I hereby promulgate the Tax Agent Law. Signed:HIROHITO, Seal of the Emperor This fifteenth day of the sixth month of the twenty-sixth year of Showa (June 15, 1951) Prime Minister YOSHIDA Shigeru Law No.237 The Tax Agent Law Contents Chapter I General Provisions (Articles 1-4) Chapter II Tax Agent Examination (Articles 5-17) Chapter III Enrollment (Articles 18-29) Chapter IV Right and Obligation of Tax Agent (Articles 30-43) Chapter V Responsibility of Tax Agent (Articles 44-48) Chapter VI Miscellaneous Provisions (Articles 49-57) Chapter VII Penal Provisions (Articles 58-64) Supplementary Provisions CHAPTER I General Provisions
(Duty of Tax Agent) Article 1. A tax agent shall endeavor, on a fair and just standpoint, to live up to the trust of the taxpayers and to see that tax liabilities provided for by the laws and orders concerning the taxes are performed properly and morality in regard to tax payment is enhanced.
(Business of Tax Agent) Article 2. A tax agent shall, on other persons'commission and in regard to the income tax, corporation tax, accession tax, net worth tax, value-added tax, municipal inhabitant tax, municipal property tax, enterprise tax, special income tax and other taxes prescribed by Cabinet Order (hereinafter referred to as "the taxes" ) carry on professionally the following business (hereinafter referred to as "the tax agent's business" ): (1) To act as an agent in regard to report, application, request for reinvestigation or reconsideration, filing or protest, request for refund of overpaid tax, and other matters (excluding litigation)(hereinafter such business shall be referred to as "tax agency" ); (2) To prepare returns, applications, requests and other documents to be filed with tax offices (excluding custom offices;hereinafter the same)(hereinafter such business shall be referred to as "preparation of tax documents" ); (3) To give counsel on the matters under item (1)(hereinafter such business shall be referred to as "counsel on taxpayment" ).
(Qualification of Tax Agent) Article 3. A person who comes under any of the following items shall be qualified to become a tax agent; provided that, in the case of a person who comes under item (3) or (4), the term in which he was engaged in the business concerning national taxes (excluding customs and tonnage dues;hereinafter the same excluding the cases under Article 4, Article 24 and Article 46) or local taxes or accounting shall be required to be two years or more in total: (1) Lawyers; (2) Certified public accountants; (3) Persons who have passed the tax agent examination; (4) Persons who are in accordance with the provisions of Article 7 or Article 8, exempted from such subjects of the tax agent examination as are covering all of the subjects enumerated in Article 6. 2 A person entitled to carry on the business under the provisions of Article 3 of the Lawyers Law (Law No.205 of 1949) in accordance with the provision of Article 7 paragraph 1 or 2 of the same Law and a person entitled to carry on the business under the provisions of Article 2 of the Certified Public Accountant Law (Law No.103 of 1948) in accordance with the provision of Article 16-(2) paragraph 1 of the same Law shall be deemed to be lawyer or a certified public accountant respectively for the application of the provisions of this Law.
(Disqualifications) Article 4. A person who comes under any of the following items shall not be qualified for a tax agent regardless of the provisions of the preceding Article: (1) Minors; (2) Incompetent or quasi-incompetent persons; (3) Bankrupt persons yet to be rehabilitated; (4) Persons who have been sentenced to imprisonment or heavier penalty in accordance with the provisions of the laws and orders concerning national or local taxes, this Law and the old Tax-practitioners Law (Law No.46 of 1942) and for whom five years have not passed from the day on which their sentence was completely executed or became unenforceable; (5) Persons who have been sentenced to a fine in accordance with the provisions of the laws and orders concerning national or local taxes, this Law or the old Tax-practitioners Law or subjected to the action of notification ( "Thukoku shobun" )(excluding the action of notification relating to money corresponding to minor fine) in accordance with the provisions of the Anti-National Tax Evasion Law (Law No.67 of 1900)(including the cases where the said Law applied mutatis mutandis in the Local Tax Law (Law No.226 of 1950)), or the Customs Law (Law No.61 of 1899)(including the cases where the said Law applies mutatis mutandis in the Tonnage Dues Law (Law No.88 of 1899)) and for whom three years have not passed from the day on which their sentence was completely executed or became unenforceable or the notification was implemented; (6) Persons who have been sentenced to imprisonment or heavier penalty in accordance with the provisions of the laws and orders other than those concerning national or local taxes, this Law or the old Tax-practitioners Law and for whom three years have not passed from the day on which their sentence was completely executed or became unenforceable; (7) Persons who, by way of disciplinary action, had their enrollment as tax agents cancelled or their license as tax-practitioners cancelled or were subjected to removal from the taxpractitioners'association and for whom three years have not passed from the day on which such action became irrevocable; (8) Persons who, by way of disciplinary action, were removed from office as personnel of the State or local public bodies (including dismissal and other actions corresponding to removal) or expelled from a lawyers'association, or had their enrollment as public accountants deleted, or have been prohibited to carry on the business of accountants or had their enrollment as accountants deleted or were prohibited to carry on the business of patent attorneys or had their authorization as judicial scriveners cancelled or had their enrollment as administrative scriveners cancelled and for whom three years have not passed from the day on which such action became irrevocable; (9) Persons among those whose applications for enrollment as tax agents have been rejected who come under the provisions of Article 22 paragraph 4 or have had their enrollment as tax agents cancelled in accordance with the provision of Article 25 paragraph 1 and for whom three years have not passed from the day on which such action has become irrevocable.
