Tax Controversy Japan Update 2024

Tax controversy trends

1. Tax controversy trends

(1) Tax audits

According to the latest fiscal year (FY) 2023 statistics on tax audits (July 2022 through June 2023) published by Japan’s National Tax Agency, the number of field audits of corporate taxpayers in FY 2023 increased by 51.2% from FY 2022, and the total amount of income found in FY 2023 increased by 29.4% from FY 2022. The total amount of corporation tax imposed by field audits in FY 2023 increased by 29.9%. These increases indicate that tax audit activities continued to expand in FY 2023.

The number of field audits on corporations for consumption tax in FY 2023 increased by 52.5% from FY 2022, and the total amount of consumption tax imposed by field audits in FY 2023 increased by 56.3%, which indicates that consumption tax continued to be one of the major tax audit focal points in FY 2023. In particular, the tax authorities conducted intensive tax audits of corporate taxpayers claiming a refund of consumption tax, conversely imposing JPY 56 billion on those taxpayers.

Please refer to our Tax Controversy Japan Updates 2024.

* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.

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