National Tax Agency Releases Latest Companies Tax Audit Overview

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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.

実地調査の件数は、６２千件で前期の４１千件から５２％増えました。調査１件当たりの追徴税額は５、２４１千円と前期の５、７０１千円からは８%減りました。 コロナの前は、毎年１０万件程度で推移してましたので、今でも低水準であると言えます。 調査で誤りが発見された割合は７５％であり、4社のうち3社で誤りが見つかったということになります。

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.

税務職員が納税者の事務所に出向いて行うのが実地調査です。一方で、電話や書面により納税者に自発的に修正申告を促す「簡易な接触」という手法もあります。 これについての今年の件数は、６６千件と前期の６７千件と同レベルです。１件当たりの追徴税額は１０万円程度です。

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.

上記の１と２を合計した納税者へのアプローチの割合は、３．９％であり、前期より０．６％増えています。なお、過去５年の累計のアプローチ率は１７．８％であり、２割程度の法人は５年に１回は税務署からなんらかの接触があることを意味します。

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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