CHAPTER II Tax Agent Examination
(Qualification for Examination) Article 5. A person who comes under any of the following items shall be qualified for taking the tax agent examination: (1) Persons who are qualified to become an accountant, a certified public accountant or junior certified public accountant; (2) Persons who have been engaged in the business in tax offices or in the other administrative affairs concerning national taxes or local taxes for three years or more in total; (3) Persons who have been engaged in administrative organs, in such business of auditing, financial inspection or such other administrative affairs concerning the fiscal management of companies and other organizations, as may be prescribed by Cabinet Order, for five years or more in total; (4) Persons who have been engaged in banks, trust companies, insurance companies, or juridical persons established by a special law to carry on the the business of financing, in such business concerning loan or other utilization of funds (including the inspection of the fiscal management of the loanees), as may be prescribed by Cabinet Order, for five years or more in total; (5) Persons who have been engaged in such business concerning accounting of juridical persons (including the special accounts of the State or local public bodies) or individual conducting enterprises, as may be prescribed by Cabinet Order, for five years or more in total; (6) Persons who have been engaged in assisting the business of tax agents, tax-practitioners, lawyers, certified public accountants, or accountants for five years or more in total; (7) Persons who have been engaged in the business of patent attorneys for five years or more in total; (8) Persons who have been engaged in the business of judicial or administrative scrivener for ten years or more in total; (9) Persons who have graduated from or finished the course of university, preparatory course of university, senior course of higher school or college under the provisions of the School Education Law (Law No.26 of 1947), old University Ordinance (Imperial Ordinance No.388 of 1918), old Higher School Ordinance (Imperial Ordinance No.389 of 1918) or old College Ordinance (Imperial Ordinance No.61 of 1903) or other schools not inferrior to such schools as are prescribed by Cabinet Order (hereinafter referred to as "university, etc." ) and who have studied jurisprudence or economy; (10) Persons who have passed the secondary examination for judicial service or the principal examination of the higher civil service examination; (11) Persons who have been found by the tax agent examination committee as having knowledge concerning jurisprudence or economy not inferior to those persons enumerated in the preceding two items; 2 Persons who have been engaged in two or more of the affairs or business provided for in items (2) to (8) inclusive of the preceding paragraph may take the tax agent examination, if the term during which they were engaged in two or more of such affairs or businesses exceeds ten years in total by converting it at a rate whereby the number of years fixed under such items for the respective affairs or business is made ten. 3 For the application of the provisions of the preceding two paragraphs, the affairs or businesses found by the tax agent examination committee as similar to those provided for in paragraph 1 items (2) to (8) inclusive of shall be deemed as the affairs or businesses provided for in items (2) to (8) inclusive of the same paragraph respectively. 4 The procedure to obtain the finding of the tax agent examination committee provided for in paragraph 1 item (11) or the preceding paragraph shall be prescribed by Ministry of Finance Ordinance.
(Purpose of Examination and Subjects of Examination) Article 6. The purpose of the tax agent examination is to judge whether the examinee has necessary knowledge and practical ability to become a tax agent and shall be held on the following subjects: (1) Three subjects selected by the examinee among the Income Tax Law, Corporation Tax Law, Accessions Tax Law, Net Worth Tax Law, National Tax Collection Law, such portion of the Local Tax Law as concerns the valueadded tax, and such portion of the Local Tax Law as concerns the municipal property tax (hereinafter referred to as "the tax laws" );provided that the examinee shall have to select either one of the Income Tax Law and the Corporation Tax Law; (2) In accounting, two subjects of book-keeping and financial statement (hereinafter referred to as "accounting" ).
(Partial Exemption from Examination) Article 7. A person who has obtained a mark in the tax agent examination better than the standard fixed by Cabinet Order on a part of the subjects of examination shall be exempted, upon his application, from the examination on the subjects concerned in the subsequent tax agent examination.
Article 8. A person who comes under any of the following items shall be exempted, upon his application, from the examination on the subjects mentioned in the respective items in the tax agent examination: (1) In the case of persons who have been professors, assistant-professors or lecturers of subjects concerning jurisprudence and public finance at university, etc. for three years or more or a persons granted a degree for the study of subjects concerning jurisprudence and public finance;subjects concerning the tax laws; (2) In the case of persons who have been professors, assistant professors or lecturers of subjects concerning commerce at university, etc. for three years or more or persons granted a degree for the study of subjects concerning commerce;subjects concerning accounting; (3) In the case of persons who are junior certified public accountants or persons who are qualified to become junior cetified public accounts:subjects concerning accounting; (4) Persons who have been engaged in the business of accountant for five years or more in total:subjects concerning accounting; (5) Persons who have been engaged in administrative affairs concerning the imposition of the income tax, corporation tax, accessions tax or net worth tax or the drafting of the tax laws concerning national taxes for ten years or more in total:subjects concerning national taxes among those concerning national taxes; (6) Persons who have been engaged in administrative affairs concerning national taxes excluding the affairs mentioned in the preceding item for fifteen years or more in total:subjects concerning national taxes among those concerning the tax laws; (7) Persons who have been engaged in administrative affairs concerning the imposition of the value-added tax and municipal property tax or the drafting of the tax laws concerning local taxes for ten years or more in total:subjects concerning the tax laws; (8) Persons who have been engaged in the affairs mentioned in the preceding item for fifteen years or more in total:subjects concerning local taxes among those concerning the tax laws; (9) Persons who have been exclusively engaged in administrative affairs concerning local taxes excluding the affairs mentioned in item (7) for fifteen years or more in total:subjects concerning local taxes among those concerning the tax laws. 2 Persons who have been engaged in two or more of those of the professions, businesses or affairs provided for in items (1), (2) and items (4) to (9) inclusive of the preceding paragraph which are exempt from the same subjects of examination shall be exempt, upon their application, from the subjects concerned in the tax agent examination, if the term during which they were engaged in two or more of such professions, businesses or affairs exceeds ten years in total by converting it at a rate whereby the number of years fixed under such items for the respective professions, businesses or affairs is made ten. In this case, as for those were engaged in the professions or affairs provided for under item (1) or (7), the term during which they were engaged in the said professions or affairs shall be added to the term during which they were engaged in the other affairs which are exempt from such subjects concerning the tax laws as are related to national taxes or local taxes.
(Examination fee) Article 9. A person who intends to take the tax agent examination shall pay 500 yen as the examination fee. 2 The examination fee paid under the provision of the preceding paragraph shall not be refunded even if the examinee has not taken the examination.
(Cancellation of Passing of Examination, Etc.) Article 10. The tax agent examination committee may suspend the examination or cancel the decision of passing of the examination with respect to a person who has taken or attempted to take the tax agent examination by unlawful means. 2 The tax agent examination committee may preclude a person who has been subjected to the action under the provision of the preceding paragraph from taking the tax agent examination, by fixing a term not longer than three years according to circumstances.
