have a high level ofawareness regarding tax payment and proactively and properly fulfill the obligation of tax responsibilities
as provided by the law.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

To this end, we are working on various convenience improvement measures and information provision
to enable taxpayers to submit tax returns and pay taxes in an easy and convenient manner, by using data
and digital tech. This way, we are striving to strengthen our services for taxpayers.

1e-Tax（Online national tax return filing and tax payment system）

Proper and Fair
Taxation and Collection～ Strongly promote various measures in order to expand the uses of e-Tax ～By using e-Tax, each taxpayer can pursue various procedures for national taxes online such as tax return
filing, submission of applications / notifications, and tax payment.
We are strongly promoting various measures to enhance the convenience of e-Tax for expanding
usage of e-Tax (see Column 1), and online usage rate has been steadily increasing.

Remedy for
Taxpayer Rights■ Outline of e-Tax
User

My Number Card
（DigitalCertiﬁcates）

Tax return, application,
notiﬁcation and tax
payment (Direct payment
etc.)

e-Tax

National Taxes

Smartphone that canread My Number cardor card reader/writer

Information
sharing

In principle, the taxpayer himself or
herself needs to provide a digital signature.

eLTAX※ Digital signature using My Number Card is notnecessary when pursuing the procedures for tax
payment.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs※ Digital signature by taxpayers can be omitted incases where CPTAs ﬁle returns online on behalfof the taxpayers.

LiquorAdministration+

Tax authorities

Local Taxes

Advantages

Advantages○Completing the procedure without visiting
the Tax Oﬃce
○Submission of attachments can be omitted.
(Retention obligations will remain.)○Can receive refunds early○Reduction of manpower and paperwork forthe series of procedures from accounting
processing to tax return ﬁling enabled○Reduction of operational volume for receiving
tax returns and making data entries○Reduction of document management costs○Data utilization○Information sharing between national taxes (e-Tax) and local taxes (eLTAX)

Statistics

NATIONAL TAX AGENCY REPORT 2023

12

■ Rates of online filing

We will aim to further raise the rates of online filing through setting the target.
Corporation

100%
90%
80%

75.5%

77.6%

tax returns

82.1%

Inheritance tax returns

Income tax returns

84.9%

86.7%

87.9%

55.2%

60%
50%

39.1%

40.6%

44.0%

59.2%

Target: 40％

29.5%
23.4%

20%

14.4%
2016

2017

2018

2019

2020

2021

2022

※1 Data for FY2022 are preliminary.
※2	For income tax, the data include tax returns prepared at the consultation sites andsubmitted via e-Tax.
※3	The graph shows rates for major tax procedures. Please refer to the e-Tax website(https://www.e-tax.nta.go.jp/mypage/index.htm［in Japanese］) for other procedures.

Column11Target: 71％

47.5%

30%

10%

Target: 92％

65.7%

70%

40%

91.1%

2023 （ﬁscal year）

Website of e-Tax“The NTA measures to raise theusage rate for online procedures”

Measures for improving the convenience of e-Tax
 rovision of “My page” where each taxpayer can browse his or her own informationP
registered with e-Tax [It became available in January 2023]

On “My page” of e-Tax, each taxpayer can confirm the following:
his or her own personal information (“name,” “place to pay taxes,”etc.); information on the registered financial institutions; information
related to tax payment or refund (processing status of refund,etc.); information related to each tax item (“approval of blue return
submission for income tax,” etc.).
※ For details, see the e-Tax website
https://www.e-tax.nta.go.jp/topics/topics_20230104_identify.htm［in Japanese］

Website of e-Tax“My page”

My page
Personal information setting
Basic information

E-mail address

Other registeredinformation

Identity verification

Refund/Payment

Change password

Information by tax category
Income tax

Consumption tax

NISA

Envisioned screen of “My page”

2 N umber of times to read My Number Card became only once【It took effect in January 2023】
We introduced a new function to implement personal identity confirmation targeting the taxpayers who use
e-Tax by My Number Card.
If this process is used, digital signature using My Number Card (which has been required each time dataof a tax return, etc. are sent to e-Tax to date) becomes unnecessary.
Along with this, the number of times to read the My Number Card of any taxpayer who submits a tax
return using My Number Card became only once from three times previously allowed.
※1 Those who did tax filing using My Number Card in the past are targeted.
※2 See the website of e-Tax for details.

13

NATIONAL TAX AGENCY REPORT 2023

Website of e-Tax“e-Tax will be more convenient,
if you use your My Number Card”

Filing for tax return

About the NTA

2～ Number of taxpayers who filed tax return for income tax was 22.95 million.
More than half of them filed for refund. ～Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Tax filing is a procedure, in which the taxpayer calculates income and tax amount for a one-year period,
files and pays taxes. Not only persons obligated to file, but also those who obtain tax refunds file tax
returns, for example, because they paid a certain amount of medical expenses. 22.95 million people filed
their income tax for 2022; thus, one out of five residents filed tax returns. Of these, over 13.33 million
people filed for refunds, comprising over half of the people filing tax returns.

⑴ Promotion of filing by e-Tax at home

Proper and Fair
Taxation and Collection

The NTA promotes that taxpayers themselves file at home by e-Tax (including the filing assistance on the
NTA website), so that they can file returns without visiting the filing sites.
Among the tax returns filed for 2022, those who filed from home using e-Tax accounted for 5.92
million people. This figure was about 1.3 times the number of people who had done so for 2021.

（Ten thousands）

About 1.3 times

Those who prepared and ﬁled
tax returns at the ﬁling sites(e-Tax or printed returns)

428

381

115

（47）

186

592

（153）

442

345

311

289

（102）

321

Those who ﬁled tax returns via e-Tax at home

2018

2019

2020

2021

2022

（Year）The number of people who filed
2022 tax returns
Via e-Tax at honeten thousands

2,295
1,076

Transmissions by taxpayers
themselves592

Via smartphone, etc.

249

Proxy tran s m is s io n s b y
CPTAs

484
289

Via e-Tax at the designatedsites by local governments

154

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsAt the filing sites

LiquorAdministration（13）(+1.5 million people)（249）

Remedy for
Taxpayer Rights■ Trend in the number of taxpayers who filed tax returns via e-Tax at home

※ Figures in parentheses represent the number of taxpayers who used smartphones, etc. for filing. (Using a smartphone, etc. became
allowable for the first time for 2018 tax return.)～ The filing assistance is available on the NTA website ～With the filing assistance on the NTA website (https://www.keisan.nta.go.jp/kyoutu/ky/sm/top#bsctrl [inJapanese]), if a taxpayer enters the amounts and other necessary information according to the guidanceon the screen, income amounts and tax amounts are automatically calculated, and it allows taxpayers tocomplete their tax returns accurately for income tax, consumption tax for sole proprietors, gift tax, etc.
as well as financial statements for blue returns; and the filing data thus produced can be transmitted as
is via e-Tax.
Note that, by linking with Mynaportal, information on deduction certificates such as for medical
expenses, life insurance premiums, and tax reduction through contributions to local governments can be

Statistics

collectively obtained, and amounts, etc. thereof are automatically entered in corresponding fields.
Regarding the filing assistance on the NTA website, we make efforts for better design to enable easyuse so that much more taxpayers are going to file at home; for instance, we have provided dedicatedpages for smartphone users.

NATIONAL TAX AGENCY REPORT 2023

14

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration■ About tax filing for income tax using smartphone
We introduced a site designed and optimized for smartphone (the dedicated site for smartphones) andare gradually expanding its target scope. It can be used not only by those who earned employment
income (who received salaries from the workplace) or miscellaneous income (who received pension
income or income from side business) but also by those who prepare a ﬁnancial statement for blue
return and statement of earnings and expenses.
Regarding a “tax withholding slip for salary income,” if it is captured by a smartphone camera, it
can be automatically entered to the ﬁling assistance on the NTA website.

Target scope for tax ﬁling by smartphone（ NEW will be applicable starting with the tax ﬁling for 2022 [Early January 2023 ~].）
【Target types of income】【Various deductions, etc.】

 Business income* NEW Income deductions of all types

 Real estate income* NEW Special credit for contributions to Employment income Miscellaneous income Occasional income
 Annual transaction statement for speciﬁed
account（Transfer income, dividend income, etc. from listed
stocks, etc.）

 Amount of losses on transfer of listed shares,
etc. carried forward from the previous year

political parties, etc.

 Reduction or exemption of income tax
due to disasters

 Foreign tax credit
 Amount of estimated income tax prepaymentthat has been already paid

 Losses carried forward to be deducted
this year※ Business income and real estate income can be handled on the dedicated site for smartphones, only whenﬁnancial statement for blue return and statement of earnings and expenses were prepared using the ﬁling
assistance on the NTA website.
※1 The dedicated site for smartphones can be used only for the tax ﬁling for 2022.
※2 In the case of income other than the above, income deductions or tax credit, taxpayers can prepare tax returns on the same screen as PCʼs

～ The number of people that submit a tax return with e-Tax using the“filingassistance on the NTA website”is increasing each year ～In the filing period for 2022, the number of people who filed tax returns for income tax from home with
e-Tax using the“filing assistance on the NTA website”was 5.61 million including proxy transmissions
by CPTAs. The number of users has been increasing year after year. The figure exceeded the number ofpeople who submitted paper tax returns using the“filing assistance on the website”(3.51 million people)
for the first time. This shows a further accelerated pace of the shift from paper to e-Tax filing. Of 5.61
million people, about 2.49 million people created a tax return using smartphone, etc.

⑵ Response to diverse taxpayer needs～ Easing congestion at the filing sites by using numbered tickets～
To ease congestion at the filing sites during the tax filing period, numbered tickets, denoting when to enter
the sites, are distributed to the taxpayers wishing to visit the sites.
The tickets are distributed at each site on the day; additionally, they can be issued in advance online.

〜 Opening Tax Office on Sundays during the filing period 〜
We heard voices from taxpayers that they want filing consultations on the days other than weekdays as
well. In response to that, we receive tax returns and provides filing consultations on two Sundays during
the tax return filing period at some Tax Offices.

Cooperation with local governments
In an effort to simplify taxpayer filing procedures and improve administrative efficiency, the NTA is working on
achieving close cooperation with local governments: for instance, mutual provision of data on tax returns ofincome tax.

15

NATIONAL TAX AGENCY REPORT 2023

Promotion of cashless payment

About the NTA

3～ Building an environment that enables cashless payment in an easy andconvenient manner ～At present, about 70 percent of total national tax payments are made at financial institutions, convenience

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

stores or counters of Tax Offices.
We are striving to expand usage of cashless payments with a goal to achieve 40% in cashless payment
share by FY2025, aiming to perform the following three: improve the convenience for taxpayers; improve
the operational efficiency; and realize non-contact tax procedures.
In addition, for carrying out dissemination and PR for the trend toward cashless payments and soliciting
its usage, we are collaborating with the BOJ and other relevant entities such as local tax authorities andProper and Fair
Taxation and Collection

financial institutions.

■ Proportions of national tax payments by payment method: FY2021 results(based on the number of cases)
Cashless payment
32.2％

Remedy for
Taxpayer Rights

Counter of ﬁnancial institutions
60.5％

Convenience store Counter of Tax Oﬃces
2.1％
5.2％

〜 Enhanced taxpayer services by offering various payment methods 〜

LiquorAdministration

Given the diversification of payment methods and the progress in using cashless, we enhance taxpayer
convenience for national taxes as well, through introducing diverse payment methods as below:⑴ Cashless payment methods

General guidance about tax paymenton the NTA website

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Transfer tax payment*Available for self-assessment income tax and consumption tax of sole proprietors only
Transfer tax payment is a tax payment procedure by debiting tax amounts from a deposit account or a savings
account designated by each taxpayer by using a request form for payment by transfer in advance.
By submitting a transfer request to a Tax Office or financial institution, or via e-Tax, transfer tax payment willautomatically be carried out from the next time onwards.
This is a convenient procedure for the individuals who submit tax returns of income tax and consumption tax.

Direct payment (account transfer using e-Tax）*Available for all tax categories

NATIONAL TAX AGENCY REPORT 2023

Statistics

Direct payment is a procedure that enables taxpayers to pay tax immediately or on a designated payment date,based on an application for use submitted in advance, by simple operation (by way of transfer from a deposit
account or a savings account) after filing tax returns digitally by e-Tax.
Any user (limited to individuals) can use this by submitting the usage application to the relevant tax office or
to your financial institution or by submitting the usage application via e-Tax.
This is a convenient procedure for those who file a tax return with e-Tax, or particularly for those who
frequently pursue payment procedures (monthly payment of withheld income tax, etc.).

16

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration
Online tax payment using Internet banking etc.
*Available for all tax categories

This is a procedure for payment using the Internet banking or ATM of financial institutions that accept Pay-easy
payment, which is enabled by submitting an application to start using e-Tax in advance.

Payment with credit card
*Available for all tax categories

This is a payment procedure which is used by inputting credit card information on the dedicated website (credit
card payment site for national taxes).
※1 When paying taxes this way, settlement charges dependent on the tax amount need to be paid separately. (Such settlement charges
are not the funds to be counted as part of the revenues for the government.)※2 Please note that the tax amount that can be paid with a credit card is less than 10 million yen and within the payment limit of thecredit card to be used.

Payment by smartphone app
This is a payment procedure where a usable payment method is chosen on a dedicated website (smartphonededicated payment site for national taxes).
※1 Amount that can be paid at a time is 300,000 yen or less.
※2 Certain balance needs to be charged in advance for the payment method chosen.

⑵

Payment methods other than cashless

Payment at convenience stores*Available for all tax categories except for the spontaneous payment portion of withheld income tax
This is a payment procedure at convenience stores where either one of the methods shown below is used.
① A QR code is created on smartphone or PC at home, it will be read by a kiosk terminal at a convenience
stores, and the payment slip rendered there will be used to pay at the casher.
② Taxpayers may also complete the payment at convenience stores using the barcoded payment slips issued by
the jurisdictional Regional Taxation Bureau or Tax Office which are used to inform the taxpayer of scheduled
income tax payments and finalized tax payment amounts prior to the payment deadline such as estimated tax
prepayment.
※1 Amount that can be paid at a time is 300,000 yen or less.
※2 “QR code” is a registered trademark of DENSO WAVE INCORPORATED.

Cash payment*usable for all tax categories
This is a payment procedure where payment is made by cash together with the payment slip at a financial
institution (a designated agent for receiving payments on behalf of the BOJ) or the relevant tax office.

17

NATIONAL TAX AGENCY REPORT 2023

Efforts towards My Number System

About the NTA

4⑴ Outline of My Number System
My Number System is the social infrastructure to improve administrative efficiency, enhance public

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

convenience, and realize a fairer and more just society.
Upon the introduction of My Number System, the NTA acts as an entity assigning Corporate Numbers
and as well as utilizing My Numbers (Individual Numbers) and Corporate Numbers.
Myna chan

For the overview of My Number system,
please refer to the Digital Agency website

Proper and Fair
Taxation and Collection(https://www.digital.go.jp/［in Japanese］).

The Digital
Agency website

a. My Number（Individual Number）
My Number is a 12-digit number which has been designated to anyone holding residential registration.

Remedy for
Taxpayer Rights

Currently, the usage of My Number is limited to the procedures prescribed by acts or municipal
ordinances in the fields of social security, taxation, and disaster response.

b. Corporate Number
Corporate Number is a 13-digit number given to each corporation, such as stock companies. Corporate
Number is usable by anyone without any restrictions in usage scope, unlike My Number.

LiquorAdministration⑵ Actions as the entity utilizing My Numbers and Corporate Numbers～ Utilization and publicity in the national tax field ～An individual or a corporation needs to fill in the Number (My Number or Corporate
Number) on the tax return or the legal payment record every a submission to

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

the Tax Office. When My Number is provided, strict identity verification of theindividual is required to prevent identity theft.
For popularizing the My Number system, we created a special corner for the
My Number system on the NTA website (https://www.nta.go.jp/taxes/tetsuzuki/
mynumberinfo/index.htm［in Japanese]) which contains FAQ, etc. Additionally,
the NTA is actively promoting various publicity and public relations activities.

The special corner for
the My Number systemon the NTA website～ Improving convenience for taxpayers ～Taking the opportunity of the introduction of the My Number system, attaching a copy of a certificate ofresidence became unnecessary in a filing procedure such as for housing loan tax credit. In addition, when
having transmitted a tax return of income tax, consumption tax, gift tax or inheritance tax via e-Tax, sucha taxpayer can access information on income tax return, processing status of filing for refund, etc., savedin the e-Tax’s message box via the “Notice”function of Mynaportal.1

Statistics

In addition, to further simplify the procedures for year-end adjustment and tax return filing startingwith the applications for 2020, the NTA realized a new function (linkage with Mynaportal) whereby thedata on deduction certificates for life insurance premiums, etc. can be obtained as a batch from the1 Mynaportal refers to an online site operated by the government which enables users to complete various administrative procedures in one stopand check notifications from government organizations.

NATIONAL TAX AGENCY REPORT 2023

18

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration
Mynaportal for automated entries to various application forms. We plan to increase document types suchas deduction certificates available in Mynaportal going forward.

■ Image of linkage with Mynaportal
Insurancecompany

Deduction
certificate for
insurance
premiumBank, etc.
Year-endbalancestatement

Securities
company

Collectively
obtain as datafrom Mynaportal

Year-end
adjustment
procedure

Task of checking
Automatic entry into deduction
Employee declarations! Send via in-house Payroll documents andStaff figures reduced
LAN, e-mail, etc.
Create with the NTAʼs ‟softwarefor year-end adjustment
deduction declarations creation,”etc.

Annualtransaction
reportTax return
filingprocedure(Tax return only)

Taxpayer

Automatic entry into
return forms and automatic
calculations♪

Tax Office■ Data obtainable through Mynaportal for each year of tax return filingYear

List of data that can be obtained through Mynaportal
Deduction certificate

2020 issued by a life insurancecompany

Special credit certificate
for housing loan, etc.

