Tax Controversy Japan Updates

This article provides an overview of areas of focus and the tax audit and controversy procedure in relation to national tax (excluding customs duty) in Japan.

Tax Controversy Japan Updates 2021

1. Tax controversy trends amid the COVID-19 pandemic
(1) Tax audits amid COVID-19 pandemic

According to the statistics on tax audits in fiscal year (FY) 2020 (July 2019 – June 2020) published by Japan’s National Tax Agency, the number of field audits of corporate taxpayers in FY 2020 dropped by 22.9% from FY 2019, an apparent impact of the COVID-19 pandemic. During the first half of 2020, COVID-19 started to spread across Japan and a state of emergency was declared. During this time, the tax authorities refrained from doing field audits, which contributed to the drop in audits in FY 2020.


Please refer to our Tax Controversy Japan Updates 2021.



* 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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