(Certificate of Passing of Examination, Etc.) Article 11. A person who has passed the tax agent examination shall be given a certificate proving that he has passed the examination concerned. 2 A person who has obtained a mark better than the standard prescribed by Cabinet Order for some of the subjects of examination shall be informed of the subjects in which a mark better than such standard has been obtained.
(Holding of Examination) Article 12. The tax agent examination shall be held by the tax agent examination committee. 2 The tax agent examination shall be held more than once every year.
(Tax Agent Examination Committee) Article 13. There shall be a tax agent examination committee (hereinafter referred to as "the examination committee" ) in the Tax Administration Agency. 2 The examination committee shall take charge of the matters concerning the execution of the tax agent examination and other matters which have been placed within its powers in accordance with the provisions of this Law. 3 The examination committee shall consist of a chairman and two standing members. 4 When the tax agent examination is to be held, temporary members not exceeding 15 in number may be added to the examination committee to be charged with the preparation of questions and the marking in the tax agent examination. 5 The chairman and standing members shall be appointed by the Minister of Finance from among persons of learnig and experience in taxation. 6 The temporary members shall be appointed by the Minister of Finance from those who have been recommended by the examination committee among persons of sufficient learning and experience for executing the tax agent examination. 7 The chairman shall represent the examination committee and preside over its affairs. 8 Decision concerning the affairs of the examination committee shall be made by a majority of the chairman and the standing members;provided, that the preparation of questions and the marking in the examination shall be shared by the chairman, standing members and temporary members, as may be determined by the examination committee.
(Term of Office of Chairman, Etc.) Article 14. The term of office of the chairman and the standing members shall be two years;provided, that the term of office of the succeeding chairman in the case of the vacancy of the chairmanship or a standing member filling a vacancy shall respectively be the unexpired portion of his predecessor's. 2 The temporary members shall be appointed whenever the tax agent examination is executed, and they shall retire from office when their business has been finished.
(Service of Chairman, Etc.) Article 15. The chairman, standing members and temporary members shall serve part-time.
(Miscellaneous Affairs of Examination Committee) Article 16. The miscellaneous affairs of the examination committee shall be dealt with by the Director's Secretariat of Tax Administration Agency.
(Details of Examination) Article 17. Other than those provided for by this Law, the details concerning the taking of the tax agent examination shall be prescribed by Ministry of Finance Ordinance.
CHAPTER III Enrollment
(Enrollment) Article 18. In order that a person who is qualified to become a tax agent may become one, he shall have his full name, date of birth, the location of his office and other matters prescribed by Ministry of Finance Ordinance enrolled in the tax agents'roster.
(Tax Agents'Roster) Article 19. The tax agents'roster shall be kept in the Tax Administration Agency. 2 Enrollment in the tax agents'roster shall be effected by the Director of Tax Administration Agency.
(Enrollment of Changes) Article 20. If a matter enrolled in accordance with the provision of Article 18 has been changed, the tax agent shall apply for the enrollment of change without delay.
(Application for Enrollment) Article 21. A person who intends to obtain the enrollment under the provision of Article 18 shall file a written application for enrollment prepared in the form prescribed by Ministry of Finance Ordinance with the Director of Tax Administration Agency through the chief of taxation office having jurisdiction over the place of his residence. 2 The written application under the provisions of the preceding paragraph shall be accompanied with two copies, and when the chief of taxation office has received such written application, he shall, without delay, forward one copy each to the head of city, town or village (including special ward and the total affairs associations of cities, towns and villages;hereinafter the same) and to the governor of To, Do, Fu or prefecture, having jurisdiction over the place of residence of the applicant.
(Decision concerning Enrollment) Article 22. In cases where the Director of Tax Administration Agency has received the written application under the provision of paragraph 1 of the preceding Article, he shall, if he has recognized that the applicant is qualified to become a tax agent and does not come under any of the items of Article 24, enroll him in the tax agents'roster, and shall, if he has recognized that the applicant is not qualified to become a tax agent and comes under the items of the same Article, reject the application for enrollment. 2 In case the Director of Tax Administration Agency intends to reject an application for enrollment in accordance with the provision of the preceding paragraph, he shall notify to that effict to the applicant in advance and give him within a reasonable period an opportunity to submit explanation in person or through his deputy. 3 The Director of Tax Administration Agency shall, if he has effected enrollment in the tax agents'roster in accordance with the provision of paragraph 1, deliver the certificate of tax agent to the applicant, and, if he rejects the application for enrollment in accordance with the provisions of the same paragraph, he shall notify to that effect to the applicant in writing, attaching thereto the reason for the rejection. 4 In cases where the Director of Tax Administration Agency rejects the application for enrollment in accordance with the provision of paragraph 1, if the applicant is a person who has filed the written application for enrollment under the provision of paragraph 1 of the preceding Article, having, as to the important matters concerning the qualification for enrollment, failed to enter the matters to be entered, or made false entries, he shall make clear to that effect in the written notification under the provision of the preceding paragraph.
(Notification between the State and Local Public Bodies) Article 23. The head of city town or village, or of To, Do, Fu or prefecture shall, if he has found that a person who has filed a written application for enrollment under the provision of Article 21 paragraph 1 is not qualified to become a tax agent or comes under any of the items of Article 24, notify the fact to the Director of Tax Administration Agency. 2 The Director of Tax Administration Agency shall, if he has rejected an application for enrollment in accordance with the provision of the preceding Article, notify to that effect to the head of city, town or village, or of To, Do, Fu or prefecture having jurisdiction over the place of residence of the applicant.
(Causes for Refusal of Enrollment) Article 24. A person who comes under any of the following items may not be enrolled as a tax agent: (1) A person whose business as lawyer, certified public accountant, accountant, patent attorney, judicial scrivener or administrative scrivener has been suspended by way of discriplinary action and is still being subjected to the said action; (2) A person who holds a public office with remuneration (excluding the membership in the National Diet or the assemblies of local public bodies and offices of the part-time service;hereinafter the same); (3) A person who has evaded or attempted to evade or has caused or attempted to cause another to evade a national or local tax and for whom two years have not passed from the day on which such act was done; (4) A person who has, in connection with affairs relating to national taxes, local taxes or accounting, done an act subject to the penal provisions and for whom two years have not passed from the day on which such act was done; (5) A person who is found to be in adequate to take charge of the business of tax agent on account of mental or physical defect; (6) A person who is found to impair the trust in reputation of tax agents or who is lacking qualification as a tax agent in view of the professional responsibility of tax agents.
