“A guilty conscience needs to confess. A work of art is a confession.” ― Albert Camus
Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.
I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.
The National Tax Agency has released the outline of tax audits for companies covering the period from July 2022 to June 2023.
１.The Outline of On-Site Tax Audits for Companies with Corporate and Consumption Tax
The number of on-site audits was 62,000 cases, a 52% increase from the previous period. The additional tax amount per audit was 5,241,000 yen, an 8% decrease from the previous period. Prior to COVID, the annual count was around 100,000 cases, indicating that the current number is still relatively low. The rate of errors discovered during audits was 75%, meaning that mistakes were found in three out of every four companies audited.
２.The Outline of Simplified Contact for Companies with Corporate and Consumption Tax
On-site audits involve tax officers visiting the taxpayer’s office. Conversely, there is a method called ‘simplified contact,’ where tax officials encourage taxpayers to voluntarily amend their tax returns through phone calls or written correspondence. This year, the number of such simplified contacts was 66,000 cases, similar to the previous period’s 67,000 cases. The additional tax amount per case was approximately 100,000 yen.
３. The Rate of Approaches to Taxpayers
The rate of approaches to taxpayers, combining items 1 and 2 above, is 3.9%, an increase of 0.6% from the previous period. The cumulative approach rate over the past five years is 17.8%, which implies that approximately 20% of corporations receive some form of contact from the tax office at least once every five years.
If you would like to learn more about tax audits in Japan, please refer to the information below.
https://kotsicpafirm.com/how-are-tax-audits-conducted-in-japan/
The publication released by the National Tax Agency is as follows.
令 和 ４ 事 務 年 度 法 人 税 等 の 調 査 事 績 の 概 要
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