Certificate of year-end
Annual transaction
balance of the borrowing statement for specified
for home purchaseaccounts

Receipt certificate for
Deduction certificate fordonation, etc.(Tax deduction Notice on medical expenses (from September to
2021 earthquake insurance
through donation to local
December for 2021)
premiums
municipalities)
Slip of withholding2022 tax on public pension
annuities

Certificate for deduction ofsocial insurance premiums
Notice on medical expenses (for one full year)(national pension insurance
premiums)⑶ Promotion of popularization of My Number Card
We are promoting relevant measures to improve the convenience for taxpayers using My Number Card aswell as proactively engaging in dissemination and PR activities towards wide acceptance of My Number
Card, leveraging various opportunities (period for tax filing, Think About Tax week, etc.).

⑷ Actions as the entity assigning Corporate Numbers
We designate Corporate Number to each corporation and notify it of the number whenever a newly
incorporated stock company, etc. is registered.
Also, information on the three basic items (that is, trade name [or corporate name], head officelocation [or location of the main office], and Corporate Number) is publicized on the “NTA Corporate
Number Publication Site.”
As part of the social infrastructure, Corporate Number data are expected to be used effectively in awide scope of areas whether public or private. At the above site, information on the three basic items canbe searched, and also, data download function and web-API1 function are provided.
In addition, English representations of the trade name and head office location of each corporation
are publicized, given the registration by respective corporation.
1 A mechanism of inter-system collaboration that enables acquisition of information that match certain conditions, through transmittal of a requestfrom each user’s system designating the conditions.

19

NATIONAL TAX AGENCY REPORT 2023

Promoting digitalization of administrative services

About the NTA

5～ Towards the realization of a Digital Government1 ～Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

In accordance with the “Priority Policy Program for Realizing Digital Society”(approved in a Cabinet meeting
held in June 2023), we are endeavoring to promote digitalization for the national tax-related procedures(improvement in convenience through improved UI/UX, improvement in efficiency and rationalization of
relevant operations and systems, etc.), for the purpose of smoothly and properly realizing spontaneous
fulfillment of tax-payment obligations by taxpayers.
More specifically, the following improvement measures are being implemented targeting theindividuals who use e-Tax with My Number Card: running “My page”where own personal information canbe confirmed; reducing the number of times to read the information on My Number Car at the time of
application, etc.
Additionally, we will keep promoting digitalization of the whole procedures and improvements of UI/UX (expanding the target scope of automated entries in a tax return through linkage with the Mynaportal,etc.) from now on.

Proper and Fair
Taxation and Collection

Ensuring stable and reliable ICT system and information security

Remedy for
Taxpayer Rights

Since the national tax-related operations are closely connected to public rights and obligations and responsible
for managing taxpayer information of a large volume, failure in its ICT system is likely to have a large impact on
citizens and impair the credibility of tax administration. Therefore, the NTA is working to maintain stable operationof ICT systems by regularly updating ICT equipment.
We take great care for the prevention of improper use and leakage of information. For instance, we allow
our officials to use only the necessary information for their works, and we also conduct security audits regularly.
For the core systems (e-Tax system and KSK system that keep the key data), the NTA obtained the certifications
based on the ISMS2 compliance evaluation system (certifications based on ISO/IEC27001 and JISQ270013) which
are in conformity with international standards, in 2007. They have been regularly updated since then.
Furthermore, in 2020, the system that designates the Corporate Number also acquired the same certification.

LiquorAdministration

Kokuzei Sogo Kanri (KSK) System (Comprehensive management
system for national taxes)

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsThe KSK System, which links all Regional Taxation Bureaus and Tax Offices, is a computer system to facilitate
sophisticated and efficient administration by centrally managing information across the area and the type of tax.

Systems upgrade (Development of new system)
The NTA has decided to aim for “improvement of taxpayer convenience”and “more efficient and sophisticatedtaxation and collection”through utilization of ICT, and as the infrastructure to realize them, we are promoting thedevelopment of next-generation system towards its full-scale introduction in FY2026.
We are promoting the development of next-generation system with the following concepts:
1. A system to realize operational processing mainly with data (from paper to data),
2. Integration of database applications, which are currently divided by tax category (elimination of vertical divisionsystems)
3. Renewal from so-called large “main frame”computers using the original OS to so-called an “open system”using
store-bought general-purpose OS (departure from main frame).

Statistics

1 “Digital Government” refers to the initiative of the entire government to review the state of the administration on the premise of digitization, while
placing priority on enhancing convenience for citizens and businesses.
2 ISMS (an abbreviated code for Information Security Management System) is an organizational initiative to implement the planning, operation,
review and improvement which are required in order to maintain a situation of appropriate management for confidentiality, completeness andusability of information assets which should be protected.
3 ISO/IEC27001: 2005 is one of the standards created by the International Organization for Standardization. This became a global standard for information security management systems in October 2005. JISQ 27001:2006 is a Japanese domestic standard published in May 2006, corresponding
to ISO/IEC27001.

NATIONAL TAX AGENCY REPORT 2023

20

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration
Strict Management of Information
The NTA retains various information, such as income data of individuals, and strict management of informationis required, since should these information leak out, cooperation from taxpayers cannot be expected, disrupting
smooth execution of examinations and collection of taxes, etc.
For this reason, should a tax official leak confidential information obtained through a tax examination, etc.,
criminal punishment based on tax laws (up to two years in prison or a fine of up to 1 million yen) that is more
serious than penalty defined by the National Public Servant Law (up to a year in prison or a fine of up to 500,000yen) will be sentenced.
In terms of tax officials, in addition to the regularly scheduled training on information security which they are
required to attend, they are also informed that certain locations, such as storefronts and entrances, be avoided forquestionings during an examination in consideration of the taxpayer’s privacy.
Since the NTA handles specific Personal Information (personal information which contains My Number), withrespect to the aim of related laws and regulations, such as the My Number Law, we strive to exercise control of
taxpayer information held by the NTA in a strict manner, such as through regular inspection of the condition inwhich administrative documents are archived and managed.

Column2

Center-based system for internal administrative tasks

Realization of a “center-based system for internal administrative tasks”is an initiative to seek higher efficiency
in operations and ensure operational accuracy through concentrating the operations to a dedicated processingorganization (operation center) concerning internal administrative tasks of multiple tax offices.
We will gradually expand the scope of targeted tax offices, and it is planned to target all tax offices toconcentrate their internal administrative tasks to a center by 2026.

【Before】●●Tax OfficeOﬃce of Submission Processing Center

External tasks

・Tax examinations
・Collection ofdelinquent taxes

Internal tasks

Making entries to a tax
return, examination of eachtax return, processing forrefund, correction of simple
errors, etc.

▲▲Tax Office
External tasks

21【After】

Internal tasks

NATIONAL TAX AGENCY REPORT 2023

Improved eﬃciency throughconcentrated processing
Internal
tasks

Externaltasks

3

About the NTA

Column reation of a new category for exam (National tax
Cexpert B［Science, engineering, and digital course])

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

To further promote digital transformation for tax administration, we have created a new category of nationaltax expert B (Science, engineering, and digital course) for the people of science, engineering, and digital course,
starting with the national tax expert exam of FY2023, in addition to the conventional category of national tax
expert A for the people of law and literature course.
See the NTA website for details.

Proper and Fair
Taxation and Collection
Remedy for
Taxpayer Rights
LiquorAdministration
Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Statistics

NATIONAL TAX AGENCY REPORT 2023

22

6Providing information, etc.

～ Various public relations activities ～The NTA provides various information that could help taxpayers perform tax return filing, tax payment,
etc. mainly through the NTA website (https://www.nta.go.jp/［in Japanese］), as well as through mass
media (TV and newspapers), various public relations mediums and explanatory meetings.
In addition, regarding general interpretation and treatment of tax laws, the NTA provides relevant
information on the NTA website as well as through pamphlets available at Tax Offices and municipality
offices, etc.; regarding general questions and consultation requests related to taxes, we answer them bytelephone, etc., and; when there are questions on tax applications related to an actual transaction, we
make it a rule to respond to an advance inquiry.

Think About Tax Week
The NTA has been regularly taking various efforts for the improvement in the awareness regarding tax payment toassist citizens to deeply understand the significance and roles of taxes and the current state of tax administration,and to proactively and properly fulfill the obligation of tax responsibilities.
The week from November 11 to 17 is annually set in particular as the “Think About Tax Week”. The NTA
conducts various PR activities mainly during this period and also considers this period as an opportunity to receive
opinions and requests for tax administration.
The NTA recognizes that understanding the relationship between daily life and taxes through this effort isessential to maintain and develop self-assessment system.

⑴ The NTA website～ Provide easy-to-understand information on the NTA website ～To enable anyone to easily use the NTA website, we are making efforts to deliver information in an easyto-understand format, such as simplified layout of the website with menu selection put into one place.
We are also striving to provide contents with text enlargement and voice reading functions so thatall people including the elderly and handicapped can use information and functions provided on the NTA
website without difficulties.

23

NATIONAL TAX AGENCY REPORT 2023

※The following diagram is as of June 2023.

1
3

1
2
6

Search function within thewebsiteFunction to search through informationon the entire NTA website by referencing
a keyword

2

5

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

4

About the NTA

Overview of NTA Website (top page)

Text enlargement / voice
reading
Support functions for the elderly andthose who have visual disorders

3

7

Proper and Fair
Taxation and Collection

Global navigation
Information guide that serves as an
entrance to various information sites

8
4Urgent notice
Displays highly urgent information,such as disaster-related messages

105

Remedy for
Taxpayer Rights

9

BannerGathers and displays the banners
created by the NTA

6

Featured topics

7

LiquorAdministration

Displays terms related to informationthat deserves special attention on the
NTA website

New arrivals
Displays new arrival information in atable by content

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

8

Search for tax office
Enables the user to search for its
jurisdictional tax office by postal codeor address

11

9

Menu by area of interest
Displays page with the most accessby area of interest

10

SNS etc.
Collects and displays informationfrom all tools used by the NTA torelease information

11

Statistics

Site map
Displays the composition of the entire
NTA website in a table※ The NTA submits information including new information regarding the NTA and a press release through the official NTA Twitter account (@NTA_Japan) other than the NTA website. The free video sharing site “YouTube”also delivers videos with information on the NTA activities (including the
publicity activities of each Regional Taxation Bureau and Tax Office) and support for self-assessment procedures.

NATIONAL TAX AGENCY REPORT 2023

24

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration⑵ Tax education～ Developing the environment for, and providing support for enhanced tax
education ～The NTA works on developing the environment for and providing support for a solid tax education inschool education, so that the significance and roles of taxation that forms the country’s foundations will
be correctly understood.
Specifically, the Council for Promoting Tax Education among related ministries which was installedat the national level (consisting of the NTA, Ministry of Internal Affairs and Communications, Ministry of
Education, Culture, Sports, Science and Technology, etc.) meets to discuss effective support measures.
Furthermore, we dispatch our staff as teachers to tax education classes on the request of schools, organize
tax essay contests, conduct various tax-related events, etc., in cooperation with the Certified Public Tax
Accountants’
Associations and the relevant private organizations, centered on the councils for promoting
tax education established in each prefecture (members: Regional Taxation Bureaus, Tax Offices, local
governments, educational leaders, etc.).
Moreover, taking into account changes in the environment surrounding tax education, such as revisionof the education guideline and the GIGA School Program, the NTA is making efforts to develop courses andteaching materials that deliver a profound learning experience by accurately ascertaining the needs of theeducators and collaborating with related agencies, enabling children and students to make observations
in a subjective and interactive manner.
Certain contents are uploaded to the“Tax learning corner”
of the NTA website(https://www.nta. go.jp/
taxes/kids［/ in Japanese］), for enabling pupils and students to learn about taxes themselves. Also, byusing the“Tax☆Space UENO”(facility for tax education, located in the Tokyo Ueno Tax Office), we makesuch programs as“Tax Office Tour”
and“Experiential Learning”
available.

Tax education class■ Number of lectures dispatched to
Tax education Class, etc.
Fiscal year

FY2021

FY2022

Officials

7,193

9,126

Non-officials

25,53431,965

Total

32,72741,091※ Includes the number of lecturers dispatched to universities
and vocational schools.

25

NATIONAL TAX AGENCY REPORT 2023

■ Number of essays entered for Tax
Essay Contest
Fiscal year

FY2021

FY2022

Received from highschool students

178,807148,050

Received from juniorhigh-school students

450,142

460,918

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

The Tax Museum in the National Tax College has valuable
collections of historical documents and materials regarding
national taxes. The Museum displays its large number ofcollections throughout the year and is open to a wide
variety of visitors such as primary school children and otherpeople as well as specialists on tax history.
In addition, a “Special Exhibition”is held on a certain
theme for each year.
This year’s theme is titled “Cities and taxes of themodern times” and the exhibition is being held from
November 1, 2022 until October 31, 2023.
For further information, please visit the National Tax
College section within the NTA website (https://www.nta.
go.jp/about/organization/ntc/english/).

About the NTA

Providing tax knowledge through the Tax Museum

Proper and Fair
Taxation and Collection

Tax Museum
Special exhibition corner⑶ Lectures

Remedy for
Taxpayer Rights～ Tax Enlightenment Activities to Improve Awareness Towards Tax Payment ～If a taxpayer can correctly understand the roles oftaxes, significance of the tax return filing system,and the rights and obligations of taxpayers aswell as can think about them proactively, it could■ Frequency of lectures provided toadultsFiscal year

FY2021

FY2022

payment. Thus, the NTA holds lectures, supported

Frequency held

758 times

1,148 times

by the Regional Taxation Bureaus and Tax Offices,

LiquorAdministration

cultivate deep sense of acceptance towards tax

for college students and adults with the objective
to improve awareness of tax payment.

⑷ Briefings for taxpayers

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs～ Organizing various educational sessions to provide information ～To help taxpayers better understand the tax
procedures and tax system revisions, the NTA
holds a variety of briefings, including: (1) various
briefings on tax returns, (2) briefings on revisions
to the tax laws and (3) briefings for newly
established corporations.

■ Frequency of briefings and number ofparticipantsOperation year

FY2021

FY2022Frequency held

7,990 times

19,537 times

Number ofparticipants

224
441
thousand people thousand people⑸ Tax consultation

Statistics～ Tax consultations are handled through the NTA website ～To enable each taxpayer to solve his or her own questions about national taxes, the NTA website conducts
consultation through “Chatbot”and provides information through “Tax answer.”Also, tax consultation requests over the phone are covered by the phone consultation center installedin each Regional Taxation Bureau.
NATIONAL TAX AGENCY REPORT 2023

26

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration～ Scope has been expanded for tax consultations covered by chatbot ～“Chatbot for tax consultation,”(https://www.nta.go.jp/taxes/shiraberu/chatbot/index.htm [in Japanese])that enables consultation 24 hours a day, 365 days a year, is available on the NTA website.
Through the introduction of the chatbot, users can ask questions on taxes easier and reach therelated information posted on the NTA website quicker. In addition to the consultation subjects of “taxdeclaration for income tax”and “year-end adjustment”covered previously, “invoice system”was added
to the list of subjects that can be covered in tax consultation via the chatbot in May 2022 and “taxdeclaration for consumption tax”was added to it in January 2023.
In addition, general answers are posted to the FAQs concerning national taxes in the corner of “Taxanswer” (https://www.nta.go.jp/taxes/shiraberu/taxanswer/index2.htm [in Japanese]) where you canconduct a search about your personal status, life events, etc.

■ Number of questions received by the chatbot（ten thousand cases）

2021

2022

2023

Final tax return forincome tax

434

634

578

Final tax return for
consumption tax

―

―

8

Year-end adjustment

49

56

―

Invoice system

―

19

20

You are cordially suggested
to use the chatbot andthe tax answer, for yourquestions or consultation
requests concerning
national taxes.

Chatbot characterTax staﬀ FUTABA※1 F
 or each year, data for “Year-end adjustment”represent the
numbers of consultation requests covered between October
and January of the following year. (Data for the items other than“Year-end adjustment”represent the numbers between January
and December.)※２ Regarding 2023, data shown are as of May 31, 2023.

■ Number of accesses to “Tax answer”（ten thousand cases）

Number of accesses

FY2020

FY2021

FY2022

7,875

8,908

8,079

Chatbot

Tax answer■ Number of consultations to phone
consultation centers（ten thousand cases）

Number of
consultation requests

FY2020

FY2021

FY2022

582

557

489

※ Including the numbers of consultation requests via email dedicatedto the aurally challenged as well as via FAX～ Tax Offices provide tax consultation services on a prior appointment basis ～We encourage taxpayers to use the chatbot, “Tax answer”or phone consultation centers, if there is anyquestion or a consultation request concerning national taxes.
When consultation over the telephone is difficult, for example if it is necessary to check specificdocuments or facts, interviews can be made at the Tax Office with jurisdiction.
In the case of an interview consultation, since it is necessary to set aside ample time for the interview
and we need to notify the documents to be brought with, we request that an appointment for theinterview is made in advance over the phone.

27

NATIONAL TAX AGENCY REPORT 2023

About the NTA⑹ Advance inquiries～ Enhanced predictability for taxpayers ～FY2021

FY2022

Number of Advance
Inquiries Received

117

125

■ Number of Q&A examples posted on
websiteAs of the end of fiscal year

FY2021

FY2022

Number of Q&A posted

1,991

2,005

Remedy for
Taxpayer Rights

4

Fiscal year

Proper and Fair
Taxation and Collection

Column■ Number of Advance inquiries
received by written reply procedure

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

In case a taxpayer has questions regarding the tax
treatment of any transaction conducted or to be
conducted, Tax Offices receive advance inquiries
before transactions or tax filing deadlines andprovide answers.
If requested, a written answer may be provided
to the advance inquiries mentioned above undercertain conditions and the disclosed as Q&As on the
NTA website (https://www.nta.go.jp/law/bunsho
kaito/01.htm［in Japanese］) (Response examples inwriting).
Among the answers to advance inquiries,
answers that can serve as reference for othertaxpayers are also posted on the NTA website(https://www.nta.go.jp/law/shitsugi/01.htm［inJapanese］) (Q&A examples).