(Cancellation of Enrollment) Article 25. The Director of Tax Administration Agency may, if he has found that a person enrolled as a tax agent was a person who filed the written application under the provision of Article 21 paragraph 1, having, as to the important matters concerning the qualification for enrollment, failed to enter the matter to be entered or made false entries, and has been enrolled on the basis of that application, cancel such enrollment. 2 The provision of Article 12 paragraph 2 shall apply mutatis mutandis to a case where the disposition under the provision of the preceding paragraph is made. 3 The Director of Tax Administration Agency shall, in case he cancels enrollment in accordance with the provision of paragraph 1, notify to that effect in writing to the person who is to be subjected to such action attaching thereto the reason for such disposition.
(Delection of Enrollment) Article 26. The Director of Tax Administration Agency shall, if any tax agent has come under any of the following items, delete his enrollment without delay: (1) In case a tax agent closed his business; (2) In case a tax agent died; (3) In case a tax agent has come under any of Article 4 items (2) to (6) inclusive or item (8); (4) In case the action to cancel enrollment under the provision of paragraph 1 of the precedinge Article, or the same under the provision of Article 45 paragraph 1 or Article 46 paragraph 1 has become irrevocable. 2 In case tax agent has come under any of items (1) to (3) inclusive of the preceding paragraph, the tax agent, his legal reprsentative or his successor shall notify to that effect to the Director of Tax Administration Agency without delay.
(Public Notice of Enrollment and Deletion of Enrollment) Article 27. The Director of Tax Administration Agency shall, in case he has enrolled a tax agent or deleted such enrollment, give public notice to that effect and, if the enrollment has been deleted, the said cause, in the Official Gazette.
(Return of Certificate of Tax Agent) Article 28. In case the enrollment of a tax agent has been deleted, the tax agent, his legal representative or his successor shall immediately return the certificate of tax agent to the Director of Tax Administration Agency. The same shall apply to a case where the tax agent has come under the provision of Article 43, or where the tax agent has been subjected to the action to suspend the tax agent'business under the provision of Article 45 paragraph 1 or 2, or Article 46 paragraph 1 and such action has become irrevocable. 2 The Director of Tax Administration Agency shall, in case a tax agent coming under the provision of the latter part of the preceding paragraph has become able to carry on the tax agent's bussiness, deliver again the certificate of tax agent to him upon his application.
(Details of Enrollment) Article 29. Other than those provided for by this Law, the procedure of enrollment, deletion of enrollment, tax agents'roster, certificate of tax agent and other details concerning enrollment shall be prescribed by Ministry of Finance Ordinance.
CHAPTER IV Right and Obligation of Tax Agent
(Indication of Power of Representation) Article 30. Every tax agent shall, in case he performs tax agency, submit to the national or local taxation office a document expressly indicating the power of repesentation.
(Matters requiring Special Delegation) Article 31. In a case where a tax agent does any of the following acts in the performance of tax agency, he shall get special delegation: (1) Request of reinvestigation or reconsideration, filing of protest, or withdrawal of appeal; (2) Claim for refund of overpaid tax and receipt thereof; (3) Selection of deputy.
(Presentation of Certificate of Tax Agent) Article 32. Every tax agent shall, in case he meets the personnel of the national or local taxation offices in the performance of tax agency, present the certificate of tax agent.
(Obligation of Signature and Sealing) Article 33. In a case where a tax agent makes and files with the national or local taxation office a return, written application, request or other documents relating to taxation in the performance of tax agency, he shall sign such documents and put his seal thereto. In this case, if the document concerned is a return concerning the taxable basis or tax liability or concerning a claim for refund of money under the provision of Article 36 or Article 36-(2) of the Income Tax Law (Law No.27 of 1947) or in Article 26-(3) of the Corporation Tax Law (Law No.28 of 1947), the taxpayer himself shall also sign such document and put his seal thereto. 2 In case a tax agent has prepared tax documents, he shall sign such documents and put his seal thereto. 3 In case a tax agent signs and put his seal in accordance with the provisions of the preceding two paragraphs, he shall state in the document that he is a tax agent. In this case, if the tax agent is a lawyer or certified public accountant, he shall state in the document that he is a tax agent who is a lawyer or is a tax agent who is a certified public accountant. 4 The presence of a sign and seal under the provision on of paragraph 1 or 2 shall not be interpreted as affecting the validity of the document concerned. 5 The provisions of the latter part of paragraph 1 shall not be interpreted as precluding the application of Article 25-(2) of the Corporation Tax Law or of Article 40 of the Local Tax Law (Obligation of Representation, Etc. of a Juridical Person to Sign and Seal).
(Notice of Investigation) Article 34. In cases where competent personnel member of the national or local taxation office notifies in advance a person entitled to file a blue return of the time and place of investigation and investigates the documents and books concerning the tax referred to in the blue return, the personnel member shall, if there is a tax agent who has filed a document under the provision of Article 30 regarding the tax concerned, notify also the tax agent concerned of the time and place or of investigation. 2 "Blue return" as stated in the preceding paragraph shall mean a return provided for in Article 26-(3) paragraph 1 of the Income Tax Law, Article 25 paragraph 1 of the Corporation Tax Law or Article 52 paragraph 1 of the Local Tax Law.
(Hearing of Opinion) Article 35. A member of the conference group of Tax Administration Agency or the conference group of regional tax administration bureau shall, in a case where he investigates the matters relating to the request for reconsideration under the provisions of the Income Tax Law, the Corporation Tax Law, the Accessions Tax Law (Law No.73 of 1950) or the Net Worth Tax Law (Law No.174 of 1950), if there is a tax agent who has filed a document under the provision of Article 30 regarding the request for reconsideration, give to the said tax agent an opportunity to express his opinion on the matters concerned.
(Prohibition of Counsel on Tax Evasion) Article 36. A tax agent shall not give a suggestion or counsel, or do similar acts concerning tax evasion.
