Archive for March 5th, 2010

Corporations – penalties and interest

March 5, 2010  |  Corporate tax administration  |  No Comments

Picture of Samurai taken in around 1890

Outline – Japanese tax interest and penalties

This post discusses types of interest and penalties – or futaizei/f付帯税- under Japanese tax law. there is a wide range of different tax penalties in Japan with rather confusing and overlapping names similar economic functions. Also, in contrast to UK or US tax practice, penalties and interest cannot be mitigated at the discretion of the tax authorities although mitigation is available in certain prescribed circumstances under the law (such as destruction of records owing to natural disaster – see the comments under each section). Also under some circumstances the economic impact of the interest and penalties can be disproportionate to a subjective assessment of the wrong doing in the facts and circumstances that gave rise to the penalty. For example, penalties may still be very material if you are a day late compared with being a year late with filing your return. Read More