NTA’s response to the Covid-19 pandemic（as of May 8, 2023）

LiquorAdministration

Since the first infected person of Covid-19 in Japan was confirmed in January 2020, various infection control
measures and economic measures have been undertaken by the government in accordance with the degree of
expansion of the pandemic.
When responding to consultation requests about tax filing or conducting tax examinations, etc., we strive
to be consistent with the situation of each taxpayer, etc. and ensure that any step taken by us be based onunderstanding cooperation by taxpayers.
Concerning the NTA’s response and efforts addressing the COVID-19 pandemic, we have managed to dowide and fast information provision using not only our own website (https://www.nta.go.jp/taxes/shiraberu/
kansensho/index.htm [in Japanese]) but also various media such as press and SNS as well as the channels of
related private organizations and local governments. Also, regarding tax treatment, we have managed to provide
easy-to-understand information: for instance, posting answers to FAQ on our website; and information provisionin the form of video.
We ask citizens of Japan for continuous understanding and cooperation in preventing further spread of thepandemic.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

１ Measures for final income tax return filing
Since a significant number of people visit the final income tax return sites at the tax offices, etc. for filingconsultations, we encouraged e-Tax be used for 2022 filing period for income tax returns so that taxpayers could
file their tax returns from home, etc. At the same time, we started to accept filing consultations before the tax
return filing period. In these ways, we managed to reduce and disperse the number of visitors during the filing
period for income tax returns.
In addition, to mitigate congestion at the sites, we adopted the sorting ticket system (prior issuance online isalso possible) for admitting entry on the nationwide basis, just like the returns for 2021.

２ Measures for those experiencing difficulties in paying their taxes

NATIONAL TAX AGENCY REPORT 2023

Statistics

Regarding those who were difficult to pay taxes due to deteriorated cash flow resulting from the impact of theCovid-19 pandemic, we have endeavored to apply grace system for national tax payment to them promptly andflexibly considering the situation and mental conditions of such taxpayers.
Regarding the grace system, we have made efforts to make it applicable to those who need it early, by
approaching taxpayers through various channels as follows: system briefing provided at the designed corner;and provision of information and PR through the website of the NTA, associations of CPTAs, related privateorganizations, and industrial associations, etc.
In addition, Tax Offices accept questions and inquiries about the grace system, and for each application forextension, it is recommended to use digital application via e-Tax or postal mail.

28

Ⅱ

Efforts for Enhancement of Services for Taxpayers
and Efficiency of Tax Administration
３ Measures for liquor business operators
To support the liquor industry which has faced deteriorated consumption due to the Covid-19 pandemic, we have
deployed public-private promotional events to recover and expand the domestic demand for liquor products(events for consumers in the relevant regions). Also, it is our current mission to help the liquor business operators
pursue managerial reforms and help the industry promote the structural transformation, to realize the conversionof economic structure as well as the virtuous cycle in the post-pandemic. Regarding such initiatives and thespecific support measures of the government for the operators, we are striving to provide necessary information.
For further details, please refer to information available on the NTA website (https://www.nta.go.jp/taxes/sake/kansensho/index.htm [in Japanese]).

7

Proper withholding tax system operation～ Providing information and publicity to withholding agents ～In the withholding tax system, withholding agents finalize the taxation process by doing year-end
adjustments, which eliminate the procedures for tax returns for a large portion of the over 50 million wage
earners. The withholding tax system is as important in tax administration as the self-assessment system.
To have withholding agents properly process withholding tax procedures and pay taxes, the NTA
provides information and pursues publicity activities about the withholding tax system through creatinga page for withholding agents on the NTA website and posting thereon various guidebooks, pamphlets,
explanatory videos, etc.

8

Actions for the amended Consumption Tax Act⑴ Invoice system for consumption tax (Retention of eligible invoices, etc.)
Starting in October 2023, the requirement of retaining eligible invoices will take effect (Invoice system).
Under the invoice system, tax credit on purchases requires the retention of accounting books and invoices,
etc. such as the “eligible invoices”that are issued by taxable business operators who applied to the headof relevant tax office and got registered as “eligible invoice issuing business operators.”
We are working to provide information and consultation, while maintaining close communication andcooperation with relevant ministries and private organizations, so that business operators are able to fully
understand the invoice system, and respond to it or prepare for it.

⑵ Measures for smooth and appropriate shifting of consumption taxes
Consumption tax is a tax which is supposed to be eventually incurred by consumers through pass-throughonto the price of a product. Therefore, it is important that business operators are able to pass theconsumption taxes onto the product prices in a smooth and appropriate manner.
The NTA is ensuring response to the inquiries, etc. on the pass-through of consumption tax at a cornerof each Tax Office (consultation corner about the revised regulations on consumption tax) in collaboration
with related ministries and agencies.

29

NATIONAL TAX AGENCY REPORT 2023

Cooperation with private organizations〜 Provide necessary tax information to taxpayers in cooperation with relevant
private organizations 〜Blue Return Taxpayers’Associations

Proper and Fair
Taxation and Collection

Blue Return Taxpayers’Associations are organized for the purpose of “contributing toestablishment of self-assessment system and promoting of small enterprises,”mainly
by sole proprietors who use the blue return system. They perform a wide range ofactivities: for instance, guidance on bookkeeping for sole proprietors; consultation on
account settlement and tax return filing; holding various briefing sessions; provision ofmanagement support; and encouraging filling of blue return.

The website of the National
General Federation ofBlue Return Taxpayers’
Associations

Remedy for
Taxpayer Rights

Corporations Associations

The website of the National
General Federation of
Corporations Associations

LiquorAdministration

Corporations Associations are organized for the purpose of “contributing to spreading
the tax knowledge, maintaining and developing a proper and fair self-assessment system,
as well as achieving smooth tax administration.”They pursue various activities such as
tax education, tax awareness campaign, conducting seminars on tax and corporate
management. With the NTA’s support, they promote “enhancement of corporations
tax compliance with a self-check list”and hold “contests for the best picture postcards
related to taxes.”

Indirect Tax Associations

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Indirect Tax Associations are organized for the purpose of “cooperating in achievingsmooth tax administration through acquiring knowledge about indirect taxes andestablishing a voluntary self-assessment system.”They pursue various activities such as
spreading the tax knowledge on consumption tax, promotion of the program to ensurecomplete payment of consumption taxes, recruitment of “tax slogans”(supported by theNTA), and making recommendations for improving the tax system and execution.

The website of the National
Federation of Indirect Tax
Associations

Savings-for-Tax Associations
Savings-for-Tax Associations are organized for the purpose of “ensuring smooth paymentof various taxes by means of saving funds for tax payment.”They pursue various activities
such as promotion of the program to ensure complete payment by due date, recruitmentof “essays on tax”from junior high school students (supported by the NTA), etc.
The website of the National
Federation of Savings-forTax Associations

Tax Partner Associations

Statistics

Tax Partner Associations are organized under the jurisdiction of the Tax Offices of the
Osaka Regional Taxation Bureau, for the purpose of “spreading the tax knowledge,
promoting proper filing of returns, uplifting tax payment morality, and thereby contributing
to the development of enterprises and regional societies.”They pursue various highly
public activities such as provision of various briefing sessions, promotion of PR activities,
and provision of educational opportunities on tax.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

The NTA is making public announcement and public relation actively, through various explanatory
meetings etc., cooperating with relevant private organizations.
Relevant private organizations are instrumental in promoting measures for the wider uses of e-Tax,
popularizing the My Number system, and holding various joint events in the “Think About Tax Week”.
As such, they play significant roles for realizing an adequate self-assessment system, spreading the tax
knowledge, etc. through the strengthened collaboration and cooperation between the organizations.

About the NTA

9

The website of the Tax
Partner Associations

NATIONAL TAX AGENCY REPORT 2023

30

Ⅲ Proper and Fair Taxation and Collection
1

Promotion of proper and fair taxation～S trict examination on malicious taxpayers, but brief contact for simple mistakes ～The NTA analyzes information from various angles and for malicious taxpayers who try to illicitly evade
their tax burden, we establish appropriate examination systems, and conduct strict examinations.
In addition, for other taxpayers, the NTA takes care of its administration processes in an effective andefficient manner, such as making brief contact via in writing or by telephone, and balances its allocationof limited human resources.

■ The number of field examinations（thousand cases）

Operation year
Tax category

2019

2020

2021

Self-assessment income tax

60

24

31

Corporation tax

76

25

41

Consumption tax

105

36

57

Inheritance tax

11

5

6

■ The additional tax amount of field
examinations（billion yen）

Operation year
Tax category

2019

2020

2021

Self-assessment income tax

99.2

53.3

80.4

Corporation tax

164.4

120.7

143.8

Consumption tax

100.4

86.2

111.0

Inheritance tax

68.1

48.2

56.0

～ Strengthening the measures for date utilization ～The NTA is trying to develop a prediction model to extract potentially high-risk taxpayers by extracting,processing, and analyzing necessary information from various data, as well as grasping the consistency,
correlation, and tendencies, etc. between the data. Looking forward, we will endeavor to improve theefficiency of taxation operations and sophisticate them, through combining thus-formulated prediction
model and the various materials and information held by the organizations of the NTA.

⑴ Priority matters addressed in the tax examinations～ Conduct sufficient examinations for ensuring proper taxation of consumptiontax ～As consumption tax is the largest amount of national tax revenue and attracts the strong attention of the
public, proper tax administration is especially necessary.
In particular, as there are cases where fraudulent consumption tax refund was claimed through thefiling of false returns, we work to prevent fraudulent refund by instituting sufficient examinations of thefacts.
Also, the NTA is working increasingly closer with customs authorities to strictly address the evasionof consumption tax by those who wrongfully traded consumption tax-free goods abusing the system oftax-free shops.

◎ Cases of examinations of consumption tax● The NTA uncovered a case in which fictious purchases were registered pretending that an expensive fixed asset
was purchased.
● The NTA found that the person had purchased a large volume of consumption tax-free goods in certain tax-free
shops, but that the person had not exported the goods thus purchased enjoying wrongful benefits from theexemption of consumption taxes.

31

NATIONAL TAX AGENCY REPORT 2023

About the NTA～E xamination keeping in mind of increasingly diverse and international asset management ～Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

The NTA clarifies the actual state of increasing overseas investment and cross-border transactions andconducts in-depth examinations about them by effectively using the information obtained from the recordsof outward remittances, etc. as well as the information obtained as per the information exchange system
based on the tax treaties, etc. with competent foreign authorities (https://www.nta.go.jp/taxes/shiraberu/
kokusai/ eoi/index.htm [in Japanese]) and as per the Common Reporting Standard (CRS) (https://www.
nta.go.jp/ taxes/shiraberu/kokusai/crs/index.htm [in Japanese]).
We properly impose taxes on investment profit generated from diversified and globalized asset
management conducted in particular by the affluent class. We also actively conduct examinations toaccumulate information for the future proper taxation of inheritance tax.

Proper and Fair
Taxation and Collection◎ Cases in which the NTA identified overseas assets not reported for Japanese
tax purposes or international tax avoidance● The NTA used the exchange of information based on the tax treaties, etc. and uncovered a case in which a
representative had sales proceeds deposited in his/her personal account at an overseas bank and did notproperly report sales.
● Triggered by CRS information, we uncovered a fact that the taxpayer had not included an overseas deposit
account and an overseas real estate property in the tax return filing for inheritance tax.

Since no tax return filing will cause a strong senseof unfairness to voluntary compliant taxpayers,
the NTA precisely identifies non-filers by utilizing
relevant material information and actively conducts
examinations.

■ Examination results of non-filers

Remedy for
Taxpayer Rights～ Identify non-filers by utilizing information ～（income tax, inheritance tax and corporation tax）

（cases）
15,00013,00033.5

35.5

11,000

3,000

20
15

10,367

10
4,871

2019

30

2020

5,886

LiquorAdministration

5,000

35
25

19.9

9,000
7,000

Number of examination cases（billion yen）
Additional tax amount
40

5

0
2021
（Operation year）◎ Cases of examinations of non-filers

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs● For a taxpayer who had earned large profits from video streaming, we grasped a fact that the taxpayer had hid
the profits and had not covered them in tax filing.
● In the case of a taxpayer who had earned a large amount of money from“guarantee-paid drinking,”we grasped
a fact that the taxpayer had not submitted tax returns of income tax for them despite the requirement to do so.
● We uncovered a fact that the subject heir had withdrawn certain cash from the deceased’s bank accountbefore the death of the deceased and had stored large amount of cash at home, but that tax return filing forthe cash had not been done despite that filing for inheritance tax had been required.

～ Precise Action Towards New Fields of Economic Activities including the Sharing Economy1 ～Statistics

As for the response to the economic activities in new areas such as sharing economy, we strive to create
an environment that enables adequate filing: for instance, calling on the users (taxpayers) via the industrialorganizations, intermediate companies, etc., for proper filing.
In addition, we endeavor to gather relevant information and enhance the analysis, for precisely
grasping the taxpayers that might bear certain problems in taxation, to ensure provision of administrative
guidance to them or to conduct tax examinations.
For more details of such efforts, please refer to the “Precise Action Taken Towards New Fields
of Economic Activities including the Sharing Economy”(https://www.nta.go.jp/information/release/kokuzeicho/2019/sharingueconomy_taio/index.htm［in Japanese］) uploaded on the NTA website.
1 New fields of economic activities including the sharing economy”is used as a collective term for sharing business and service, transactions of cryptoassets (virtual currency), online advertising (affiliate etc.), digital contents, online shopping and auctions and new other economic transactions.

NATIONAL TAX AGENCY REPORT 2023

32

Ⅲ

Proper and Fair Taxation and Collection～ Accurately understanding claims made by taxpayers and executing proper tax administration ～When conducting tax examinations, the NTA consistently strives to accurately interpret assertions madeby the taxpayer and study the laws and regulations based on accurate fact finding to exercise proper
taxation. Towards this end, we are thoroughly adhering to the procedures and processes as defined inlegal requirements.

⑵ Utilizing approaches other than field examinations～ Promote various contact methods in addition to field examinations ～To ensure proper and fair taxation within the limited resources, the NTA has been making effort tooperate its work effectively and efficiently by employing various measures other than field examinations
to ensure that taxpayers voluntarily fulfill their tax duties.

◎ Efforts to ensure voluntary fulfillment of tax obligations by taxpayers● Initiatives to encourage voluntary review by contacting by documents or telephone, to the person who seemingly
has made some calculation error or has applied incorrect tax laws, and who seemingly has failed to file a return
based on accumulated information by the NTA● Initiatives to promote proper declaration by publication through the NTA website on points to pay extra attention
to when filing one’s tax return

Cooperative approaches
We carry out initiatives to maintain and improve tax compliance through cooperative approaches in order toadvocate voluntary efforts towards proper filing by large enterprises.

◦ Approach to enhance the corporate governance on tax matters

The NTA, taking the opportunities of examination of large enterprises, checks the status of corporate governanceon tax matters, exchanges opinions with executive officers, and presents them effective examples of approaches
to promote their efforts for the enhancement of corporate governance.
We are striving to maintain and improve the filing level, through increasing the number of corporations thatcan be expected to do adequate filing voluntarily, by encouraging large companies to enhance the quality of tax
matter-related corporate governance.
With this action, the NTA will be able to effectively utilize the limited human resource. From a corporate
perspective, we expect the effects of a reduction in risks that tax affairs are inappropriately processed, and areduction of burdens due to tax examinations.
For more details, please refer to the“Endeavors to enhance tax matter-related corporate governance(for corporations handled by the Large Enterprise Division)”(https://www.nta.go.jp/taxes/tetsuzuki/shinsei/
shinkoku/hojin/sanko/cg.htm [in Japanese]) on the NTA website.

◦	Promotion of the “self-inspection of tax returns and self-audit of tax items” atlarge enterprises～ Publication of check sheets by Large Enterprise Department of Regional Taxation Bureau ～The site provides two types of check sheets:“Check sheet for tax returns,”which can be used for a voluntary
inspection of tax returns before submission, and“Check sheet for tax items that require special attention atlarge enterprises.”Details of this activity are available in the“Information concerning〈Self-inspection of tax
returns and self-audit of tax matters〉(for corporations handled by the Large Enterprise Division).”(https://www.
nta.go.jp/taxes/tetsuzuki/shinsei/shinkoku/hojin/sanko/tk.htm［in Japanese］) of the NTA website.
These sheets can be used for self-audit of, for example, omissions in entering adjustments in settling accounts
and in adjustments for taxable income before tax return preparation. We expect the effect of a reduction inrisks that processing errors are identified during examination by utilizing these to prevent errors in tax returns.

◦	Establishment of consultation counter concerning transfer pricing taxation ona trial basis.

For the purpose of maintaining and improving tax compliance concerning the transfer pricing taxation for large
enterprises, we established a“consultation counter concerning the transfer pricing taxation”at each Regional
Taxation Bureau on a trial basis. Each counter provides information on general questions regarding the transfer
pricing taxation; it also briefs on the thoughts of the tax authority and attention points in relation to applicationof the transfer pricing taxation, concerning specific consultation on each foreign-related transaction etc. that are
subject to the requirement of the transfer pricing documentation.

33

NATIONAL TAX AGENCY REPORT 2023

～ Collect data and information throughevery opportunity to use suchinformation for accurate guidance aswell as tax examinations ～About the NTA⑶ Data and Information■ Number of information items collected
45,00040,00035,00030,00036,97643,486

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

The NTA, through every occasion, collects avariety of information through the informationinquiry procedures and found in the course oftax examinations, in addition to the withholding
records of employment income, payment recordsof dividend, etc. The NTA uses such information for
guidance as well as tax examinations.

Information under mandatory submission
Other information（ten thousands）
50,00046,60625,00020,00015,00010,0005,000
010,8752020

32,2602021（Operation year）

Proper and Fair
Taxation and Collection

201927,122⑷ Criminal investigation～ Pursuing criminal responsibility of malicious
tax evaders ～Remedy for
Taxpayer Rights

Tax criminal investigation aims to pursue criminal responsibilityof malicious tax evaders and to contribute both to realizing
proper and fair taxation and to maintaining the self-fillingsystem by taxpayers through the effect of “punishing one
serves as a warning to all.”■ PR leaflet of the NTA
Criminal Investigations

LiquorAdministration～ Proactive engagement with cases of highsocial impacts ～Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsIn FY2022, in view of the purpose of the tax criminal
investigation, the NTA focused on and actively engaged
with the cases of high social impacts, such as consumption
tax cases, non-filing cases, international cases, and cases
concerning other social trends.
As a result, in relation to consumption tax, the NTA
accused criminals in many cases of illicit tax refunds including
a case where; a corporation, that ran a sales outlet of export
items, recorded fictitious taxable purchases and fictitious taxThe NTA proactively engages infree export sales, disguising as if it had purchased cosmetic
PR on taxation and tax collection,
products in Japan and sold them to foreign tourists; multiple
through lectures and tax education.
corporations recorded fictitious taxable purchases of
gemstones. In addition, the NTA also accused criminals in the following cases as well: a large-scaleinternational case where fraudulent acts were conducted with a foreign corporation; a case where
guidance for fraudulent refund of income taxes was provided to many salary earners using SNS, etc.