(Prohibition of Act Impairing Tax Agent's Reputation) Article 37. A tax agent shall not do any act that may impair the trust in or reputation of tax agents.
(Duty to Keep A Secret) Article 38. A tax agent shall not, without valid reasons, divulge or make secret use of a secret which has come to his knowledge in connection with the tax agent's business. The same shall apply even after he has ceased to be a tax agent.
(Limitation of Remuneration) Article 39. No tax agent shall get any remuneration under whatever name in excess of the amount determined by the Director of Tax Administration Agency in regard to the tax agent's business. 2 The Director of Tax Administration Agency shall, in case he determines the amount of such remuneration under the preceding paragraph as concerns local taxes, consult with the Local Finance Commission. 3 The Director of Tax Administration Agency shall, in case he has determined the amount of remuneration mentioned in paragraph 1, give notice thereof.
(Duty to Set Business Office) Article 40. Every tax agent shall set up an office to carry on the tax agent's business. 2 No tax agent may set up two or more offices to perform the tax agent's business;provided that this shall not apply in cases where permission has, if deemed specially necessary, been obtained from the Director of Tax Administration Agency through the procedure prescribed by Ministry of Finance Ordinance.
(Duty to Prepare Books) Article 41. Every tax agent shall prepare books concerning the tax agent's business and enter therein the matters mentioned in the following items according to the classification of affairs mentioned in the respective items: (1) Tax agency: For each case, the address and name or title of the commissioning person, date of commission, gist and history of the case, amount of remuneration, and the date of closing of the case; (2) Preparation of tax documents and counsel on taxpayment:For each case, the address and name or title of the commissioning person, date of commission, and amount of remuneration. 2 The books under the preceding paragraph shall be preserved for at least five years after their closing.
(Limitation of Business) Article 42. A tax agent who has once been engaged in administrative affairs concerning national or local taxes shall not carry on the tax agent's business in connection with a case with which he was concerned during his tenure of office.
(Suspension of Business) Article 43. Every tax agent whose business as lawyer, certified public accountant, accountant, patent attorney, judicial scrivener or administrative scrivener has been suspended by way of disciplinary action shall not carry on the tax agent's business while he is being subjected to such action. The same shall to the period during which a tax agent holds a public office with remuneration.
CHAPTER V Responsibility of Tax Agent
(Kind of Disciplinary Dispositions) Article 44. The disciplinary dispositions against tax agents shall be classified into the following three kinds: (1) Warning; (2) Suspension of the tax agent's business for a term not exceeding one year; (3) Cancellation of enrollment
(Disciplinary Dispositions against Counsel on Tax Evasion, Etc.) Article 45. The Director of Tax Administration Agency may, in case a tax agent has intentionally performed tax agency or prepared tax documents against the true fact, or in case he has committed an act in violation of the provision of Article 36, suspend the performance of tax agent's business for a term not exceeding one year, or cancel the enrollment of the tax agent. 2 The Director of Tax Administration Agency may, in case a tax agent has committed such act as provided for in the preceding paragraph by failure to exercise proper attention, give a notice of warning or suspend the performance of tax agent's business for a term not exceeding one year. 3 The provision of Article 22 paragraph 2 shall apply mutatis mutandis to such cases where a disposition under the provisions of the preceding two paragraphs is made. 4 The Director of Tax Administration Agency shall, in case he makes a disposition under the provision of in paragraph 1 or 2, notify to that effect to the person who is liable to such disposition by letter stating the reasons therefor.
(General Disciplinary Dispositions) Article 46. In cases, other than those falling under the provision of paragraph 1 or 2 of the preceding Article, where a tax agent has violated the provisions of this Law or of laws and orders concerning national or local tax, the Director of Tax Administration Agency may, make a disciplinary disposition mentioned in the respective items of Article 44. 2 The provisions of Article 22 paragraph 2 and of paragraph 4 of the preceding Article shall apply mutatis mutandis to the case where punishment under the provision of the preceding paragraph is imposed.
(Application for Investigation) Article 47. Any person may, in case he has found that a tax agent falls under the provision of Article 45 paragraph 1 or 2, or paragraph 1 of the preceding Article, inform the Director of Tax Administration Agency of such fact, and request to take a proper measure.
(Public Notice of Disciplinary Dispositions) Article 48. The Director of Tax Administration Agency shall, in case the warning or suspension of tax agent's business under the provision of Article 45 paragraph 1 or 2 or Article 46 paragraph 1 has been decided upon, immediately make a public notice to that effect in the Official Gazette.
CHAPTER VI Miscellaneous Provisions
(Tax Agents Associations and Federation of Tax Agents Associations) Article 49. The tax agents may establish such juridical person under the provision of Article 34 of the Civil Code (Law No.89 of 1896) to be called a tax agents association covering the area of each regional tax administration bureau, as is composed of tax agents having their offices within such area. 2 The tax agents associations may establish such juridical person under the provision of Article 34 of the Civil Code to be called a federation of tax agents associations, as includes as its members the tax agents associations which have been established to cover the areas of respective regional tax administration bureaus with one or more members for each bureau area. 3 In accordance with the provisions of the articles of association, the federation of tax agents association may make any person a member of the federation. 4 The tax agents associations and the federation of tax agents associations shall, in consideration of the duties and responsibilities of tax agents, have the purpose of carrying on the affairs concerning guidance of and communication with their members for facilitating the performance of the functions of tax agents under the provision of this Law and the improvement and progress in the business of tax agents. 5 The tax agents associations and federation of tax agents associations may make proposals to the competent government offices concerning tax administration and systems of national or local taxes or of tax agents, or may respond to the inquiries of the said government offices.
(Preparation, Etc. of Preliminary Tax Documents) Article 50. A director of regional tax administration bureau (or the head of a local public body in the case of local tax) may, during the dueterm for reporting the taxes, or in cases where some disasters occur in the area or where there is other special necessity, permit persons other than the tax agents to prepare returns, written applications and written claims concerning basis or amount of taxes and other documents to be submitted to tax offices or written applications for tax reduction, exemption or postponement of tax collection, and to give counsel on tax affairs, without any consideration, by designating a period not exceeding two months, in references to designated taxes, through the request of the said persons in order to give the tax reporters facility;provided, that the persons entitled to such permission shall be limited to the personnel of local public body and the officers or personnel of the corporation under the provision of Article 34 of the Civil Code and of other corporations or organizations as prescribed by Cabinet Order. 2 The provisions of Article 33 paragraphs 2 and 4, Article 36 and Article 38 shall apply mutatis mutandis to persons who have obtained the permission under the provision of the preceding paragraph.
