What Are Japanese Tax Officers Like During a Tax Audit?
【Koshida Accounting Firm Column Date:】
Hi, my name is Taisei Koshida, and I am a certified public accountant and licensed tax accountant in Japan.
I support foreign business owners and individuals with accounting and tax matters in Japan, including tax filings and tax audits in English.
If you are facing a tax audit in Japan, you may wonder what Japanese tax officers are actually like and how they usually conduct their investigations.
Based on my experience assisting clients with Japanese tax audits, this article explains several common characteristics of tax officers and what taxpayers should expect when dealing with them.
Japanese Tax Officers Are Ordinary People
Japanese tax officers are regular civil servants, and there is no need to fear them.
Japanese Tax Officers Require Evidence
When taxpayers answer their questions, tax officers generally want supporting evidence rather than relying only on verbal explanations.
For example, if they consider travel expenses unusually high, they may ask for invoices, receipts, travel records, or other documents from the travel company.
They Frequently Conduct Third-Party Investigations
If tax officers have doubts about a taxpayer’s explanation or documents, they may contact third parties such as clients, suppliers, restaurants, or travel companies to verify the facts.
This kind of third-party confirmation is a normal part of tax audit procedures in Japan when the tax office believes additional verification is necessary.
Their Job Requires Skepticism
It is important to understand that tax officers are trained to be skeptical.
Their job is to verify whether tax returns and accounting records are accurate. If they simply accepted every explanation without checking the facts, the tax system in Japan would not function properly.
Therefore, questions that may feel suspicious or persistent from the taxpayer’s perspective are often simply part of their job.
If you would like to learn more about the actual process of a Japanese tax audit, please see:
How Are Tax Audits Conducted in Japan?
Tax Audit Support in Japan
Koshida Accounting and Tax Office assists foreign business owners and individuals with accounting, tax filings, and tax audits in Japan.
If you are looking for an accounting firm in Japan that can provide English support during a tax audit, we can help you review your accounting records, prepare supporting documents, attend the audit, and communicate with the tax office.
Please feel free to contact us through the inquiry form.