Statistics◎	An example of accusation to the prosecutor in FY2022
The NTA made an accusation of a case with a large-scale international
fraudulent scheme in which a foreign corporation is used.
The NTA made an accusation of a case where multiple taxpayers evaded corporation or income tax in collusion
with one specific supporter for their fraud through the following means: recording fictious payments of commissions
to a foreign corporation whose representative in Japan is the supporter; disguising a domestic transaction of
crypto assets as a transaction with a foreign corporation etc. Each of the taxpayers as well as the supporter ofthe fraud were accused.

NATIONAL TAX AGENCY REPORT 2023

34

Ⅲ

Proper and Fair Taxation and Collection■ Status of criminal investigations
Number of cases
conducted
FY2021116

FY2022

145

Number of cases
closedcases

103

Number of cases withaccusation filed to theprosecutor

cases

75

139

cases

103

Amount of tax
evasion per caseTotal amount of tax
evasion cases(portion with accusation
filed to the prosecutor)(portion with accusation
filed to the prosecutor)

million yen

million yen

10,212（6,074）

99（81）

12,760（10,019）

92（97）※ Figures of tax evasion include additional taxes.

■ Rulings in the first trials of criminal investigation cases
Number of Number ofjudgements convictions
②
①
cases

cases

Percentage Number of convictions Amount of tax Term of prison Amount of fines
per person
sentence perof cases with prison sentences evaded per(company)
personcase
without probation
convicted
⑥
⑤
④
③
②／①

FY2021117（5）

117（5）

100.0

FY2022

61（2）

61（2）

100.0

％

persons5（3）3（1）

million yen

months

64

15.7

47

13.6

million yen

15

12※1 Figures in the brackets indicate cases combined with non-tax crimes.
※2 ④ to ⑥ exclude those combined with non-tax crimes.

◎ Examples in FY2022 resulted in conviction	Prison sentence given to a repeat offender of tax evasion due to non-filing a tax
return on FX transaction income
Prison sentence（1 year and 4 months）was given to a repeat offender of tax evasion in a case, where the offender
had hidden the income from FX transactions in other person’s name, and evaded payment of income taxes pastlegal due dates idly without filing tax returns.

An example of hidden properties found during criminal investigations
Cash was found cash in bags placed under a room floor.

■ Web-TAX-TV: We never miss tax evasions! Missions of national tax investigators
In the program of “Web-TAX-TV” (Internet program releasedby the NTA), work of national tax investigators, eager tosmoke out tax evaders daily, is introduced in the form of a TV
drama.
Please watch it for your reference.

【The video is here】

35

NATIONAL TAX AGENCY REPORT 2023

Ensuring tax payment

About the NTA

2⑴ Establishment of voluntary tax payment

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration～ Approximately 76.2 trillion yen of taxes paid within the fiscal year （98.8% paid
within the fiscal year）～

Self-assessed national tax becomes revenue when paid into the national treasury. In FY2021, about 77.1
trillion yen of taxes (amount determined for collection) were self-assessed in Tax Offices. Of this, about
76.2 trillion yen of taxes (collected amount) were paid into the national treasury within the fiscal year, fora 98.8% collection ratio.

～ Measures to prevent delinquencies ～Proper and Fair
Taxation and Collection

To prevent delinquencies, the NTA is proactively conducting publicity on payment deadlines and saving
funds for tax payment with the cooperation of relevant private organizations and the Certified Public Tax
Accountants’Associations, while providing a diverse means of payment means such as tax payment byaccount transfer and direct payment.
To ensure payments in a planned manner, the NTA has introduced various payment options, such astransfer tax payments and advance payment utilizing direct payment, while promoting active adoption ofthese options.
A written notice on payment due date is sent in advance to taxpayers who have paid after due datepreviously. In case payment due date has passed, we encourage payment before the payment demand
letter is sent.

Remedy for
Taxpayer Rights※ Delinquency signifies that the national tax was not paid by due date and a payment demand letter was sent.

⑵ Efforts to promote reduction of tax delinquency

LiquorAdministration～ Amount under the process of clearance of delinquent taxes reduced to 31.5%of the peak time ～At the end of FY2021, the total amount of delinquent taxes was 885.7 billion yen.

■ Trend of collection of delinquent tax, for all tax categories
Amount under the process of clearance of delinquent taxes was reduced to 31.5% of the peak time（FY1998）.

（billion yen）
2,660.6 2,703.1
2,498.0

2,500
2,000
1,500

2,328.0
2,051.6

2,783.0 2,814.9 2,766.1

2,666.8

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

3,000

Newly occurredCollected
Under collection process

2,484.2
2,251.9
2,022.8
1,867.3

1,784.4

1,684.4

1,615.1

1,553.8

1,495.5

1,420.1

1,361.7

1,270.2

1,141.4

1,000

1,064.6

977.4

897.1 853.1
811.8

755.4

828.6

885.7

500
0

`92 `93 `94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 `20 `21（ﬁscal year）※1 Figures are current cases under the collection process of delinquent taxes.
※2 Figures for local consumption tax are not included

Amounts under collection process remains high at
approximately 900 billion yen.

Statistics➡Continue to work on preventing and reducing delinquencies withcooperation of all Tax Bureaus and Offices.

For delinquent national taxes, from the viewpoint of fairness with the great majority of taxpayers who pay
within the due date, the NTA is working for early completion, and works to resolve delinquencies under
the following basic policy.
NATIONAL TAX AGENCY REPORT 2023

36

Ⅲ

Proper and Fair Taxation and Collection～ Appropriate action in collection while considering each delinquent taxpayer’s situation ～In the collection of delinquent taxes, we encourage a voluntary payment and confirm the taxpayer’sintention to pay while we will determine the resolution policy after fully understanding the situation of eachdelinquent taxpayer, such as the condition of its business, assets and balance of income and expenditure.
In particular, should the taxpayer consult with the NTA concerning difficulties it may have in paying
in a lump sum, we will consider applying measures to ease conditions of the tax payment, such as graceof tax payment or asset conversion, after listening carefully to the taxpayer’s circumstances, and permit
payment in installments provided it satisfies the requirements of laws and regulations.
On the other hand, should sincere intentions towards payment of taxes not be recognized, including
where repeated defaults of payment commitments are made, the NTA will take disposition for collecting
delinquent tax, such as seizure and auctioning off of assets in a timely and appropriate manner.

～ Strict and resolute handling of large and malicious delinquent cases ～When collecting delinquent tax in a large and notably malicious delinquency case, strict and resolute action
is taken, such as search and seizure or collection of delinquent tax through public auctions, exercised ina timely and appropriate manner.
In addition, stricter actions are taken in especially malicious cases with an attempt to hide assets
or otherwise evade execution of disposition for delinquent tax1. This crime of evading disposition forcollecting delinquent tax is referred to the prosecutor.

◎ Case examples of accusation filed to the prosecutor in FY2022● The NTA accused the case in which estate was hidden by the entity through having the funds paid by customers
be transferred to deposit account of an employee of the delinquent company.
● The NTA accused the case in which estate was hidden by the entity through a disguise where a businesshad been started by its common-law spouse and having the trade name of the business (a fictitious name)issue invoices for the trade receivables of the delinquent company to its transaction partners and receive theproceeds thereof.

～ Organizational response to difficult-to-handle cases ～For delinquency processing of difficult-to-handle cases including complicated transactions and disguise oftransfer of asset, the NTA secures sufficient resources necessary to solve the case and takes organizational
actions such as disposition for delinquent tax by management over a wide geographic area, with timely
project team formation.
The NTA also takes legal action, such as a lawsuit to demand the rescission of a fraudulent act2 andactively uses legal means to collect delinquent taxes.

～ Certain handling of consumption tax delinquency cases ～With respect to delinquency of consumption taxes, the NTA is striving to reduce the balance of delinquentconsumption tax in a decisive manner such as by making sure that new cases are dealt with swiftly.

■ Trend of collection of delinquent consumption tax（billion yen）
800

The amount of delinquent taxes was reduced to 56.2% of the peak time (FY1999).

700
614.6

600

511.2

500

424.2

400

335.9
275.2

300
200

632.3 629.9

618.3

Newly occurredCollected
Under collection process

578.3
529.6

488.5 487.5

465.5 459.2

453.7 441.9

425.6

386.1

416.9

396.0

356.4 347.7

355.1
334.0

310.0 302.8

290.4 266.8

324.5

180.4

100
0

`92 `93 `94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 `20 `21（ﬁscal year）※1 Figures are current cases under the collection process of delinquent taxes.
※2 Figures for local consumption tax are not included.

1 If actions such as hiding of assets are done to evade seizure or other disposition for collecting delinquent tax, up to 3 years in prison or up to a 2.5
million yen fine can be imposed.
2 A lawsuit to demand the rescission of fraudulent act is a lawsuit to negate the validity of a legal act (fraudulent act) regarding assets between thedelinquent taxpayer and third party, where such act harms the claimant (country). The lawsuit aims to take back from the third party that asset
separated from the delinquent taxpayer, and return it to the delinquent taxpayer.

37

NATIONAL TAX AGENCY REPORT 2023

～ Conduct effective and efficient phone
notices ～The Office of Tax Collections Call Center is broadly
makes system-assisted phone calls as reminders forpayment, to ensure effective and efficient collectionof delinquent taxes.

Issued reminders
47,560Returned to （5.9％）
tax oﬃces
75,790（9.4％）

Cases
subject toreminders
807,809

Payment
pledged
74,720（9.2％）

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administrationin charge of new delinquency cases. This office■ Collection of delinquent taxes by
the Office of Tax Collections Call
Center

About the NTA⑶ The Office of Tax Collections Call
Center

Paid fully
609,739（75.5％）

Over the year from July 2021 to end of June 30,
2022, The NTA sent demand letters to about 810,000
people, as part of the efforts, of which about 610,000

Proper and Fair
Taxation and Collection

About 80% of人数（者）
the total have already completed
the payments or have pledged payment.

people (75.5%) have already fully paid and about
70,000 people (9.2%) have pledged payment.

⑷ Public auctions～ Sold about 1,740 items through public auctions ～Remedy for
Taxpayer Rights

Regarding the properties seized as a means of disposition for collecting delinquent tax, the NTA sells themthrough a bid or in a public auction and the proceeds are appropriated as the collection of delinquenttaxes.
During a year between July 2021 and June 2022, 204 public auctions in total were conductednationwide. As a result, about 1,740 items (real estate properties, cars, jewelry items, etc.) were sold andthe total amount of the proceeds was about 4.3 billion yen.

LiquorAdministration

Regarding the list of items to be put subject to a public auction by the Regional Taxation Bureaus
throughout Japan and each auction schedule, you can confirm the details in the section of“Public auction
notices”(https://www.koubai.nta.go.jp/ [in Japanese]) on the NTA website.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs■ Examples of properties that were sold through public auction between July 2021 and June 2022

Statistics

NATIONAL TAX AGENCY REPORT 2023

38

Ⅲ

Proper and Fair Taxation and Collection⑸ Accurate and efficient management of claims and liabilities～ Prompt process realized by advanced use of systems ～Tax Offices use systems so that the management operation for the national tax claims and liabilities, thatarise from tax return filings and refund filings in huge volume, can be processed accurately and efficiently.
There are about 43.03 million tax payment cases each year. To efficiently process this amount of
payments, the NTA is using optical character recognition (OCR)1 for processing tax payment slips at the
Bank of Japan, and adopted online tax payment, direct payment, and others in addition to transfer tax
payment for income tax and sole proprietors’consumption tax. The NTA is also pursuing efficient andspeedy refunds by adopting online transfer procedures.

3

Response to fraudulent refund of consumption tax⑴ Background～ To protect the trust in the consumption tax system ～Among the national tax categories, consumption tax is the largest tax category in the amount of revenues.
Many taxpayers are filing tax returns and paying taxes correctly. On the other hand, there arise
fraudulent cases to receive refund of consumption taxes one after another, through abusing theconsumption tax system in that false contents are filed for fictitious transactions. Such fraudulent refund
cases of consumption tax may severely damage the trust by taxpayers in the consumption tax system, so
we are responding to them as one of the priority issues.

⑵ Status quo of fraudulent refund of consumption tax① Transition in number of tax returns～ Number of returns for refundsof consumption tax shows anincreasing trend ～Number of returns for refunds of consumption
tax filed by corporations keeps showing a large
increase trend, much larger in the increase pacevs. that for corporation tax.

■ Increase rate in number of returns
filed for corporation tax and corporate
consumption tax (FY2017=100%)（％）
150

Increase rate (%) in number of returns ﬁled for corporation tax
Increase rate (%) in number of returns ﬁled for corporate consumption tax

140
130
120
110
100

2017

2018

2019

2020

2021
（FY）

② Representative methods of fraudulent refund of consumption tax～ There are various fraud methods ～a. Cases where fictitious domestic purchases and fictitious export sales are recorded
When a business operator trades goods in Japan, consumption taxes are imposed on them (taxable
transactions); whereas when goods are sold to overseas buyers (exported), consumption taxes are waived(tax-free transactions). A business operator deducts the amount of consumption taxes on purchases fromthat on sales when filing a final return; if the calculation result is a negative amount, the amount can be
refunded. From time to time, we capture cases where abusing this system, refund is fraudulently applied
through a disguise of purchasing goods in Japan and exporting them overseas.
1 OCR processing (optical character recognition processing) converts the characters written on a tax payment slip into electronic data. This electronic data is communicated between the Bank of Japan and the NTA, providing more efficient information transfer and paperless processing.

39

NATIONAL TAX AGENCY REPORT 2023

Fictitious
supplier＜Overseas＞
Fictitious
tax-freesales

Taxabletransaction

Tax-freetransaction

Fictitious
sales
destination

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Fictitious
domestic
purchases

About the NTA＜In Japan＞

fraudulent
refundb. Cases where goods purchased at tax-free shops were resold in Japan
Tax-free shops may sell goods waiving consumption taxes to certain foreign travelers, etc. (eligible tax-

Proper and Fair
Taxation and Collection

free goods purchasers) by applying certain procedures, just like the cases of goods exports (export
merchandise shop system). To apply the system correctly, the foreign travelers, etc. must bring the goods
purchased at tax-free prices outside the country. However, in recent years, from time to time, following
malicious cases have been captured: fraudulent profits-earning cases where massive tax-free goods arepurchased for a large amount, and they are resold domestically instead of being brought outside thecountry, under the instruction of a domestic business operator (broker), etc.; similar-structure cases but

Remedy for
Taxpayer Rights

under the lead by a tax-free shop, etc.
Authentic transaction
Foreign travelers, etc.

Tax-free shop

Tax-freepurchases

Domestic
business operator(broker)

Foreign travelers, etc.

Tax-free shop

There are also
cases where fraudulent
refund is led bya tax-free shop

Fraudulent acquisitionof goods at tax-freeWrongful
resaleEnsuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Tax-freepurchases

LiquorAdministration

Fraudulent transaction

Leaving the country

Leaving the country※ Relevant acts prescribe that any tax-free goods purchaser is prohibited to resell them domestically withoutobtaining an authorization from the head of the relevant Tax Oﬃce.

⑶ Our initiatives against fraudulent refund of consumption tax～ Never miss fraudulent filing returns for refund ～To curb fraudulent refund of consumption tax, it is important not to miss any suspicious application andnot to leave any malicious taxpayer intact.
To enable proper responses to any case of abusing the consumption tax system, for each of theStatistics

stages from tax declaration to administrative guidance and investigations to collection, we are striving
to take the following measures in collaboration with relevant departments throughout the organization:① implement stricter assessment for refund returns; ② proactively conduct examinations with an eye on
malicious methods etc. (case analysis, data usage, etc.); ③ enhance the organizational structure (install a
dedicated dept, expand existing dept, etc.); ④ pursue prevention measures through PR activities, etc.

NATIONAL TAX AGENCY REPORT 2023

40

Ⅲ

Proper and Fair Taxation and Collection① Enhancing the assessment for refund returns
Refund returns for consumption tax include not only fraudulent refund, as specified above, but also thoseresulting from erroneous application of relevant acts. Therefore, when a confirmation step is necessaryreferencing various information, we endeavor to confirm the causes of each refund return or the tax
amount for return through asking for submission of needed documents or conducting onsite examinations,while suspending the payment of refund for a while. As a result, we will ensure a proper remedy if there
was an error in refund amount. On the contrary, if judged that there is no error in the application contents,
we will make a refund promptly.

② Enhancing the onsite examinations

Number of examinations

Total amount of taxes additionally collected

Methods of fraudulent refund have■ Status of consumption tax examinations carried
always evolved over time. We firstly
out against corporations that received refunds of
secure necessary human resources,
consumption tax
forgathering
various
documents（Cases）（100 million yen）
(information contained in digitalized
8,000
400
1
purchase records , etc.) and analyzing
6,721
6,553
7,000
350
5,838
them, and clearly view the target scope,
6,000
300
to ensure the implementation of strict
5,000
250
4,252
examinations. As a result, we conducted
4,000
200
3,066
about 4,300 onsite examinations
3,000
150
targeting the corporations that had
2,000
100
175
257
213
219
372
applied for refunds of consumption tax,
1,000
50
in the period between July 2021 and
0
0
2017
2018
2019
2020
2021
June 2022; and we secured additional（OY）
tax collection of about 37.2 billion yen.
In addition, during the same period, we conducted 30 onsite examinations targeting foreign travelers, etc.
who had abused the export merchandise shop system; the efforts resulted in additional tax collection of
about 1.2 billion yen in total.
Also, regarding particularly malicious criminals of fraudulent refund, the NTA conduct criminal
investigations against them and accuse them to the prosecutor for severely pursuing their criminal
responsibilities. During the period between April 2022 and March 2023, the NTA accused criminals in
16 fraud request cases for refund (amount received as refund or to be received as refund totaled 1,347
million yen), for example there was:- a case where a corporation, that runs an export merchandise shop, recorded fictitious taxable
purchases and fictitious tax-free export sales, using a disguise of purchasing cosmetic products in Japanand selling them to foreign tourists: also there was a case where multiple corporations used a disguise ofpurchasing power stones to record fictitious taxable purchases.
It is notable that the criminal of fraudulent refund, to whom the first-trial sentence was given between
April 2022 and March 2023, were all guilty, The severest penalty among them was a prison sentence of
2 years and 6 months (5 years of probation).