(Lawyer to Carry on the Tax Agent's Business) Article 51. A lawyer may carry on the tax agent's business by reporting it at any time to the director of regional tax administration bureau through the bar association to which he belongs within the area under the jurisdiction of the said regional tax administration bureau. 2 The lawyer who carries on the tax agent's business in accordance with the provision of the preceding paragraph shall be deemed to be a tax agent within the extent of carrying on the tax agent's business, as to the application of the provisions of Article 1, Article 30, Article 31, Articles 33 to 39 inclusive, Article 41, the first part of Article 43, Article 44 (excluding item (3)), Articles 45 (excluding the part relating to the disciplinary disposition of the cancellation of registration in paragraph 1) to 48 inclusive, Article 54 and Article 55.
(Limitation on the Tax Agent's Business) Article 52. No person other than tax agent shall carry on the of tax agent's business, unless otherwise provided for by this Law.
(Limitation on the Use of Title) Article 53. No person other than a tax agent shall use the title of a tax agent or the like. 2 An organization which is neither a tax agents association nor a federation of tax agents associations shall use the title of tax agents association or federation of tax agents associations or the like. 3 The provisions of the preceding two paragraphs shall not be construed as precluding an individual other than the tax agent and the organization other than the tax agent association and the federation of tax agents associations from using the title approved by other laws.
(Duty of the Employee, Etc. of Tax Agent to Keep Secret) Article 54. The employee and other worker of a tax agent shall not, without any justifiable reasons, divulge or make secret use of a secret which has come to their knowledge in connection with the tax agent's business. The same shall apply after they have ceased to be the employee and other worker of a tax agent.
(Supervisory Measures) Article 55. The Director of Tax Administration Agency may, in case there is necessity to secure the fair operation of tax agent's business, gather reports from tax agents, tax agents associations, federation of tax agents associations and other organizations organized by tax agents or federation thereof, or make recommendation to those associations or organizations concerning their business, or may cause his personnel to inquire the tax agents or inspect books and documents concerning the tax agent's business. 2 The power to gather reports, inquire or inspect under the provision of the preceding paragraph shall not be construed as having been recognized for purposes of criminal search.
(Petition) Article 56. A person, who has been subjected to a disposition under the provision of Article 22 paragraph 1, Article 25 paragraph 1, Article 45 paragraph 1 or 2 or Article 46 paragraph 1, may, in case he is not satisfied with such disposition, file a petiton with the Minister of Finance in accordance with the provisions of the Petition Law (Law No.105 of 1890) within one month after the day when he got the notice informed of the disposition concerned. 2 The provision of Article 22 paragraph 2 shall apply mutatis mutandis to cases where a decision on the petition under the preceding paragraph is given (excluding the case where a decision to reject the case is given).
(Entrusting of Business) Article 57. The Director of Tax Administration Agency may entrust a part of the business, assigned to his authority in accordance with the provision of the proviso to Article 40 paragraph 2 or Article 55 paragraph 1, to the director of regional tax administration bureau or the chief of taxation office. 2 In case the Director of Tax Administration Agency has entrusted a part of his business to the director or regional tax administration bureau or the chief of taxation office in accordance with the provision of the preceding paragraph, he shall make notification to that effect.
CHAPTER VII Penal Provisions
Article 58. Any person who has violated the provision of Article 36 (including cases where the said provision applies mutatis mutandis in Article 50 paragraph 2) shall be punished with penal servitude for not exceeding three years, or a fine not exceeding 300,000 yen.
Article 59. Any person who has violated the provision of Article 52 shall be punished with penal servitude not exceeding two years, or a fine not exceeding 50,000 yen.
Article 60. Any person who comes under any of the following items shall be punished with penal servitude not exceeding two years, or a fine not exceeding 30,000 yen: (1) A person who has violated the provision of Article 38 (including cases where the said provision applies mutatis mutandis in Article 50 paragraph 2); (2) A person who has violated the provision of Article 54. 2 The offenses coming under the preceding paragraph shall be prosecuted upon complaint.
Article 61. Any person who comes under any of the following items shall be punished with penal servitude for not exceeding one year, or a fine not exceeding 50,000 yen: (1) A person who has violated the provision of Article 39; (2) A person who has violated the provision of Article 42; (3) A person who has violated the provision of Article 43; (4) A person who has carried on the tax agent's business in violation of the disposition for suspending the tax agent's business under the provision of Article 45 paragraph 1 or 2 or Article 46 paragraph 1, when such disposition has already been decided upon.
Article 62. A person who comes under any of the following items shall be punished with a fine not exceeding 50,000 yen: (1) A person who has violated the provisions of Article 53 paragraph 1; (2) A person who has violated the provisions of Article 53 paragraph 2.
Article 63. Any person who comes under any of the following items shall be punished with a fine not exceeding 10,000 yen: (1) A person who has failed to prepare the books under the provision of Article 41 paragraph 1 or to enter therein any matters provided for in the same paragraph, or has made a false entry; (2) A person who has failed to make a report under the provision of Article 55 paragraph 1 or made a false report or has failed to answer or has answered falsely to the inquiry, or has refused, obstructed or evaded the inspection.
Article 64. In case any representative of a corporation, or a deputy, employee or other worker of a corporation or a individual has committed the offence under Article 59, Article 61 item (1), Article 62 item (2) or item (1) or (2) or the preceding Article, in carrying on the business of such corporation or individual, a movetary penalty under these provisions shall be imposed on such corporation or individual, in addition to the punishment against the affender;provided that the same shall not apply to the corporation or individual, in case it is proved that the corporation or individual has exercise proper attention and supervision on its business to prevent the offence committed by a deputy, employee or other worker of the corporation or individual.
