When you disagree with a reassessment or similar disposition, the procedure for seeking a third-party determination isRequest for administrative reviewa request for review. The body that makes the determination is theNational Tax Tribunal.Its framework is set out in Article 78 onward of the General Act of National Taxes.

It is an administrative body, not a court. However, it is established separately from the tax office or regional taxation bureau that made the disposition.

What is the National Tax Tribunal?

Article 78(1) provides:

The National Tax Tribunal shall be the body that, in response to requests for review of dispositions under laws concerning national taxes,renders decisions.That is its role.

Paragraph (2) provides that the head of the National Tax Tribunal is its Director-General, who isappointed by the Commissioner of the National Tax Agency with the approval of the Minister of Finance.This is the appointment procedure.

Under paragraph (3), to handle part of its work, the tribunal establishesbranchesat necessary locations. One national tax tribunal judge serving at each branch becomes theChief National Tax Tribunal Judgeand supervises the branch's work (paragraph (4)). Branch names and locations are prescribed by Ministry of Finance Order (paragraph (5)).

Who conducts the examination?

Under Article 79(1), the National Tax Tribunal hasnational tax tribunal judgesandand assistant national tax tribunal judges.These positions are established at the tribunal.

National tax tribunal judges investigate and examine cases concerning requests for review, while assistant judges organize the work under their instructions (paragraph (2)). Qualifications for national tax tribunal judges are prescribed by Cabinet Order (paragraph (4)).

Then Article 94(1) provides for

The Director-General of the National Tax Tribunal shall, to conduct the investigation and examination of a case concerning a request for review, designatea presiding tribunal judge one presiding judge and at least two participating judges.These judges are designated for the case.

Each case is thus examined by a panel of at least three.

Paragraph (2) lists seven categories of people who must not be designated.Anyone involved in the disposition or request for reinvestigation the decision on the request(item (i)), the review requester, their relatives, or their representative (items (ii) through (v)), and others are excluded.

The procedural flow

In the order of the statutory provisions, the process is as follows.

The “original disposition authority” in Article 93(1) means the head of the administrative body responsible for the disposition being reviewed. The term is also defined in that paragraph.

You can see documents submitted by the other side

Article 97-3(1) is particularly important in practice.

Until the examination proceedings conclude, parties to the proceedings may ask the presiding tribunal judge forinspection of documents and other objectssubmitted under Article 96 (Submission of Documentary Evidence and Other Materials) or Article 97(1)(ii) (Requests for Submission for Examination), or forcopiesof them.

The presiding tribunal judge“may not refuse inspection or provision of copies unless there is a risk of harming a third party's interests or other just cause.”That is the statutory rule.

The provision is written so that refusal is the exception.

A fee in the amount prescribed by Cabinet Order is payable for copies (paragraph (4)). It may be reduced or waived for financial hardship or other special reasons (paragraph (5)).

You can state your views orally and question the original disposition authority

Under Article 95-2(1), if the review requester or a participant applies, the presiding tribunal judge must provide an opportunity to state opinions orally.

Paragraph (2) provides:

When making a statement of opinions under the preceding paragraph, the applicant may, with the presiding tribunal judge's permission, concerning the case under review,ask questions of the original disposition authority.。

Permission is required, but this provides an opportunity to question the tax office or regional taxation bureau directly.

Three types of decisions

Article 98 provides:

• Paragraph (1)Dismissal as inadmissible(where the filing period has expired or the request is otherwise procedurally invalid)
• Paragraph (2)Appeal dismissed(where the request lacks merit)
• Paragraph (3)Revocation or modification(where the request has merit). However,the disposition may not be modified to the review requester's disadvantage.
• Paragraph (4): the decisionbased on the resolution of the presiding and participating tribunal judgesmust be made on the prescribed basis.

Because of paragraph (4), the presiding judge does not decide alone.

The tribunal can reach a conclusion that differs from a circular

Under Article 99, when the Director-General of the National Tax Tribunalrenders a decision based on an interpretation of law that differs from the interpretation in a circular issued by the Commissioner of the National Tax Agency,or renders a decision considered to constitute an important precedent, the Director-General must notify the Commissioner of that opinion in advance.

Under paragraph (2), unless the Director-General's opinion accepts the review requester's arguments and the Commissioner considers it appropriate, the Commissioner and Director-General must jointlyconsult the National Tax Council.If consultation occurs, the Director-General renders the decision based on the Council's resolution (paragraph (3)).

The statute therefore provides a route to a conclusion different from a circular.

The decision binds the administrative authorities

Article 102(1) provides:

A decision binds the relevant administrative authorities.

If the disposition is revoked, the administrative body must comply.

Common practical questions

• How should arguments and evidence be organized? Article 87(3) requires that the grounds “make clear the review requester's arguments against the reasons for the disposition notified in the notice of disposition or other written document.”A rebuttal addressing the reasons for the dispositionis required.
• How extensively should you use inspection and copies under Article 97-3?
• What should you ask during the oral statement?

The quality of preparation directly affects the outcome of this procedure. Consult us when you receive the disposition.

Legal basis

• Article 78 of the General Act of National Taxes (National Tax Tribunal)
• Article 79 of the General Act of National Taxes (National Tax Tribunal Judges and Others)
• Article 87 of the General Act of National Taxes (Contents of Requests for Review and Related Matters)
• Article 91 of the General Act of National Taxes (Correction of Requests for Review)
• Article 93 of the General Act of National Taxes (Submission of Responses and Related Matters)
• Article 94 of the General Act of National Taxes (Designation of Presiding Tribunal Judges and Others)
• Article 95 of the General Act of National Taxes (Submission of Rebuttals and Related Materials)
• Article 95-2 of the General Act of National Taxes (Oral Statements of Opinions)
• Article 96 of the General Act of National Taxes (Submission of Documentary Evidence and Other Materials)
• Article 97 of the General Act of National Taxes (Questioning, Inspection, and Other Measures for Examination)
• Article 97-3 of the General Act of National Taxes (Inspection of Objects by Parties to the Proceedings)
• Article 97-4 of the General Act of National Taxes (Conclusion of Examination Proceedings)
• Article 98 of the General Act of National Taxes (Decisions)
• Article 99 of the General Act of National Taxes (Decisions Based on Interpretations Differing from the Commissioner's Interpretation of Law and Related Matters)
• Act on General Rules for National Taxes, Article 102 (Binding effect of determinations)

Article headings are verified using the statutory data from the e-Gov Law Search.