■ Fraudulent refund cases of consumption tax: The number of the accused and the total
amount received fraudulently
FY

2018

2019

2020

2021

2022

Number of cases accused (cases)

16

11

9

9

16

Amount of fraudulent refund received(million yen)

1,909

323

384

434

1,347

※1 The number of cases accused includes the cases where tax evasion was also committed.
※2 The total amount received fraudulently excludes additional taxes and includes refund cases where refund is yet to be received.
1 Records on purchase slips of export merchandise shops were created on paper previously. Procedures for creating such purchase slip records wererevised; the new procedures require creation of digital data for purchase slip records to be sent to the NTA. (Application of the new procedures
started with the tax-free sales on April 1, 2020; and the procedures were fully digitalized effective on October 1, 2021.)

41

NATIONAL TAX AGENCY REPORT 2023

About the NTA③ Enhancing the organizational structure

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

To properly respond to fraudulent refund cases of consumption tax, we are proactively implementing
examinations while newly installing functions and increasing headcount dedicated to consumption tax
examinations, such as Chief National Tax Examiners for Regional Taxation Bureaus and consumption tax
specialists for Tax Offices, etc. Also, we are endeavoring to strengthen the examination capabilities of
the whole the NTA organization through enabling collaborative consumption tax examinations between
general staff of Tax Offices and the specialists with expertise and know-how (such as Chief National Tax
Examiners of Regional Taxation Bureaus and consumption tax specialists of Tax Offices).

■ Web-TAX-TV: Never forgive fraudulent refund!

Remedy for
Taxpayer Rights

4

Proper and Fair
Taxation and Collection

In the program of “Web-TAX-TV”(Internet program released by theNTA), national tax examiners, who
felt suspicious about the contents of
one fraudulent refund of consumption
tax, started an examination and it
ended up with clarification of thefraud structure; the whole course isdramatized and aired in an easy-tounderstand manner. Please look at it. 【The video is here】

Addressing international transactions⑴ Background

LiquorAdministration～ Increase of public interest in international tax avoidance cases ～Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsYear after year, the economy has been getting more globalized with an increase in overseas investment
by individual investors and overseas transactions conducted by corporations. Under such circumstances,public interest has been significantly increasing on international tax avoidance cases. Those include hiding
assets overseas by the affluent class and corporations that conduct overseas transactions and reducing
tax burden using the differences in tax systems between jurisdictions.
In sufficient consideration of this situation, the NTA considers that achieving proper and fair taxation
will lead to securing trust from taxpayers.

⑵ Actions against international tax avoidance～ Active engagement with international tax avoidance cases ～To appropriately respond to international tax avoidance by the individual investors doing overseas
investments and the companies doing overseas transactions, the NTA is proactively conducting
examinations, etc., while promoting the following: (1) enhancement of information resources (strengtheningof information collection and utilization); (2) enhancement of human resources for examination(improvement and expansion of the execution system); and (3) strengthening of global networks (including
collaboration with foreign tax authorities).

Statistics① Enhancement of information resources (reinforcement of informationcollection and utilization)～D etect precisely cross-border transactions and domestic and foreign assets ～The NTA adopts the following systems to precisely detect overseas transactions and assets within andoutside of Japan, while comprehensively analyzing collected or given information and others to deal withcases of international tax avoidance adequately, for the purpose of detecting the income flows from crossborder economic activities and realizing appropriate and fair taxation.

NATIONAL TAX AGENCY REPORT 2023

42

Proper and Fair Taxation and Collection

a. Records of remittances andreceipts related to foreigncountries
remittances

receipts

7

related to foreign countries are reports to6

be submitted to Tax Offices by financial

5

institutions that conduct outward and4inwardoverseas

and

1

3

million yen. The record states the nameremittances

over

2

and address of the sender and receiver of1funds, remittance amount, etc.

0b. Foreign asset statements
Those who have foreign assets totalingover 50 million yen as of December 31
in the year are to submit a statement
describing the types and values of theforeign assets, etc. by June 30 (it was“byMarch 15”for the statements for 2022 or
earlier) of the following year to Tax Office.

6.35

2015

2016

（billion yen）
6,000
5,000
4,000

20 million yen in the year, and holdassets totaling 300 million yen or moreor securities, etc. totaling 100 million yen
or more as of December 31 in the year,or (2) those who hold assets totaling 1
billion yen or more (this was added to thetarget scope starting with the statementsfor 2023) are to submit a statement
describing the types and values of theassets, the amount of debt, etc. by June 30(it was“by March 15”for the statementsfor 2022 or earlier) of the following year
to Tax Office.

43

NATIONAL TAX AGENCY REPORT 2023

2017

2018

6.55

6.59

2019

2020
2021
（Operation year）

Total assets

Statements submitted

3,667.2 3,901.4
3,164.3 3,301.7

4,258.5

4,965.4（statements）
5,636.4 14,000
12,00010,000
8,000

3,000

6,000

2,000

8,893

9,102

9,551

9,961

10,652

11,331

4,000

12,109

1,000

2,000
2015

2016

2017

2018

2019

0
2020
2021
（Calendar year）■T he number of statements of assets and liabilities
submitted and total amount of assets reported（billion yen）

Total assets

120,000
100,000
Total assets(1) Those who earn an income of over

7.26

6.92

■ The number of foreign asset statements
submitted and total amount of assets reported

0c. Statements of assets andliabilities

7.22

6.42

Statements submittedof（million records）
8

79,353.6（statements）

Statements Submitted

95,711.9
87,589.5 86,882.5 90,651.0

104,123.8 100,000
80,00080,00060,00060,00040,00073,36073,427

72,63372,24872,21575,005

2016

2017

2018

2019

2020

2021

20,000040,00020,0000（Calendar year）

Statements Submitted

Records■ The number of Records of remittances andreceipts related to foreign countries submitted

Total assets

Ⅲd. Exchange of information undertax treaties, etc.
Regarding the cross-border transactions,

Total 4,024

4,000

the NTA acquires the necessary information

Total 3,565

3,500

for proper and fair taxation and tax

About the NTA■ Trend in number of information exchange（thousands）
4,500

Total 3,383

3,000

collection from other jurisdictions through2,500

foreign tax authorities under bilateral tax

2,000

treaties and the Convention on Mutual

1,500

Administrative Assistance in Tax Matters,

1,000

etc. (as of May 2023, Japan has 84 tax

500

treaties, etc.1 in force, which cover 153

0

3,156
2,561

838

738

831

1,027

1,030

822

868

2016

2017

2018

2019

2020

2021
（Operation year）

Proper and Fair
Taxation and Collection

jurisdictions).

Total 1,865

2,535

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

implementing information exchange with

※ Number of information exchange represents the total of provisions andreceipts in each operation year.
Orange color portion: Number of information exchange cases on financial
account information of non residents by CRS and on CbC report.
Blue color portion: Number of information exchange on request, spontaneous and automatic (for statutory records).

Remedy for
Taxpayer Rights

e. Automatic Exchange of Financial Account Information of non-residents basedon the Common Reporting Standard (CRS)
To address international tax evasion and avoidance performed through foreign financial institutions, theOECD formulated the Common Reporting Standard (CRS) which is the international standard for regularly
exchanging financial account information of non-residents (name, address, account balance, etc.) with the

LiquorAdministration

tax authorities of other jurisdictions.
Japan also exchanges relevant information with other foreign tax authorities based on this framework.
The NTA uses the information received to detect and identify financial assets located overseas andincome generated through those assets, and cross-border transactions with taxation issues after paying
attention to changes in asset balances and analyzing the information together with other documents andinformation, such as records of remittances and receipts related to foreign countries and foreign asset

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

reports.

■ Table: Automatic Exchange of Information concerning financial accounts of non-residents
under the CRS
Receipt
July 2020～June 2021

Provision

July 2021～June 2022

July 2020～June 2021

July 2021～June 2022

Number of Number of Number of Number of Number of Number of Number of Number ofjurisdictions accounts jurisdictions accounts jurisdictions accounts jurisdictions accounts
16

1,473,200

17

1,644,896

12

529,86412

536,650

North America andCentral & South America

19

117,29120

216,480

13

43,35416

40,744

EU and NIS Countries

40

313,58743

325,978

39

73,07442

67,976

Middle East and Africa

12

2,818

14

313,310

6

4,266

7

6,424

Total

87

1,906,896

94

2,500,664

70

650,55877

651,794

Statistics

Asia and Pacific

1 The term
“Tax Treaties, etc.”
refers to tax treaties, information exchange agreements, the Convention on Mutual Administrative Assistance in Tax
Matters and the private-sector arrangement with Taiwan.

NATIONAL TAX AGENCY REPORT 2023

44

Ⅲ

Proper and Fair Taxation and Collection◎ Effective use cases of the CRS information● Based on CRS information, the NTA detected the fact of failure in including officer compensation received
from a foreign corporation as well as dividend income earned from asset management using the said officer
compensation as the base fund in the tax return of the subject taxpayer.
● Based on CRS information, the NTA detected the existence of an overseas deposit account in the name of theancestor as well as the fact of failure in including the balance of the deposit account and overseas real estate
properties newly found in our examination in the tax return of the subject taxpayer.
● Based on CRS information, the NTA detected the fact that a significant amount of balance remained in a deposit
account located overseas under the name of the corporate representative and revealed the fact that earned
commission was being excluded from the corporate income deliberately by collecting that commission throughthe representative’s individual account.

f. Reporting system of information on multinational enterprises
For the purpose of understanding the global activities and the actual situation of tax payment by
multinational enterprises (MNEs), certain corporations are obligated to provide (or prepare and save) the
following information to the relevant Tax Office: (1) Country-by-Country Report [CbCR], (2) Master File,and (3) Local File1.
The ultimate parent entity of any MNE group over a certain size is obligated to provide CbCR to
the tax authority of its resident jurisdiction in Japan. In year 2021, the NTA received information on 2,246
groups from the tax authorities of 53 jurisdictions and provided information on 901 groups to the tax
authorities of 60 jurisdictions.
The NTA is effectively using such information in the process of assessing the transfer pricing risk andtax avoidance risk among MNEs.

■ Conceptual diagram of a reporting system of information on multinational enterprises

Reporting system of information on multinational enterprises
Local ﬁle〈Separately created by the parent
company and each subsidiary〉

Country-by-Country Report〈prepared by a parent company〉〈prepared by a parent company〉

Master ﬁle◇ Organization chart◇ Business strategy◇ Major competitors◇ Major transactions among relatedparties and transaction background◇ Transfer pricing calculation basis◇ Financial statements, etc.

◇ The following information on an MNEgroup by country where the parent
company and the subsidiaries arelocated:◇ Financial information including total
revenue, proﬁt (loss), tax amount,stated capital, etc.
◇ Number of employees◇ Amount of tangible assets◇ Major business activities, etc.

◇ Group organization chart◇ Business overview◇ Information on intangibles held
◇ Information concerning ﬁnancial
activities within the group◇ Financial situation for the entire
group

Provision《Preparation・Save》＊＊ Must be presented or submitted bya certain appointed day that comes
after the day when a tax examiner
requests to present or submit the
local ﬁles.
Provision of information witha Country-by-Country Report

Provision

Tax authorities
Information equivalent toa Country-by-Country Report

Foreign tax authorities

1 The ultimate parent entity of an MNE group that earns a total revenue of 100 billion yen or more in the preceding fiscal year of the ultimate parent
entity is required to submit a CbCR and a master file via e-Tax no later than 12 months after the last day of the fiscal year of the ultimate parent
entity (this applies to the fiscal year of the ultimate parent entity that begins on or after April 1, 2016).

45

NATIONAL TAX AGENCY REPORT 2023

About the NTA② Enhancement of human resources for examination (establishment and expansion ofa system for implementation areas)～ Establishment of dedicated divisions and project teams ～Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

To deal with international tax avoidance, the NTA ensures that a dedicated section be established within
the Regional Taxation Bureaus and the Tax Offices.
In addition, particularly regarding the taxpayers who are recognized to hold of assets a large amountamong the affluent class people, the NTA sets a project team targeting priority affluent taxpayers in each
Regional Taxation Bureau across the country, which collects and analyzes various kind of information by
managing the target taxpayers together with the related people and the related companies.

③ Reinforcement of global networks (cooperation with foreign tax authorities)

Proper and Fair
Taxation and Collection～ Enhance cooperation with the foreign tax authorities ～With cross-border economic activities being more active, it is essential to cooperate with the foreign tax
authorities to ensure proper and fair taxation. The NTA has been striving to enhance cooperation withforeign tax authorities.

a. Participation in global frameworks(a) Development and implementation of international agreements

Remedy for
Taxpayer Rights
LiquorAdministration

The BEPS Project was initiated by the OECD to address tax avoidance by MNEs exploiting gaps andmismatches in tax rules. Working together with the G20 members that are non-OECD countries, the final
report was publicized in October 2015.
It provides 15 Actions that equip governments with the domestic and international instruments
needed to review the overall international tax rules, address international tax avoidance by MNEs andincrease the transparency of each jurisdiction’s tax system and MNEs’business activities. The NTA has
been proactively engaged in implementing those Actions appropriately. For detailed information on each
Action, please refer to the section titled“BEPS Project”on the NTA website (https://www.nta.go.jp/
taxes/shiraberu/kokusai/beps/index.htm [in Japanese]).

(b) Participation in the OECD and other international efforts

Statistics

NATIONAL TAX AGENCY REPORT 2023

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsThe Actions in the final BEPS report need to be implemented not only in the OECD member countries
but also in many other countries and regions including emerging and developing countries. Thus,“Inclusive Framework on BEPS”has been established. As of May 2023, 142 jurisdictions including Japanare participating in this framework, and the member jurisdictions are conducting mutual assessment
about the implementation status of the recommended actions and discussing possible revisions of therecommendations. In addition, as one of the latest subjects, the members are discussing the TwoPillar solution to Address the Tax Challenges Arising from the Digitalization of the Economy (that is,establishing a taxing right for market jurisdictions under Pillar One and the global minimum tax under
Pillar Two), and model rules and administrative guidance for introducing global minimum tax in eachcountry were agreed and publicized. In Japan, Income Inclusion Rule of the global minimum tax was
legislated in the FY2023 tax reform.
Regarding exchange of information under tax treaties etc., the legal framework and the implementationin each jurisdiction are mutually assessed at the“Global Forum on Transparency and Exchange of
information for Tax Purposes”in which 168 jurisdictions participated as of May 2023.
Moreover, at the“Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC)”of
the“OECD Forum on Tax Administration,”members are taking part in activities with the objective toshare information among member countries, and to work together on common challenges, such as
international tax avoidance.
The NTA is actively participating in these activities and discussions.

46

Ⅲ

Proper and Fair Taxation and Collection

b. Utilization of a mutual tax collection assistance system
A country’s tax authority cannot exercise its public authorities outside the country’s territory for the
purpose of tax collection. For this reason, in order to deal properly with international tax collection
evasion through transfer of assets overseas, a framework of“mutual assistance in tax collection”whichenables each country’s tax authority to mutually collect tax claims of treaty partners is adopted in tax
treaties.
The NTA promotes international tax collection by actively utilizing the mutual assistance system fortax collection under treaties such as the Multilateral Convention on Mutual Administrative Assistance in
Tax Matters1.

■ Framework of mutual assistance in tax collection

Country A
Taxauthority ofCountry A① Taxation

Taxpayers

Country B④ Request for assistancein tax collection⑥ Remittance
③

Ta

xc

ol

Tax
authority ofCountry B⑤ Tax collection

le

ct

io

n

② Transfer of assets■ Web-TAX-TV “Chase overseas assets! Efforts for International Collection”
The NTA’s Internet program, “Web-TAX-TV,” (https://www.nta.go.jp/publication/webtaxtv/work.html [inJapanese]) is a drama movie about revenue officers’
work. In the movie, they conduct tax collection using
the mutual assistance system for tax collection
based on tax treaties for a malicious tax delinquency
case where a delinquent taxpayer transfers assets tooverseas and tries to avoid tax payment. Please lookat it.

【Refer to a video here.】1	It is a multilateral convention on mutual assistance for the exchange of tax-related information, tax collection and service of documents and has
become effective in 141 jurisdictions including Japan (as of June 1, 2023).

47

NATIONAL TAX AGENCY REPORT 2023

About the NTA

c. Mutual Agreement Procedure (MAP)

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

When a taxpayer makes a request regarding international double taxation arises from transfer pricing
adjustments or others, the NTA enters into Mutual Agreement Procedure (MAP)1 with relevant foreign
tax authorities based on the provisions of applicable tax treaties to resolve such double taxation. In
addition, the NTA enters into MAP for Advance Pricing Arrangement (APA)2 in view of the predictability
for taxpayers and the proper and smooth administration of the transfer pricing taxation3.
The NTA makes every effort to resolve the MAP cases appropriately and promptly. Specifically, we
have been ensuring adequate number of staff and establishing cooperative relationships with relevant
foreign tax authorities for swift and smooth MAP negotiations4.

■ Number of MAP requests received and MAP cases closed（cases）
300

Number of MAP requests received

200
150

197
170
167

187

174
141

100

195

246

219

206

200

171

155

162

166

2015

2016

2017

185
186

186

187

Proper and Fair
Taxation and Collection

250

Number of MAP cases closed

155

50

2012

2013

2014

2018

2019

2020

Remedy for
Taxpayer Rights

02021（Operation year）※ “Number of MAP requests received” consists of such requests from taxpayers and from foreign tax authorities.

Number of ﬁeld examinations conducted（cases）
Amount of undeclared income
6,000
76.3

80

83.9

78.9

67.0

70
60 51.6
50

4,000

44.1

3,000

48.7

40

2,000

30
20
10
0

5,000

4,377

4,188

5,219

5,313

4,463

2,158

2,227

1,000

0
2015 2016 2017 2018 2019 2020 2021
（Operation year）

Number of ﬁeld examinations conducted

90

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsThe NTA has set actions against affluent class andcorporations conducting cross-border transactions as apriority issue, and by pressing forward with the above
initiatives, has been actively conducting examinations
with the objective to properly deal with concealment ofassets overseas and with acts of international tax evasion.