Supplementary Provisions: 1 This Law shall come into force as from the day when one month has elapsed computing from the day of its promulgation. 2 The Tax-practitioners Law shall be abolished; provided that, the provisions concerning the licensing of tax-practitioner under the provision of Article 4 paragraph 1 of the said Law shall still be effective for a period not exceeding three months after the enforcement of this Law, and until March 31, 1952, with respect to a person who has applied for the license under the provision of the same paragraph prior to the expiration of the said period. 3 As for the application of the penal provisions to the offence committed before the abolition of the Tax-practitioners Law, the former provisions shall still prevail. 4 Persons enumerated in the following items (excluding lawyers and certified public accountants) shall be qualified for tax agency, notwithstanding the provisions of Article 3;provided that they shall not be qualified for enrollment as tax agents notwithstanding the provision of Article 22 paragraph 1, unless they take such short course or study of tax laws as prescribed by Cabinet Order for not less than thirty hours: (1) A person who has actually obtained a license of tax practitioner under the provisions of the old Tax-practitioners Law at the time of the enforcement of this Law; (2) A person who has obtained a license of tax-practitioner under the provisions of the old Tax-practitioners Law which are still effective by virtue of the provision of the proviso to paragraph 2. 5 A person who is a member of personnel of the national or local public body at the time of the enforcement of this Law and who has been exclusively engaged in the administration of national tax business for an aggregate period of more than 15 years or exclusively engaged in the business of assessment of local tax for an aggregate period of more than 20 years shall be qualified for tax agency, notwithstanding the provisions of Article 3, only when the examination committee has approved that the said person has the required knowledge equal to or more than a successful candidate of tax agent examination, on the tax laws and accounting, in accordance with the standard prescribed by Cabinet Order. 6 In case a person as provided for in the preceding paragraph intends to obtain the approval of the examination committee under the provision of the same paragraph, he shall apply, through the procedure as may be prescribed by Ministry of Finance Ordinance, for the approval of the same committee within three months computing from the day of enforcement of this Law. 7 In case the examination committee has given the approval under the provision of paragraph 5, or has refused to give the approval to the application under the provision of the preceding paragraph, the committee shall notify to that effect to the applicant. 8 A certified public accountant who passed the third examination for certified public accountant, or the examination for special certified public accountant, held on or before June 3, 1951, shall not be qualified for enrollment as a tax agent, notwithstanding the provision of Article 22 paragraph 1, unless he takes such short course or study of tax laws as prescribed by Cabinet Order for not less than thirty hours. 9 Any person mentioned in the following items shall be deemed to have become a tax agent on the day of enforcement of this Law and shall be subject to the provisions of this Law (excluding the provisions concerning the enrollment of tax agent and the tax agent certificate) for a period not longer than three months computing from the day of enforcement of this Law (if he has made an application for the enrollment under the provision of Article 21 paragraph 1, during such period, until the day when he is enrolled as a tax agent according to the said application, or when the disposition for rejection of such application is decided). In this case, if he has two or more offices to carry on the tax agent's business at the time of enforcement of this Law, he shall be deemed to have obtained the permission of the Director of Tax Administration Agency under the provision of the proviso to Article 40 paragraph 2 concerning the establishment of the office on the day of enforcement of this Law: (1) A person mentioned in paragraph 4 item (1); (2) An lawyer actually carrying on the taxpractitioners'business at the time of enforcement of this Law; (3) A certified public accountant who has actually obtained the license of tax-practitioner under the provisions of the former Tax-practitioners Law at the time of enforcement of this Law. 10 The provision in the first part of the preceding paragraph shall apply mutatis mutandis to a person mentioned in paragraph 4 item (2). In this case, "the day of enforcement of this Law" as stated in the first part of the preceding paragraph shall read "the day when he obtained the license of tax-practitioner under the provisions of the former Tax-practitioners Law." 11 The provisions of the preceding two paragraphs shall not be construed to preclude the application of the provisions of Article 4. 12 The tax-practitioners association under the old Tax-practitioners Law shall be regarded as having become a corporation which aims at carrying on the business as provided for in Article 49 paragraph 4, on the day of enforcement of this Law. 13 The organization and operation of the corporation under the preceding paragraph (hereinafter referred to as "the old tax-practitioners association" ) shall be governed by the provisions (excluding the provisions concerning the supervision by the Director of Tax Administration Agency and the director of regional tax administration bureau) of the old Tax-practitioners Law and the old Tax-practitioners Law Enforcement Regulations (Ministry of Finance Ordinance No.13 of 1942);provided that the member of the former tax-practitioners association may withdraw from the said association and any tax agent shall be newly qualified for a membership in the said association. 14 A person who withdraws from the former tax-practitioners association shall have a claim to his share of the property of the association only subject to the decision by a majority not less than two-thirds of those who are actually the member of such association at the time of enforcement of this Law. 15 The former tax-practitioners association may use the title of tax agents association or the similar title, notwithstanding the provisions of Article 53 paragraph 2. 16 As for the application of the provisions of the Corporation Tax Law, the former tax-practitioners association shall be deemed to be a corporation as provided for in Article 5 paragraph 1 of the same Law. 17 The former tax-practitioners association may be reorganized into a tax agents association. 18 In order to become a tax agents association by means of changing the organization in accordance with the provision of the preceding paragraph, the former tax-practitioners association shall prepare articles of association through a resolution by a majority of two-thirds or more of the members and apply for the Minister of Finance on the said articles through a procedure as may be prescribed by Ministry of Finance Ordinance. 19 In case the Minister of Finance has given or has refused to give approval to the application under the provision of the preceding paragraph, the Minister shall notify to that effect to the applicant accordingly. 20 The change of organization under the provision of paragraph 16 shall become effective with the approval of the Minister of Finance under the provision of the preceding paragraph 18. 