Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
How common are tax audits in Japan, and should businesses be worried?
Japan’s tax system is based largely on taxpayers filing their own tax returns, so tax audits are a normal part of checking whether those returns are correct.
A tax audit does not necessarily mean that the tax office suspects serious wrongdoing. In many cases, it is simply a procedure for confirming the figures and supporting documents reported in the tax return.
For that reason, businesses do not need to be excessively afraid of a tax audit if their accounting records and tax filings have been properly prepared.
The Points in Tax Audits in Japan