（billion yen）
100

Income amount～A ctively conducting examinations
the affluent class and corporations
conducting cross-border transactions ～■A ctual number of income tax examinations
carried out against the affluent class

LiquorAdministration⑶ Actions against the affluent classand corporations that conduct crossborder transactions◎	Example cases of examinations on the affluent class and the enterprises
engaged in cross-border transactions● In the information obtained as assisted by the information exchange provision on the tax treaty, etc., the NTA
grasped that the entity had not included interest income received from overseas financial institutions, etc.
in tax declaration and the entity should have been applied the CFC taxation system regarding the overseas
corporation it holds.
● By confirming the actual status of the foreign subsidiary located in country/region where the corporate tax
burden is light from the local registry information, etc., the NTA grasped the fact that the CFC taxation systemshould have been applied.

NATIONAL TAX AGENCY REPORT 2023

Statistics

1 “Mutual Agreement Procedure (MAP)” is a formalized set of procedure between tax authorities of treaty partners which are provided in tax treaties.
The NTA enters into MAP upon the taxpayers request where taxpayers consider that international double taxation arise or will arise from transfer
pricing adjustments or others.
2 “APA” means the advance confirmation by a tax authority on taxpayer’s method for calculating the arm’s length price.
3 An adjustment of an enterprise’s income based on the transaction price between third parties (referred to as“arm’s length price”) when suchenterprise engages in a transaction with a related enterprise abroad, and the income of such enterprise is diminished due to the fact that thetransaction price is different from an“arm’s length price.”
4 During operation year 2021, we had 53 MAP meetings totaling 155 days.

48

Ⅲ

Proper and Fair Taxation and Collection

37.4

40
32.8

Income amount

35

800
700

26.9

30

600

25
20 16.8

500
13.7

400

15
10
5
0

300

15.0
565

900

533

862

859

936

517

477

2015 2016 2017 2018 2019 2020 2021

200
100
0

（Operation year）（billion yen）

800

Number of ﬁeld examinations conducted
Amount of undeclared income related （cases）
to cross-border transactions

18,000696.8

70015,000600
12,000

500

367.0

400

9,000

300 230.8 236.6

241.1
153.0 161.1

200
100
0

6,000
3,000

13,044

13,585

16,466

15,65013,116

4,569

6,676

2015 2016 2017 2018 2019 2020 2021

0

Number of ﬁeld examinations conducted

45

Number of ﬁeld examinations conducted（cases）
Amount of undeclared income
1,000
41.1

Number of ﬁeld examinations conducted（billion yen）

■ Actual examination of corporation tax
related to cross-border transactions

Income amount■A ctual number of income tax examinations
carried out against the affluent classrelated to cross-border transactions（Operation year）～ Defining conditions for application of transfer pricing taxation ～As company activities become increasingly globalized, more transactions are becoming subject to thetransfer pricing taxation, and the details of the transactions are becoming more complex. To increase
predictability for taxpayers, the NTA has announced its administration policy on the operations and its
application requirements, by updating directive on the interpretation of laws and administrative guidelines
relating to the transfer pricing taxation. In case of the Advance Pricing Arrangement (APA), the NTA has
been providing an environment where taxpayers can smoothly apply for this APA, such as engaging in
consultations prior to accepting requests for APA.

5

Cooperation with foreign tax authorities⑴ Technical cooperation for developing countries～ Technical cooperation for developing countries with a focus on Asia ～Under the framework of technical cooperation by the Official Development Assistance (ODA), the NTA
is actively providing technical cooperation to developing countries, focusing on Asian countries. The
aims are to improve tax administration of developing countries and foster understanding Japan’s tax
administration. In FY2021, since it was difficult to invite trainees from foreign countries and to dispatch
lecturers to overseas due to the Covid-19 pandemic just like in the previous fiscal year, we made efforts
to hold as many trainings as possible, using online systems, etc.

Practicum at the NTA

49

NATIONAL TAX AGENCY REPORT 2023

About the NTA

Overview of technical cooperation
1 Dispatch of officials to developing countries

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Based on the requests received from developing countries’tax authorities, the NTA dispatches its officials
for trainings held in those countries. In FY2022, we gave lectures through dispatching our officials to the tax
authorities of Indonesia, the Philippines, and Vietnam.
Moreover, with a view to giving continuous advice on tax administration to developing countries, the NTA
also dispatches its officials as long-term experts of Japan International Cooperation Agency (JICA). In FY2022,
they worked in Lao PDR, the Philippines, and Vietnam.

2 Trainings conducted in Japan⑴ International Seminar on Taxation（ISTAX）

Proper and Fair
Taxation and Collection

This is the seminar for tax officials from several developing countries, and gives lectures on Japan’s tax
system and tax administration. It has two courses: “General” for mid-career officials, and “Advanced” for upper
management- level officials.

⑵ Country-Focused Training Courses
The courses target tax officials from a certain developing country, and give lectures based on its requests.

⑶ International Taxation for Asian Countries

Remedy for
Taxpayer Rights

This course targets tax officials from Asian developing countries and gives lectures on “international taxation.”⑷ Practicum at the NTA
This course targets tax officials from developing countries who are studying at Japanese graduate schools(master’s courses) on a scholarship from the World Bank, etc., and gives lectures on Japan’s tax system andtax administration. In FY2022, six students in total, enrolling in graduate schools of National Graduate Instituteof Policy Studies, Hitotsubashi University, and Meiji University, participated in this course.

（number of countries, people）

2018

2019

2020

2021

2022

Countries

14

16

－

14

3

Participants

14

16

－

14

3

International Seminar on Taxation(ISTAX) (Advanced)

Countries

9

11

－

10

5

Participants

9

11

－

10

5

International Taxation for AsianCountries
Practicum at the NTA

Countries

6

3

1

2

4

Participants

86

32

15

136

355

Countries

5

7

－

6

4

Participants

7

7

－

11

6

Countries

11

12

7

8

5

Participants

17

15

9

9

6

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsInternational Seminar on Taxation(ISTAX) (General)

Country-Focused Training Courses

LiquorAdministration■ Status of trainings conducted in Japan※ Includes the number of online courses from FY2020 onward.

Statistics

NATIONAL TAX AGENCY REPORT 2023

50

Ⅲ

Proper and Fair Taxation and Collection⑵ Other technical assistance～ OECD Asia-Pacific Academy for Tax and Financial Crime Investigation ～OECD Asia-Pacific Academy for Tax and Financial Crime Investigation, which the NTA holds in collaboration
with OECD, is the training program regarding investigation techniques on tax crimes, money laundering,and international cooperation, etc.
Since the first program at Wako Campus of the National Tax College in May 2019, we held 11
programs in total including those held online as of the end of FY2022.

⑶ Cooperation among countries for tackling the challenges in tax
administrations
In order to cooperate and share experiences with foreign tax authorities, the NTA actively participates ininternational conferences including the OECD Forum on Tax Administration and the Study Group on Asian
Tax Administration and Research.

a. The OECD Forum on Tax Administration (FTA)The FTA is a forum for Commissioners from 38 OECD and 14 non-OECD countries (as of May 2023) toshare their knowledges and experiences in a wide range of fields in tax administration. The 15th Plenary
Meeting was held in Sydney (Australia) in September 2022, where the commissioners exchanged theiropinions on the issues in implementation of the new international taxation agreement, the continuous
efforts toward digitalization of the tax administrations.

b. Study Group on Asia-Pacific Tax Administration and Research (SGATAR)
SGATAR is comprised of tax authorities of 18 countries and regions in Asia-Pacific. This is a forum fordiscussions on cooperation and sharing of knowledge in the region.
In October 2022, the 51st SGATAR meeting was held in Kuala Lumpur, Malaysia, with the discussion
about efforts to address new challenges in tax administration with focus on human resources andorganizational structure, and improvement of voluntary compliance, etc.

51

NATIONAL TAX AGENCY REPORT 2023

Ⅳ Remedy for Taxpayer Rights
About the NTA～ The request for review system for national tax ～When a taxpayer is dissatisfied with the action taken by the District Director of the Tax Office for taxationand delinquent tax, the said taxpayer may file a request for a review, for example to cancel that disposition.
This system of request for review is a procedure to simply and quickly protect taxpayer rights and interests.
In principle, a taxpayer who objects to a disposition shall first file a request for review before bringing alawsuit in court “the principle of petition after administrative protest”.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

A request for review can be a request for re-examination to the District Director of the Tax Office,etc., or a request for reconsideration to the Director-General of the National Tax Tribunal, and a taxpayer
can choose either of these. When a taxpayer chooses a request for re-examination but is still dissatisfied
with the disposition determined for the request for re-examination, the taxpayer may file a request forreconsideration.

Proper and Fair
Taxation and Collection■ Overview of the request for review system for national tax
If dissatisﬁed with the decision by the District
Director of the Tax Oﬃce or Regional Commissioner

If no decision on arequest for re-examination
is made within 3 months

within 3 months

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

within 3 months

Decision onrequest forre-examination

LiquorAdministration

Request for re-examination to
the District Director of
the Tax Oﬃce or Regional Commissioner

Remedy for
Taxpayer Rights

within 3 months

Request for Reconsideration

Request forre-examination

Request for Reconsideration

Request for reconsideration orrequest for re-examination bychoiceIf dissatisﬁed with the decision
made by the Registrar or
Minister of Land, Infrastructure,
Transport and Tourism, etc.
regarding registration andlicense tax and motor vehicle
tonnage tax, respectively

within 1 month

Request for reconsideration to the Director-General of the National Tax Tribunal

Decision

If no decision on arequest for reconsideration
is made within 3 months

within 6 months

Statistics

Litigation for invalidating the original decision, etc. (district court)

NATIONAL TAX AGENCY REPORT 2023

52

Ⅳ

Remedy for Taxpayer Rights⑴ Request for re-examination～ Simplified, prompt and fair remedies for taxpayer rights ～A request for re-examination is intended for review by the District Director of the Tax Office of its own
disposition. And it aims to pursue the remedy of the rights and interests of citizens and to ensure theappropriate operation of public administration with simplified, prompt and fair procedures. Thus, whena request for re-examination is filed, we endeavor to listen intently to taxpayers’
claims, conduct fairexaminations and consideration, and process requests appropriately and expeditiously.

⑵ Request for reconsideration～ Remedy for taxpayer rights by a fair third-party institution ～Request for Reconsideration is a system whereby when a taxpayer is dissatisfied with a disposition
decision by the District Director of the Tax Office, the taxpayer can file an objection with the DirectorGeneral of the National Tax Tribunal. Missions of the National Tax Tribunal are as follows: pursue remedyof the legitimate rights and interests of taxpayers as an organization of a fair third party; and contribute toensuring the proper operation of tax administration. Thus, for such request, it undertakes an examination,
discusses it, and renders a verdict on it.
It is noteworthy that the Director-General of the National Tax Tribunal may make a decision without
being bound to the legal interpretation indicated in the NTA Commissioner’s notice, and the decisions will
not be more disadvantageous to taxpayers than those made by the District Director of the Tax Office. The
decision is a final ruling given within the NTA, against which the District Director of the Tax Office, etc. are
not entitled to file litigation, because of dissatisfaction with this decision.
※ When a taxpayer is dissatisfied with the action taken by the NTA Commissioner, the taxpayer may file a request for reconsideration against the
NTA Commissioner.

⑶ Litigation～ Remedy by law ～Even after the decision by the Director-General of the National Tax Tribunal, taxpayers who remain
dissatisfied are entitled to file litigation.

Response to complaints from taxpayers
The NTA receives from taxpayers such voices as complaints, dissatisfactions, or inquiries on problems they haveregarding other operations of Tax Offices, Regional Taxation Bureaus, and the NTA or the tax matters in general, in
addition to request for review of disposition decisions made by the NTA. Concerning such complaints, etc. received
from taxpayers, the NTA strives to respond promptly and adequately from the viewpoint of each taxpayer as wellas to ensure that taxpayers properly understand and rely on the tax administration.
The NTA appoints Taxpayer Support Officers to properly respond to taxpayer complaints on disposition
decisions that might affect taxpayers’rights and interests, for example by explaining the procedures to remedy
taxpayer rights.

53

NATIONAL TAX AGENCY REPORT 2023

About the NTA⑷ Trend in remedies for taxpayer rights～ The NTA is striving to finish processing requests for re-examination within 3months and requests for reconsideration within 1 year in principle. ～a. Request for re-examination
The NTA has set the standard length of deliberations for a request for re-examination to 3
months and is striving to finish processing requests for re-examination within 3 months inprinciple.

● Result

Result in FY2022: 99.5% of requests for re-examination were closed within 3 months. 1,371
re-examinations were requested in FY2022 (1,226 on taxation and 145 on tax collection). Of
these, 4.6% of taxpayer claims were approved in whole or in part.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration● Targetb. Request for reconsideration
The NTA and the National Tax Tribunal have set the standard length of deliberations fora request for reconsideration to 1 year and are striving to finish processing requests forreconsideration within 1 year in principle.

● Result

Result in FY2022: 95.4% of requests for reconsideration were closed within 1 year. There were
3,159 requests for reconsideration in FY2022 (3,018 on taxation and 141 on tax collection).
Of these, 7.1% of taxpayer claims were approved in whole or in part.

Proper and Fair
Taxation and Collection● TargetRemedy for
Taxpayer Rights

c. Litigation
For litigation, 186 cases were closed in FY2022 (157 on taxation, 25 on tax collection, and 4 on the
National Tax Tribunal). Of these, 5.4% of taxpayer claims were approved in whole or in part.
※ The NTA and the National Tax Tribunal provide information such as overviews of the requests for re-examination, the requests for reconsiderationand litigation and cases of decisions on requests for reconsideration. These are on the NTA website and on the National Tax Tribunal website(https://www.kfs.go.jp [in Japanese]).

■P
 ercentage of processed requests forreconsideration within 1 year, and numberof processed requests for reconsideration（cases）
4,000（cases）
4,000

2,150
,
104
1,726
173

80

99.5

2,923
136

3,000
2,475

98.0

1,513
,
124

1,553

2,046

1,389

12.3

12.3

12.4

957
10.0

1,198
,
46
1,152

1,371
,
145
1,226

234

1,000

4.6
6.9

0
2016 2017 2018 2019 2020 2021 2022
（Fiscal year）

12.3

0

2,282
80

60

Percentage of processed cases
Percentage of approval
Number of cases (taxation-related)
Number of cases (tax collection-related)
2,295

2,787

8.2

7.4

2,736
13.2

2,177

10.0

2,202

80

3,018

40

20

13.0

7.1
0
2016 2017 2018 2019 2020 2021 2022
（Fiscal year）※ Percentage figures of processed requests in FY2017
onward were calculated by excluding the case suspension
period for such cases as MAP cases and public prosecutionrelated cases. Also, for FY2021, calculation was done
excluding not only the above period but also the period
when examination and/or discussion were interrupted due
to natural disasters, etc. or the conditions of those whorequested for reconsideration.

NATIONAL TAX AGENCY REPORT 2023

Statistics※1 Percentage figures of processed cases were calculated
excluding MAP(Mutual Agreement Procedure)cases,publicprosecution-related cases and international taxation cases,
as well as, in FY2020 and ensuring years, cases in which reexamination requests could not be processed within threemonths due to interruptions by natural disasters, etc. or
taxpayers’conditions.
※2 Pursuant to the revision of related laws in June 2014,“objection”was renamed to “request for reconsideration”
and it took effect in April 2016.
※3 Data on numbers include the number of “objections”as well.

1,725

95.4
3,159
141

83.5

2,328
151

1,959

40

20

2,846
110

180

2,000

999
42

6.8

99.2

92.6

60

1,000
1,585

98.3

91.1

1,805
220

0

100.0 99.5

Percentage of processed cases
Percentage of approval
Number of cases (taxation-related)
Number of cases(tax collection-related)

3,000

2,000

99.9

99.5

(％)
100

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

96.6

95.6

(％)
100

LiquorAdministration■ Percentage of processed requests for reexamination within 3 months, and numberof processed requests for re-examination

54

Ⅴ Liquor Administration～ Taking various measures for the development of liquor business ～Liquor products are important for fiscal management in that liquor tax is imposed on them. Since stable
tax revenues can be expected from liquor products, they play an important role in the fiscal policy of theJapanese government.
The NTA is making proactive efforts for the sound development of liquor business, not to mention forrealizing the proper and fair taxation of liquor tax.
In order to revitalize the liquor industry and promote the exports, the measures for the domestic
market and the measures for export promotion are used as the two pillars for the objectives. Morespecifically, we look to the improvement in domestic and overseas visibility as well as provide support for
cultivating overseas sales channels. (Please also reference the “Sake no Shiori(the bookmark of liquor)”
uploaded to the NTA website for the initiatives by the NTA.)“Sake no Shiori”

1

Situation of Liquor Industry⑴ Situation of domestic market
The taxable volume of liquor has declined since it peaked in FY1999, due to decreasing birthrate,
accelerated aging, and population decrease, etc. Beer, in particular, has declined considerably, becauseof the shift of consumption from beer to low-priced liquors such as sparkling liquor and chuhai.

■ Changes in taxable volume（ten thousand kl）
1,017
1,000

Changes in taxable volume
Volume peaked in FY1999 (10,170,000 kl)
Volume of FY2021 was below 80% of its peak.
Other
799

Fruit wine andsweet fruit wine
Whiskey andbrandy

800
40
39
600

100

Sake
Pot distillation
Japanese spirits(Shochu)Continuous
distillation Japanesespirits (Shochu)

Spirits

400

200

0

1970 75 80 85 89

93

98※ “Other” included “Spirits” in 1985 and before.
Source: National Tax Agency Annual Statistics Report

55

NATIONAL TAX AGENCY REPORT 2023

2003

08

13

244

Liqueurs

29

Other brewed
liquors60

Sparkling liquor

194

Beer

2021
（Fiscal year）

About the NTA⑵ Situation of the Japan-made liquor exports
In 2022, Japan-produced liquor exports amounted to about 139.2 billion yen (21.4% increase over prioryear), showing a continued high performance following 2021 when 100 billion yen line had been exceeded
for the first time in history.