21 In cases where the change of organization under the provision of paragraph 17 becomes effective, the provisions of the Civil Code and the Law of Procedure in Non-contentious Matters (Law No.14 of 1898) concerning the enrollment of establishment of corporations under Article 34 of the Civil Code shall apply, on the assumption that the approval by the Minister of Finance under the provision of paragraph 18 is the permission to establish tax agent association. 22 In cases where the former tax-practitioners association has failed to apply for the approval of the articles of association within the period prescribed in paragraph 18 or it has applied for such approval but not obtained approval, it shall be dissolved on the day when such period has expired or the association has been informed of the non-approval. 23 In case the former tax-practitioners association has dissolved in accordance with the provision of the preceding paragraph, the president of the association shall become the liquidator; provided that, if there is a vacancy in the post of president or the president is prevented from discharging his duties the vice-president shall become the liquidator. 24 In case there is no person to become the liquidator in accordance with the preceding paragraph or the port of the liquidator becomes vacant or the liquidator is prevented from discharging his duties a person elected by the general meeting of the association shall become the liquidator. 25 The disposition of the remaining property of the former tax-practitioners association shall be prescribed by a resolution by a majority of two-thirds or more of the members. 26 The liquidation of the former tax-practitioners association shall be subject to the supervision by the Director of Tax Administration Agency. 27 The provisions of Article 73, Articles 78 to 80 inclusive, Article 83 and Article 84 item (6) of the Civil Code (limited to that part of Article 79 of the same Law concerning public notice)(Liquidation of Corporation) shall apply mutatis mutandis to the liquidation of the former tax-practitioners association. 28 For the time being, "the Local Tax Law (Law No.226 of 1950)" as stated in Article 4 item (5), shall read "the Local Tax Law (Law No.226 of 1950) or the former Local Tax Law (Law No.110 of 1948)(including cases where the provisions of the former Local Tax Law are deemed to apply in paragraph 3 of the Supplementary Provisions of the Local Tax Law)" . 29 As for the examination of tax agents to be held in 1951, "the part of the Local Tax Law pertaining to the value-added tax" as stated in Article 6 item (1), shall read "the part of the Local Tax Law pertaining to value-added tax and enterprises tax (including the special income tax) among the Local Tax Law" . 30 The Ministry of Finance Establishment Law (Law No.144 of 1949) shall be partially amended as follows; Article 4 item (22) shall be amended as follows: (22) To hold the tax agents examination and to administer the enrollment and supervision over tax agents: Article 9 paragraph 1 item (2) shall be amended as follows: (2) Survey, planning and drafting of the system for tax agents: Article 30 item (13) shall be made item (14) of the same Article;item (14) of the same Article shall be made item (15) of the same Article;and the following one item shall be added next to item (12) of the same Article: (13) Administration of the enrollment of and supervision over tax agents; Article 31 shall be amended as follows:
(Affairs of the Direct Tax Division) Article 31. The Direct Tax Division shall take charge of the affairs concerning the assessment of direct national tax (excluding the affairs under the jurisdiction of the Investigation and Inspection Division).
In the table in Article 35 paragraph 1, the paragraph of Tax-practitioners Selection Council shall be deleted;and, "National Assets Revaluation Survey Council To study and deliberate, in response to the inquiries of the Director of the Tax Administration Agency, upon the request of reconsideration and other important matters with reference to the amount of revaluation or amount of taxes of revaluation, etc. under the Assets Revaluation Law (Law No.110 of 1950)." shall be amended as "National Assets Revaluation Survey Council To study and deliberate, in response to the inquiries of the Director of the Tax Administration Agency, upon the request of reconsideration and other important matters with reference to the amount of revaluation or amount of taxes of revaluation, etc. under the Assets Revaluation Law (Law No.110 of 1950). Examination Committee for Tax Agents To hold the examination for tax agents. " Paragraph 6 of the Supplementary Provisions shall be amended as follows: 6 Until March 31, 1952, the Director's Secretariat of the Tax Administration Agency shall administer the affairs concerning the permission for tax agents. 7 Until March 31, 1952, there shall be established such organization as mentioned on the left side of the following table to be attached to the Tax Administration Agency, and the purpose for establishment shall be as prescribed on the right side of the same table: Name Purpose Tax-practitioners Selection Council To study and deliberate in response to the inquiries of the Director of Tax Administration Agency, upon the permission to tax-practitioners.
31 The Lawyers Law shall be partially amended as follows: In Article 3 paragraph 2, "tax practitioner" shall be amended as "tax agent" . In Article 6 item (3), "annulled of his permission as a tax practitioner" shall be amended as "cancelled of his registration as a tax agent" . In Article 83, next to "as having his registration as a certified public accountant cancelled through disciplinary measures" , "and every person, who has been concelled his permission as a tax practitioner in conformity with the provisions of the Tax-practitioners Law (Law No.46 of 1942) shall be considered as having his registration as a tax agent cancelled through disciplinary measures" shall be added. 32 The Registration Tax Law (Law No.27 of 1896) shall be partially amended as follows: The following one Article shall be added next to Article 7-(2):
Article 7-(3). A person who applies for the enrollment on the following matters shall pay the registration tax according to the following schedule: (1) Enrollment under the provisions of Article 18 of the Tax Agent Law............ 2,000 yen; (2) Enrollment under the provision of Article 20 of the Tax Agent Law............ 100 yen.
33 The Corporation Tax Law shall be partially amended as follows: In Article 5 paragraph 1 item 2, "Patent Attorney Association and Tax Practitioners Association" shall be amended as "and Patent Attorneys Association" . 34 The Local Tax Law shall be partially amended as follows: In Article 23 paragraph 4 item (11), "the tax-practitioners business" shall be amended as "the tax agents business" ;and in Article 776 paragraph 3 item (6), "the tax-practitioners business" shall be amended as "the Tax-practitioners business and tax agents business" . 35 The Certified Public Accountant Law shall be partially amended as follows: In Article 4 item 7, "the Tax-practitioners Law (Law No.46 of 1942)" and "cancellation of the permission" shall be respectively amended as "the Tax Agent Law (Law No.237 of 1951)" and "cancellation of the enrollment, cancellation of the permission" ;and in Article 57 paragraph 2 item 1, "tax agent" shall be added next to "accountant" . 36 The Administrative Scrivener Law (Law No.4 of 1951) shall be partially amended as follows: Article 2 paragraph 2 item (4) shall be made item (5) of the same paragraph;and the following one item shall be added next to item (3) of the same paragraph: (4) Those who have been qualified to be tax agent. Prime Minister YOSHIDA Shigeru Attorney-General OHASHI Takeo Minister of Finance IKEDA Hayato