Japan's system of taxes requires people to report their income and pay various taxes, such as income tax, municipal and prefectural tax, etc. If you fail to pay your taxes during the times in which they are due, you will be considered "in default". If you are in default, you will receive notice in the mail informing you of your outstanding tax obligations. If you fail to pay the taxes after receiving such notice, your case may be referred to a special collection agency that government agencies use to ensure the collection of taxes. People who fail to pay their taxes on time cost the city a great deal of money. The tax revenue is lost, and the city has to spend time and money on chasing the defaulters. Please be a considerate citizen and pay your taxes during the regulated periods.
There are times when taxpayers are victims of disasters, fall ill, suffer severe financial losses in a business enterprise, or due to other circumstances, and are not able to pay their taxes. If you find yourself in these circumstances, please do not hesitate to consult with the Tax Division as soon as possible. National Health Insurance tax inquiries should be directed to the National Health Insurance and Pension Division.
In general, all taxes in Japan are based on the Voluntary Tax Payment System, which means that individuals are responsible for reporting and paying their taxes during a designated period. Taxes which are not paid by this period are considered to be in default. When this occurs, a Tokusoku-jyo (Tax Payment Collection Notice) will be sent out, in addition to Saikoku-sho (Payment Demand Letter) and phone calls. When tax payments are in arrears, collection penalty fees and late fees will be levied, in addition to the actual tax amount due. If the period falls between the day after the normal payment period and a month after, a penalty fee of 4.1% of the total taxes owed will be levied.
If city taxes continue to be in arrears, a Writ of Execution attaching property, bank accounts, employment income, etc. will be issued. Such measures are intended to maintain equal taxation and to ensure the collection of city taxes. Portions of the seized assets will be subject to public auction under the auspices of an organization called the Ibaraki Tax Debt Collection Agency.
By law, the seizure of assets can take place starting 10 days after the mailing of the Tax Payment Collection Notice, if no payments have been made. However, the City of Tsukuba gives taxpayers the benefit of the doubt, and does understand that taxpayers sometimes face unforeseen circumstances. However, if taxes are still in arrears even after reminders through Payment Demand Letters and phone calls, the City will then be left with no choice but to execute the seizing of assets and other collection measures.
Topics: Taxes
Relevant for: Residents
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