139,203（million yen）
140,000

Other

130,000Wine

120,000

Shochu114,658

Gin and Vodka

1,746

110,000

90,00080,0002,172

Beer
Liqueurs
Sake
Whiskey

70,00061,82754,50360,00039,02940,00025,09729,35142,996

1,571

10,0000

10,524

18,6792014

56,06022,232

14,011

15,581

10,378

10,844

13,63914,977

2015

2016

2017

2018

46,144
19,451

27,115

2019

2020

2021

2022

LiquorAdministration

5,850

40,17824,141

11,507

2013

1,201

1,537

1,466

1,601

3,980

1,560

47,48971,03023,412

1,707（出典：財務省貿易統計）

20,0001,530

66,083Remedy for
Taxpayer Rights

50,00030,000Proper and Fair
Taxation and Collection

100,000

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration■ Trend in the export amount of liquor which made in Japan

Source: “Foreign Trade Statistics” by the Ministry of Finance2Efforts of the NTA

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs～ Promotion of liquor business ～Given the current status and challenges, the NTA is making efforts to help the domestic and overseas
liquor markets expand and help them further grow and develop in a sound manner (Sake Report 3).

⑴ Efforts for cultivating overseas markets (export promotion)
In the “Implementation strategy to expand exports for agricultural, forestry and fishery products and food”(https://www.nta.go.jp/taxes/sake/yushutsu/01.htm#a01 [in Japanese]) (decided by the Headquarters
for Revitalizing Agriculture, Forestry and Fisheries, and Regions in December 2020), sake, whisky, andauthentic shochu/awamori were positioned as the three priority export items in the liquor category,where the target countries, targeted export volume, etc. were set for each item. We help them raise thevisibility and expand the sales channels towards the achievement of the targets for such three priority
items.

Statistics

a. Support for cultivating sales channels
To further expand the exports of Japan-produced liquor products, we exhibited Japan-produced liquor
products at a Japan pavilion in large-scale overseas trade EXPOs. Also, we held trade fairs with certain
overseas buyers that had been cultivated through liquor export coordinators.
NATIONAL TAX AGENCY REPORT 2023

56

Ⅴ

Liquor Administrationb. Enhancing visibility
We implemented promotion for Japan-produced liquor products at the Japan House and invited liquor
specialists, sake breweries, media, influencers, and consumers to experience the different types of sakeand deepen their understanding towards sake.
In addition, using the “Subsidies for the business budget supporting overseas deployment of Japanproduced liquor products (Subsidies for overseas deployment and sake brewery tourism),” we aresupporting the initiatives by sake business operators, in terms of making tourist spots based on sakebreweries and creating sake brewery tourism plans.

ｃ. Support for creating higher values for and differentiation of products using subsidies
Using the “Subsidies for the business budget supporting overseas deployment of Japan-produced liquor
products (Subsidies for overseas deployment and sake brewery tourism)” (reposted), we are supporting
the initiatives by liquor business operators, in terms of creating higher values for Japan-produced liquor
products.
In addition, using the “Subsidies for the business budget supporting new market cultivation (Frontier
subsidies),” we are supporting the aggressive initiatives by liquor business operators to cultivate newmarkets whether domestic or overseas, for helping resolve their structural challenges (decline in domestic
demand, etc.).

d. Expanding usage of Geographical Indications (GI)1 to enhance brand value
We are engaged in designating and expanding usage of GI for it, from the perspective of enhancing brandvalue of liquor products within and outside Japan (For the latest designation status, see the “List of GIs for
liquor products” on the NTA website). On that, we are producing pamphlets and coordinating for relevant
events such as seminars.

e. Authorization of liquor product associations based on the Export Promotion Act
Based on the Export Promotion Act, in December 2022, we authorized the Japan Sake & Shochu Makers
Association as a “liquor product association” for sake, authentic shochu and awamori.

f. International negotiations for abolishing tariffs and import restrictions
To further improve the export environment for Japanese liquor business operators, we are discussing thefollowing through international negotiation: abolishment of tariffs and import restrictions; protection ofGIs; and efforts toward the mutual equivalency recognition of organic alcohol beverages.
Also, regarding the import restrictions imposed by certain countries on Japan-produced goods
following the nuclear power plant accident at TEPCO Fukushima Dai-ichi due to the Tohoku Mega Quake,we will keep requesting the relevant governments to abolish those restrictions.

⑵ Efforts to inscription of Japanese sake, shochu, and awamori, etc. on
the Representative List of the Intangible Cultural Heritage of Humanityof UNESCO.
We are making efforts for protection and inheritance of the traditional sake-making tech concerning
Japanese sake, etc. as well as toward the inscription of the Representative List of the Intangible Cultural
Heritage of Humanity of UNESCO, through collaboration with the Agency for Cultural Affairs, the“Preservation Society of Japanese Koji-based Sake making Craftsmanship,” etc.
In December 2021, this was registered in the name of “Traditional knowledge and skills of sake-making
with koji mold in japan” with the Registered Intangible Cultural Property. After that, it was proposed to
UNESCO in March 2022. (It was re-proposed in March 2023.)

1 Under the Geographical Indication (GI) system, in the case that the characters of a liquor product or agricultural product unique to a specificproduction area (quality, recognition in society, etc.) have been established, only the products that are produced within the production area andfulfills certain production standards can exclusively use the name of its production area (the name of region as a brand).

57

NATIONAL TAX AGENCY REPORT 2023

About the NTA⑶ Technological assistancea. Promotion of the spread of brewing technology, etc.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Each Regional Taxation Bureau has the Office of Analysis and Brewing Technology (including Chief
Technical Officer of the Okinawa Regional Taxation Office) as its technological function to promote thespread of advanced technologies, etc., including research results of the National Research Institute ofBrewing (NRIB)1, through activities such as giving advice and consultation to liquor manufacturers, holding
competitions, research workshops, etc. and dispatching officials to seminars, appraisals, etc., held bysake-making associations, etc.

b. Support in the quality and safety of liquor

Proper and Fair
Taxation and Collection

With the aim of ensuring the safety of liquor in all stages from liquor production to consumption andenhancing the level of quality, we give technological assistance concerning improvement, etc. in the
production process of liquor and confirm safety through actions including research and provision of
information on the radioactive substances of liquor.

c. Efforts by the National Research Institute of Brewing (NRIB)

Remedy for
Taxpayer Rights

Serving as an entity to cover the technological base for the development of the liquor industry, the
NRIB conducts studies for increasing the brand value of Japanese liquor products, strengthening thetechnological base of liquor production, etc. as well as actively pursues the measures to develop personnel
for the liquor industry (lectures on liquor brewing, etc.) and outreach activities.

⑷ Measures for small and medium enterprises (SMEs)

LiquorAdministration

In order for the liquor industry, of which SMEs account for the majority, to adjust to change in the socialand economic conditions properly, the NTA supports diverse efforts by the industrial associations, suchas the modernization project by the Japan Sake & Shochu Makers Association.
Moreover, in coordination with related government offices and organizations, local governments andothers, the NTA provides business operators and industrial associations with information on governmental
measures for SMEs (consultation desks, subsidies, the tax system, financing, etc.) to promote the use of
these measures.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs⑸ Establishment of a fair trading environment of liquor
The NTA is striving to ensure fair trading through using “The Standards for the Fair Trading of Liquor2”(https://www.nta.go.jp/taxes/sake/koseitorihiki/mokuji.htm [in Japanese]) for dissemination to andenlightenment for liquor companies as well as through conducting surveys on the actual situation of liquor
trading. The standards were revised in March 2022 (took effect in June 2022), referencing the results ofa survey conducted after the enforcement of the standards in June 2017.

⑹ Response to social demands
a. Promotion of resource recycling
The beer industry promotes the “Action Plan for Achieving a Low-carbon Society” which was formulated
based on the “Plan for Global Warming Countermeasures”(determined by the Cabinet in October 2021).
The Liquor Subcommittee under the National Tax Council conducts evaluation and verification of suchendeavors.

Statistics

1 The NRIB’s missions during the “the fifth term of the medium-term objective period” from FY2021 to FY2025 is (1) to strive to develop the liquor
industry, (2) to strive for the appropriate application of liquor tax laws, and (3) to make efforts as the national center for liquor, and they conductvarious duties based on these missions.
2 These standards need to be complied with by all liquor companies (production, wholesale, and retail) to ensure fair transactions for liquor
products. They require the following: ① it is not allowed to sell liquor products at a price lower than the total costs of sale on a continuous basis
without a justifiable reason; and ② it is not allowed to execute a deal that might be significantly detrimental to the own liquor business or to theliquor business of other liquor companies.

NATIONAL TAX AGENCY REPORT 2023

58

Ⅴ

Liquor Administration

b. Measures to prevent those under the age of 20 from consuming alcoholWith the purpose to prevent consuming alcohol under the age of 20, in addition to preparation of
educational posters and pamphlets, the NTA designates April of each year as the “Month to emphasize
prevention from consuming alcohol under the age of 20,” and carries out enlightenment activities incoordination with relevant ministries and agencies, and industry associations.

c. Measures against Health Problems Caused by Alcohol
Considering “The Basic Act on Measures against Health Problems Caused by Alcohol”(the second plan,from April 2021 to March 2026) formulated based on “The Basic Law on Measures to Prevent Damage
to Health due to Alcohol” enforced in June 2014, etc., the NTA implements initiatives for preventing
from consuming alcohol under the age of 20 and health problems due to alcohol in cooperation andcoordination with relevant ministries and agencies as well as associations in the liquor industry.

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NATIONAL TAX AGENCY REPORT 2023

Ⅵ Ensuring Proper Administration of Services by CPTAs
About the NTA～ Missions of Certified Public Tax Accountants (CPTAs) ～1

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Certified Public Tax Accountants (CPTAs) and CPTAs Corporations (hereinafter referred to as “CPTAsetc.”) are professional specialists on taxes. Their public mission is to respond to the trust of a taxpayer inline with the principles of the self-assessment system, and to achieve proper tax compliance as provided
for in the tax laws and regulations, based on their independent and fair standpoint.
As of the end of March 2023, 80,692 persons were registered as CPTAs, and there were 4,844 CPTAs
Corporations.

Services and roles of CPTAs～ Support taxpayers and boost self-assessment system ～Remedy for
Taxpayer Rights

2

Proper and Fair
Taxation and Collection

CPTA services are tax proxy, preparation of tax documents, and tax consultation service. These operations
must not be performed by persons other than CPTAs1, even at no charge. At the same time, CPTAs are
required to fulfill various obligations and responsibilities. For example, they are prohibited from providing
tax evasion consultation and engaging in conduct which harms the credibility or dignity of CPTAs.
If using services of CPTAs, taxpayers can properly file returns and pay taxes. In addition, because
corporations and sole proprietors often ask CPTAs to process accounting books or to compile financial
statement, they also play important roles in promoting tax return filings and correct bookkeeping that
constitutes the basis for the filing.

Coordination and cooperation with CPTAs’Associations, etc.

～ Conduct consultations and exchange opinions about a wide range of issues ～LiquorAdministration

To achieve the proper and smooth administration of the self-assessment system, CPTAs undertaking
the public mission play extremely important roles. Therefore, we are endeavoring to coordinate andcooperate with the Certified Public Tax Accountants’
Associations and Japan Federation of Certified
Public Tax Accountants’
Associations (hereinafter referred to as“CPTAs’
Associations, etc.,”) for example,
by conducting consultations and exchanging opinions with CPTAs’
Associations etc. about a wide range
of issues.
Specific activities include (1) and (2) below.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs⑴ Promotion of the document attached by CPTAs～ Further promoting and establishing the attached document regarding the
calculation and consultation ～Statistics

With the document attachment system as provided for in the Certified Public Tax Accountant Act (https://www.nta.go.jp/taxes/zeirishi/zeirishiseido/kentoukai/02.htm [in Japanese], hereinafter referred to as“CPTA Act”) CPTAs may attach certain documents on the items calculated in preparing a tax return andthe documents on the consultation subjects covered by the CPTAs (hereinafter the“attached documents.”)
This system requires that if a Tax Office intends to conduct a tax examination for a taxpayer having
filed a tax return with the attached documents by notifying the taxpayer of the date, time and place of theexamination in advance, the CPTAs of the taxpayer must be given an opportunity to state an opinion on
the items described in the attached documents, before the taxpayer is notified.
Regarding the attached documents, the NTA is actively consulting with CPTAs’
Associations, etc. withan aim to enhance the content of attached documents and raise the share of the returns with suchattachments. Respecting this system, the NTA is striving to disseminate it and have it used by more
taxpayers.
1 In compliance with Article 51 of the Certified Public Tax Accountant Act, CPTA services can also be performed by lawyers and legal professional
corporations that have notified their practice of CPTA services to the Regional Commissioner with jurisdiction over the district where CPTA services
are to be provided, as well as CPTAs and CPTAs Corporations.

NATIONAL TAX AGENCY REPORT 2023

60

Ⅵ

Ensuring Proper Administration of Services by CPTAs⑵ Promotion of e-Tax usage～ Collaboration and cooperation towards the realization of electronic filing ～Concerning promotion of use of e-Tax, the roles played by CPTAs are significant, so the NTA is regularly
exchanging opinions with the Japan Federation of Certified Tax Accountants’
Associations and requesting
it for cooperation to raise the use rate of e-Tax. As such, the NTA is eager to keep the collaboration andcooperation with CPTAs associations, etc., towards the realization of digitalized procedures for tax return
filing.

3

Appropriate guidance for and supervision of CPTAs～ Prevent violation of the CPTA Act and take strict action against those who
violated ～For ensuring the proper operation by CPTAs, the NTA utilizes every opportunity to alert people andprevent violation of the CPTA Act by CPTAs. Also, the NTA conducts appropriate examinations regarding
the breach cases of the CPTA Act. We take strict disciplinary action against the CPTAs who violated
the Act and publicly announce the names of such CPTAs. In addition, for the so-called “fake CPTAs”
who conducts CPTA services without a license, we strictly deal with them including accusation to theprosecutor.
The NTA discloses the names of disciplined CPTAs in the official gazette and via the NTA website.

■ Number of disciplinary actions（cases）

fiscal year

2018

2019

2020

2021

2022

cases

51

43

22

21

13

CPTAs’Associations and Japan Federation of CPTAs’Associations
In order to improve the work of CPTAs, CPTAs’
Associations are designated in the CPTA Act asorganizations which provide guidance, liaison andHokkaido CertiﬁcatedPublic Tax Accountants’supervision to CPTAs. There are now 15 CPTAs’
Association
Associations throughout Japan. CPTAs’Associations
Tohoku Certiﬁcated Public
engage in a wide range of activities, including ①
Hokuriku Certiﬁcated Public
Tax Accountants’Association
Tax Accountants’Association
training to enhance the qualities of CPTAs, ② dispatch
Kanto-Shinetsu Certiﬁcated Public
Tax Accountants’Association
Kinki Certiﬁcated Public Taxof lecturers for tax workshops in elementary, junior
Accountants’Association
Chibaken Certiﬁcated Public
and senior high schools, universities, etc. to fulfill theTax Accountants’Association
Chugoku CertiﬁcatedTokyo Certiﬁcated Public Tax
PublicTax
Accountants’tax education and ③ free tax consultation for small
Accountants’Association
Association
Tokyo-chiho Certiﬁcated Public
taxpayers.
Kyushu-Hokubu CertiﬁcatedTax Accountants’Association
The Japan Federation of Certified Public Tax Public Tax Accountants’
Tokai
CertiﬁcatedPublic Tax
Association
Accountants’Association
Accountants’Associations (https://www.nichizeiren.or.
Nagoya Certiﬁcated Public Tax
Minami-Kyushu
Accountants’Association
Tokyo-chiho Certiﬁcated Publicjp/eng/) is the only organization in Japan as certified Certiﬁcated Public Tax
Shikoku Certiﬁcated Public
Tax Accountants’Association
Accountants’Association
Tax Accountants’Associationby the CPTA Act. The Federation provides guidance for,
Okinawa Certiﬁcated Public
Tax Accountants’Association
communicates with, and supervises CPTAs’Associations
and CPTAs. It also handles the operation to register
members, and conducts institutional surveys on CPTAs.

61

NATIONAL TAX AGENCY REPORT 2023

Ⅶ Results Evaluation (Evaluation of Policies）
About the NTA⑴ The purpose of Results Evaluation

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

The purpose of the “Results Evaluation for the Targets to Be Achieved by the NTA”
is to:① clarify the NTA’s missions and objectives to be achieved and fulfill accountability to citizens andtaxpayers,② continue promoting more efficient, high-quality tax administration that meets the needs of the times
and③ improve operations, enhance the motivation of staff, and revitalize the organization.
Regarding the results evaluation for the NTA, “Results Evaluation Implementation Plan”(http://www.
mof.go.jp/about_mof/policy_evaluation/nta/index.html [in Japanese]) (hereinafter the“Implementation
Plan”）and “Results Evaluation Report”(http://www.mof.go.jp/about_mof/policy_evaluation/nta/index. html
[in Japanese]) are created and publicly released every year.

In order to accomplish the NTA’s missions “Help taxpayers properly and smoothly fulfill their tax duties,”
the NTA’s three duties provided in Article 19 of the Act for Establishment of the Ministry of Finance wereset as the targets to be achieved (Results Target (higher level) 1 through 3).
In the Implementation Plan for operation year 2021, five Sub-results Targets (lower level) and seven
Performance Targets (hereinafter “Results Targets, etc.”) were set for the Results Target (higher level) 1.

Remedy for
Taxpayer Rights⑶ Evaluation method for Results Targets, etc. and evaluation results

LiquorAdministration

Regarding the Results Targets etc., means for achieving them are set as the “Measures.”Each Measurefor operation year 2021 is set by combining some quantitative measurement indicators (42) and somequalitative measurement indicators (38), to evaluate the implementation status depending on its content.
Then, each “Measure”is evaluated based on the level of achievement for each indicator. Evaluation of theResults Targets etc. is done based on the integrated evaluation of the “Measures”for the Result Targets etc.
The evaluation results for operation year 2021 are shown by the score codes for respective Targets
in [ ] of the diagram below. Such evaluation results should be accurately reflected in the following
operations, to ensure efficient and high-quality tax administration through PDCA cycle.

