How Are Tax Audits Conducted in Japan? Part 2

【Koshida Accounting Firm Column Date:

The hardest thing in the world to understand is income taxes. – Albert Einstein




Hi, my name is Taisei Koshida, and I am a certified public accountant as well as a tax accountant.


I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.


If you are unsure about Japan’s taxe audits, this blog can be helpful for you.




How many tax officers will come during tax audits?

In the case of small businesses, usually only one officer is assigned. During the period of training of new employees, it’s common for both a veteran supervisor and the newcomer to come together.


How long does a tax audit typically last?

The actual visit to the company to conduct the survey often takes two days for smaller companies. In cases where discrepancies or errors are discovered, tax audits typically conclude after a negotiation period of about one month.


Is it true that they won’t leave until they find errors?

No, that’s not true. Sometimes tax audits conclude without any discoveries. Additionally, in cases of minor errors, it is often sufficient for the tax officer to issue a warning without requiring the refiling of tax returns.


How many accounting periods are tax audits conducted for?

Usually, tax audits are conducted for the most recent three accounting periods. However, in serious tax evasion cases, tax audits can be conducted going back up to seven accounting periods.



This theme is continued in the following.

How are tax audits conducted in Japan? part 3


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