1307 Outline of Additional Tax System and Heavy Additional Tax System (FAQ)

(1) Additional Tax for Under Report
  When an amended declaration or reassessment is made, in compliance with customs' audit that reveals inappropriate declaration, an additional tax for Under Report shall be, in principle, imposed in an amount equivalent to 10% of the amount that is increased by amended declaration or reassessment. If an amended declaration is made, on or after the following day of a notification of audit prior to the awareness of possible reassessment, 5% additional tax for Under Report is imposed on the increased amount. No additional tax is imposed if there are reasonable grounds for the Under Report. If an amended declaration is voluntarily made before a notification of tax audit, no additional tax is imposed.

(2)  Additional Tax for Non-Declaration
  When goods that are supposed to be declared are imported without declaration, a determination by customs is made, or an amended declaration or reassessment after that determination is made, additional tax for Non- Declaration is imposed in an amount equivalent to 15% of the payable tax amount.
  If an amended declaration is made on or after the following day of a notification of audit prior to the awareness of possible reassessment, an additional tax for Non-Declaration shall be imposed in an amount equivalent to 10% of the payable tax amount.
  No additional tax is imposed if there are reasonable grounds for Non- Declaration.

(3)  Heavy Additional Tax
  When importers, who are imposed “additional tax for Under Report” mentioned above in (1), disguise or hide the underlying facts for taxable values, etc., and they have declared based on those facts, a heavy additional tax shall be imposed in an amount equivalent to 35% of the underlying amount for additional tax for Under Report, instead of an additional tax for Under Report concerning that underlying tax amount.
  When importers, who are imposed “additional tax for Non-declaration” mentioned above in (2), disguise or hide the underlying facts for taxable values, etc., and they have imported without declaration, a heavy additional tax shall be imposed in an amount equivalent to 40% of the underlying amount for additional tax for Non-declaration, instead of an additional tax for Non- Declaration concerning that underlying tax amount.

  (Article 12-2, 12-3 and 12-4 of the Customs Law)