※ The above figures in parentheses for the measurement indicators represent the data for operation year 2021

■ System diagram of “the NTA’s missions” and “Results Targets, etc.” (for operation year 2021)

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAsThe Missions of the NTA

Help taxpayers properly and smoothly fulﬁll their tax duties

Proper and fair taxation and collection of internal taxes【Ｂ】
Results Targets（lower level）1-1

Proper tax
administration【Ａ】

Results Targets（lower level）
1-2

Digitaltransformation for
tax administration【Ａ】

Results Targets（higher level）2

Results Targets（higher level）3

Ensuring
Promotion
properof sounddevelopment administration
Enhancement
Proper examination Measures forof Services forand collection, etc. internationalization of the liquor of services bybusiness【Ａ】 CPTAs【Ｓ】
Taxpayers【Ａ】 and remedy for【Ａ】
taxpayer rights【Ｂ】

Results Targets（lower level）1-3

Results Targets（lower level）1-4

Results Targets（lower level）1-5【Performance Target 1-2-1】 【Performance Target 1-3-1】 【Performance Target 1-4-1】
Promotion of tax procedures Enhancement of public
Achieving of proper tax ﬁling and conducting examinations
hearing and public relations
by online【Ａ】
and guidance【Ａ】【Performance Target 1-2-2】 activities, etc.【Ａ】【Performance Target 1-4-2】【Performance Target 1-3-2】 Tax collection by the due date and strict and appropriate
Higher eﬃciency andAppropriate response tosophistication of operation
implementation of disposition for delinquent tax【Ａ】
consultations etc.【Ｓ】
through using digital【Ａ】【Performance Target 1-4-3】
Measures for the request for review【Ｂ】

Statistics

Performance
Targets

Results Targets

Results Targets (higher level) 1※ The NTA evaluates by indices of the following 5 stages about the achievement of each target.
【S+】Target achieved in excess【S】Target achieved【A】Considerable progress【B】Slow progress【C】Not aiming at target

NATIONAL TAX AGENCY REPORT 2023

Proper and Fair
Taxation and Collection⑵ The NTA’s missions and assignment and the structure of results
evaluation targets

62

Ⅶ

Results Evaluation（Evaluation of Policies）

Ministry of Finance Round-table Conference for Policy Evaluation
In order to secure objectivity for the evaluation of results and improve the quality of evaluation, the “Ministryof Finance Round-table Conference for Policy Evaluation,”(https://www.mof.go.jp/about_mof/councils/policy_
evaluation/proceedings/index.html [in Japanese]) which consists of external experts, is held to obtain theiropinions at the phase of implementation planning and evaluation.
Regarding the evaluation of results for operation year 2021, we obtained following opinions.
・ “I feel it is generally difficult to run a PDCA cycle. However, the NTA has kept using PDCA for a long time, inincorporating certain elements for the future in the evaluation, etc. I appreciate it as the initiative of a quite
excellent organization.”・ “User viewpoints are very important in digital transformation. If higher evaluation is obtained from user
viewpoints, it could lead to higher efficiency in operation and effective operation. The same does apply if
digitalization of the operation is promoted after the NTA reviewed its operation thoroughly. Therefore, wewould appreciate further endeavors.”
・ “Digitalization has advanced better than expected during the three years of the COVID-19 pandemic. That’s
why the prerequisites for workstyle have changed to some extent. Going forward, the NTA is requested tothink about which indicators are really needed and appropriate with an eye on the future, instead of merely
returning to pre-corona.”

63

NATIONAL TAX AGENCY REPORT 2023

Ⅷ Statistics＊ The time period of figures is indicated in its title or at the top right of individual tables. The fiscal year ranges
from April 1 through March 31 of the following year (i.e. fiscal year 2023: April 1, 2023 to March 31, 2024),
while the operation year is from July 1 through June 30 of the following year (i.e. operation year 2023: July
1, 2023 to June 30, 2024). The calendar year ranges from January 1 through December 31 of the same
year for which income tax and other returns are filed. The amount of sub-total in each item of accounts may
not accord with the amount indicated in the grand total, due to rounding of fractional figures.

【Budget and final accounts of taxes andstamp revenues for fiscal year 2021】
Tax category

Million yen(24.4)(5.4)(19.0)(3.9)(30.5)
(1.6)
(1.3)
(2.9)
(0.0)
(0.0)
(0.9)
(0.4)

382,000
4,000
846,000
9,000－
894,000
63,880,000

387,600
1,878
893,4169,368
13960,848
67,037,885

(0.5)
(0.0)
(1.2)
(0.0)
(0.0)
(1.3)
(93.3)

1,703,700
227,700
4,000

1,881,394
222,142
4,817

(2.6)
(0.3)
(0.0)

19,100278,900

14,663282,988

(0.0)
(0.4)

11,3001,834,000
113,200
420,600

11,7101,831,646
111,979446,667

(0.0)
(2.5)
(0.2)
(0.6)

－

35,219(0.0)

68,492,500

71,881,112

Total NTA budget

Million yen

2,913
1,135

59,883
7,629
2,109
1,786
161
969
2,080
78,665562,987
641,652※1 “Expenses to improve convenience for taxpayers”includes
expenses related to operating expense for the Phone Consultation
Center.
※2 “General operating expenses”include expenses for tax forms andcorrespondence, wage expenses for part-timers, travel expenses,
honoraria for hired bookkeeping instructors and PR expenses.
※3 “Expenses to improve work environment and ensure safety”
includes expense to improve facilities and health care.
※4 In addition to the NTA budget shown above, 81.5 billion yen
is collectively recorded to the Digital Agency’s budget as theexpense for the government’s information system.

LiquorAdministration

17,533,195
3,849,004
13,642,830
2,770,245
21,888,613
1,132,125905,666
2,076,178
4,817
30,348635,549
316,193

Expenses to improve convenience fortaxpayers＊1
Expenses related tointernationalization measures
General operating expenses＊2
Expenses to improve work
environment and ensure safety＊3
Expenses related to tax reforms
Expenses for National Tax College
Expenses for National Tax Tribunal
Expenses for National ResearchInstitute of Brewing
Expenses for the development of theliquor industry
Subtotal
Salary costs

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs※ “Other” the amount collection of delinquent taxes, collected as thecommodity tax, land value tax, etc

Tax returns and taxation【Income tax】

(Calendar year 2022)

124,500
67,23022,95013,330
6,530
1,640
4,900
1,060
2,680
810
350

【Inheritance tax】
Number of deceased
Number of deceased subject to taxation
Number of taxpayers (number of heirs)
Taxable amountAmount of tax【Gift tax】

(Calendar year 2021)

1,439,856 people
134,275 people
341,002 people
18,603.9 Billion yen
2,444.0 Billion yen

Statistics

Breakdown by
income earners

Total population
Number of persons engaged
Number of final returns filed
Refunds
Tax payments
Business income earners
Other income earners
Real estate income earners
Employment income earners
Miscellaneous income earners
Other

Thousand people

Remedy for
Taxpayer Rights

16,739,000
3,288,000
12,887,000
2,555,000
21,108,000
1,176,000
912,000
2,128,000
4,000
37,000606,000
305,000

BudgetProper and Fair
Taxation and Collection

Total

Items

Actual(Percentage of total)

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Local corporation tax
Local gasoline tax
Liquefied petroleum gas tax(transferred)
Aviation fuel tax (transferred)
Motor vehicle tonnage tax(transferred)
Special tonnage tax
Special business tax
Special tobacco tax
Special income tax forreconstruction
Other

Million yen【NTA initial budget for fiscal year 2023】

General expenses

General AccountWithholding income tax
Self-assessment 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
Power resources
development promotion tax
Motor vehicle tonnage tax
International tourist tax
Customs duty
Tonnage tax
Other＊
Stamp revenue
Subtotal

Budget after
correction

About the NTA

Tax revenues and budget(Calendar year 2021)

Number of people subject to taxation
Value of properties acquired
Amount of tax

443,429 people
2,372.7 Billion yen
255.4 Billion yen＊Figures include the taxation system for settlement at the time ofinheritance.

NATIONAL TAX AGENCY REPORT 2023

64

Ⅷ Statistics【Withholding agents and withholding income tax】
(Operation year 2021)

Category of income etc.

Number ofwithholding agents

Employment income (wages
and salaries)
Retirement income
Interest income, etc.
Dividend income
Capital gains on listed sharesetc. kept in special accountIncome from remuneration, etc.
Income paid to non-residents
and foreign corporations, etc.

Amountof taxThousandBillion yen

33
148

276.0
276.6
5,505.2

11

815.0

2,861
33

1,176.7
757.4

3,560

Total

－

11,885.0

20,691.9＊The number of withholding agents are figures as of the end of June
2022.
＊The amount of tax imposed on the income obtained on and afterJanuary 1, 2013 includes special income tax for reconstruction.

【Number of corporations and corporation tax】
(Operation year 2021)

Number of corporations
3,283 Thousand corporations
Number of tax returns filed
3,065 Thousands
Percentage of corporations filing
91.9%
Percentage of returns declaring a surplus
35.7%
Amount of self-assessment income
79,479.0 Billion yen
Amount of self-assessment loss
16,842.7 Billion yen
Amount of tax
13,923.2 Billion yen【Consumption tax】

(Fiscal year 2021)

Category
Payment
1,064 Thousands
Number Individualsof tax Corporations 1,858 Thousands
returns
Total
2,922 Thousands
Amount of tax
19,789.5 Billion yen

Refund85 Thousands
199 Thousands
284 Thousands
5,912.8 Billion yen【Liquor tax and liquor production】(Fiscal year 2021)

Volume ofproduction

Type
Sake
Sake compounds
Continuous distillation Japanesespirits (Shochu)
Pot distillation Japanese spirits(Shochu)
Mirin (rice cooking wine)
Beer
Fruit wine
Sweet fruit wine
WhiskyBrandySparkling liquor
Alcohol for material & Spirits
Liqueurs
Other brewed liquors, powder liquor& miscellaneous liquor

Thousand kl

Million yen

374

93,271

89
1,931
93
5
127
3
402
999
2,369

1,875
378,485
9,778
549
45,758
1,282
79,907
81,213
237,628282

31,3807,304

1,072,114

312
19
299

Total

＊The number of corporations is the figure as of the end of June 2022.

Amountof tax41,854
1,880
67,255

Tax examinations【Field examination of self-assessment income tax】
(Operation year 2021)

Number of
Numberundeclaredof casescases

Thousands

Thousands

31

27

Amount ofundeclared income
Billionyen

419.8

Additional tax
revenue collected

Per case
Thousandyen

Billionyen

13,37080.4

Per case
Thousand
yen

2,560

【Field examination of withholding income tax】
(Operation year 2021)

Numberof casesThousands yen

Number of illegal
cases

Additional tax
revenue collected

15

22.8

Thousands

48

Billion yen＊The amount of additional tax revenue collected in connection with
the income obtained on and after January 1, 2013 includes special
income tax for reconstruction.

(Operation year 2021)

Category

All corporations
Corporations
handledby the Large
Enterprise
Department

65

Thousands

Thousands

41

31

1

1

Amount ofundeclared
incomeAdditionaltax
revenue
Per case collected

Billion Thousand
yen
yen

602.8

14,790226.8

205,080

NATIONAL TAX AGENCY REPORT 2023

(Operation year 2021)

Category
Individuals
Corporations

Numberof
Cases

Number ofundeclared
cases

17
40

14
24

Thousands

Thousands

Additional tax
revenue collected

Per case
Billion yen Thousand yen

24.1
86.9

1,430
2,170

【Field examination of inheritance tax】

(Operation year 2021)

Additional tax
Number of Amount of undeclared
Numberinheritancerevenue collected
undeclaredof casescases
Per case
Per case

Thousands

6

Thousands Billion yen Thousand
yen

6

223.0

35,300Billion Thousand
yen
yen

56.0

8,860

【Collected number of statutory information】【Field examination of corporation tax】
Number Number ofundeclared
of
cases
Cases

【Field examination of consumption tax】

Billion
yen

143.8
50.9

(Operation year 2021)

Statutory information
Withholding record of employment income
Payment record of interest
Payment record of dividends
Other
Total

Numbercollected

Thousands

25,914
10,21758,470371,455

466,057

【Field examination of corporations conducting
overseas transactions,etc.】【Field examination of transfer pricing taxation】(Operation year 2021)

Number of undeclared cases
Amount of undeclared income(Operation year 2021)

6,676 Cases
1,752 Cases
219 Cases

154 Cases
33.3 Billion yen【Cases requested and processed for advancepricing arrangement related to transfer pricing】(Operation year 2021)

161.1 Billion yen

Number of cases requested
Number of cases processed

10.8 Billion yen

175 Cases
99 Cases

Proper and Fair
Taxation and Collection

Delinquency【Tax delinquency cases by major tax categories】
Under collection
process at the end of
the previous year

Consumption tax

Billion yen

Billion yen

Billion yen

108.1
56.1

99.5
32.5

89.5
37.0

334.2
105.4
228.8

superscript 86.4

superscript 86.4

324.5
5.7
828.6

211.3
39.3
171.9

superscript 112.4

superscript 112.4

399.7
9.7
752.7

Under collection
process at the end of
the yearBillion yen

192.5
31.0
161.5

superscript 103.1

superscript 103.1

369.2
7.3
695.6

352.9
113.7
239.2

superscript 95.7

superscript 95.7

118.0
51.7
355.1
8.0

LiquorAdministration

Other taxes
Total

Collected

Remedy for
Taxpayer Rights

Income tax
Withholding income tax
Self-assessment income
tax
Corporation tax
Inheritance tax(Fiscal year 2021)

Newly occurred

885.7＊Local consumption tax is not included in the figures above because they indicate national tax delinquency.
However, according to Article 9 (4) of the supplementary provisions of the Local Tax Act, the national government must assess and collect local
consumption tax with national consumption tax for the time being. That is why the delinquent amounts of local consumption tax are indicated by
the superscript amounts in the rows “Consumption tax” and “Total” fields.

Numberof casesconducted

Numberof cases
closed

Cases

Cases

145

139

(Fiscal year 2022）

Amount of tax
Number ofevasioncases
Amount of tax
withevasion(accusation filed
accusation
to the prosecutor)
filed to thePercase
Per caseprosecutor
Cases Billion
yen

103

12.8

Million Billion
yen
yen

92

10.0

Millionyen

97【Accusations filed to the prosecutor, by tax
category】(Fiscal year 2022）

Tax category
Income tax
Corporation tax
Inheritance tax
Consumption tax
Withholding income tax
Total

Numberof cases

Amount of tax
evasion

Cases

Million yen

Per case
Million yen

103

10,019

97

19
47
2
34
1

2,424
4,275
288
3,010
22

128
91
144
89
22

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs

Criminal investigation【Criminal investigations】

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Number of examinations of corporations
conducting overseas transactions
Number of undeclared cases related tooverseas transactions
Cases of overseas fraudulent
calculations
Amount of undeclared income related tooverseas transactions
Amount of overseas fraudulently
omitted income

About the NTA

International taxation

Statistics

NATIONAL TAX AGENCY REPORT 2023

66

Ⅷ Statistics
Remedy for taxpayer rights【Request for re-examination】
Category

Number ofrequests for reexamination

Taxation-related
Collection-related(Fiscal year 2021)

Number of requests approved ②
Full

Percentage②／①

Partial

Cases

Cases

Cases

Cases

Cases

Cases

80
一

7.1
2.2

1,457

1,119

1,198

83

3

80

6.9

1,398
59

Total

Numberof cases
processed ①

Number of new
requests forre-examination
1,065
54

1,152
46

82
1

2
1

%

＊1 In June 2014, the relevant laws relating to this review system were revised, including the change of the Japanese name of a request for reexamination from “Igi Moshitate” to “Saichosa no Seikyu.” This revision came into force in April 2016.
＊2 Figures include the cases of “Igi Moshitate.”【Request for reconsideration】
Category

Number ofrequests forreconsideration

Taxation-related
Collection-related(Fiscal year 2021)

Full

Percentage②／①

Partial

Cases

Cases

Cases

Cases

Cases

Cases

136
1

13.4
1.3

4,703

2,482

2,282

297

160

137

13.0

Number of cases
filed for first
instance

Number ofcases closed
①

Cases

Cases

Cases

Cases

Cases

Cases

6
一
一

7.3
3.0
一

384

96

199

13

7

6

6.5

4,582
121

Total

Number ofcases
processed ①

Number of new
requests forreconsideration

Number of requests approved ②

2,390
92

2,202
80

296
1

160
一

【Litigation】
Category%(Fiscal year 2021)

Number of
litigations

Taxation-related
Collection-related
National Tax
Tribunal-related
Total

325
55
4

74
19
3

164
33
2

Number of lost cases ②
Full

12
1
一

Percentage②／①

Partial6
1
一%＊The figures for cases for litigation are the total numbers for each level of trial.

Tax consultations【The five items of most frequently consulted】〔Phone Consultation Centers〕

Rank
1
2
3
4
5

Tax
category(Fiscal year 2022）

Items

Income tax Obligations & procedures to file
tax returns, etc.
Income tax Year-end adjustment
Income tax Special credit for loans relating
to a dwelling
Income tax Medical expenses deduction
Income tax Guidance for consultation,
location of Tax Office〔Tax Answer System〕

Tax
Rank
category
1
2
3
4
5

67

cases
Thousand

601
223
219
207
183

(Fiscal year 2022）

Items

Income tax Tax rate of income tax
Stamp duty Table of Stamp Taxes(1) Type 1
Document to Type 4 Document
Income tax Deduction for employment
incomeIncome tax When having paid medical expenses(medical expenses deduction)
Income tax Exemption for dependents

NATIONAL TAX AGENCY REPORT 2023

cases
Thousand

3,308

2,622
1,807
1,748
1,310

【Number of consultations at Phone
Consultation Centers, by tax category】(Fiscal year 2022）

Tax category
Income tax
Corporation tax
Property tax
Consumption tax, etc.
Other

cases

Thousand

2,424
199
925
340
997

NATIONAL TAX AGENCYREPORT 2023

Issued in June 2023
(Corporate Number 7000012050002)

3-1-1 Kasumigaseki,
Chiyoda-ku, Tokyo, 100-8978
Japan

TEL. 03-3581-4161 (Representative)
NTA Website (English)
https://www.nta.go.jp/english/index.htm

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via online system

Mr. e-Tae-Tax

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