Request for administrative review When a request is filed, each case is assigneda presiding tribunal judgeunder Article 94 of the General Act of National Taxes. Knowing who conducts the examination, as prescribed by law, helps you understand the procedure ahead.

At least three judges per case

Article 94(1) provides:

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

There is one presiding judge and at least two participating judges. At least three judges therefore examine the case.

Under Article 98(4), the decision must be madebased on the resolution of the presiding and participating tribunal judges(except dismissal without examination proceedings). The presiding judge does not decide alone.

Certain people cannot be designated

Article 94(2) lists seven categories of people who must not be designated.

Item (i) is central.Anyone involved in the disposition cannot serve as the presiding tribunal judge.The same applies to anyone involved in deciding the request for reinvestigation.

An assistant tribunal judge cannot be the presiding judge

Article 79(3) contains a proviso.

It permits assistant national tax tribunal judges designated by the Director-General of the National Tax Tribunal to perform the duties of national tax tribunal judges, but states:“Provided, however, that this does not apply to duties assigned to the presiding tribunal judge under this Act.”That is the proviso.

The duties of the presiding judge must be performed by a national tax tribunal judge.

What the presiding tribunal judge can do

Under Article 97(1), where necessary for the examination, the presiding tribunal judge may,on application by a party to the proceedings or on the judge's own authority,take the following actions.

• (i) Question the review requester, the original disposition authority, relevant parties, or other persons who may provide informationQuestionas necessary.
• (ii) Set a reasonable period and require the owner, holder, or custodian of those persons' books, documents, or other objects tosubmit them,or retain objectsthat have been submittedfor examination.
• (iii) Examine those persons' books, documents, or other objectsby inspectionas necessary.
• (iv)or have an expert conduct an appraisalof them.

A distinctive feature is the ability to act “on the judge's own authority.” The tribunal can take the initiative rather than deciding solely on materials submitted by the parties.

Under paragraph (2), national tax tribunal judges, assistant judges, and other staff may carry out item (i) (questioning) and item (iii) (inspection) at the presiding judge's request or instruction.

Paragraph (3) requires officials conducting questioning or inspections to carry identification and present it upon a relevant person's request.

Then there is paragraph (5).

The authority of the officials specified in paragraph (1) or (2)must not be construed as having been granted for criminal investigation.。

Right to inspection and questioning A provision to the same effect as Article 74-8 concerning this authority also applies to the tribunal.

What happens if you do not cooperate?

There are two provisions.

Article 97(4)provides that if a review requester or other specified person refuses without just cause to answer questions, submit requested materials, or permit inspection, making it extremely difficult to establish the basis of all or part of their arguments, the Director-General of the National Tax Tribunalmay decline to accept those arguments.That is the consequence.

Article 129sets out a penalty. Failure to answer questions, giving false answers, refusing, obstructing, or evading inspection, or presenting books or documents with false entries is punishable bya fine of up to ¥300,000.This is the prescribed penalty.

However, there is a proviso:This does not apply to the review requester or other specified persons under Article 97(4).The penalty does not apply to the review requester personally. The adverse consequence takes the form of their arguments not being accepted.

Planning the proceedings

Article 97-2 permits the presiding tribunal judge, where there are numerous matters to examine or intertwined issues, to specify a date and place, summon the parties to the proceedings, and hear their opinions in advance.

If a party lives far away or it is otherwise considered appropriate,a method allowing communication through transmission and reception of audiomay also be used (paragraph (2)).

After hearing opinions, the judge determines and notifies the parties of the dates and places of the examination proceedings andthe expected date of conclusion of the proceedings(paragraph (3)).

How proceedings end

Article 97-4(1) provides that the presiding tribunal judge shall conclude the proceedings when the judge considers the necessary examination complete.

Paragraph (2) also permits conclusion when a response, rebuttal, participant's statement, documentary evidence, or similar materials are not submitted within the specified period even after a further deadline is set, or when someone who requested an oral statement fails to appear without just cause.

When proceedings conclude, the parties are promptly notified (paragraph (3)). The case then moves toward a decision.

Common practical questions

• We are asked whether the process differs depending on the presiding tribunal judge. The statute specifies grounds for disqualification but says no more on that point.
• How should investigations on the judge's own authority under Article 97(1) be viewed? They can work either for or against you.
• Together with inspection of materials and provision of copies under Article 97-3, you need to plan what to seek during the examination.

Requests for review primarily involve written exchanges, but there are opportunities to act through oral statements and investigations on the tribunal's own authority. Consult us from the strategy-setting stage.

Legal basis

• Article 74-8 of the General Act of National Taxes (Interpretation of Authority)
• Article 79 of the General Act of National Taxes (National Tax Tribunal Judges and Others)
• Article 94 of the General Act of National Taxes (Designation of Presiding Tribunal Judges and Others)
• Article 97 of the General Act of National Taxes (Questioning, Inspection, and Other Measures for Examination)
• Article 97-2 of the General Act of National Taxes (Planned Conduct of Examination Proceedings)
• 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 109 of the General Act of National Taxes (Participants)
• Article 129 of the General Act of National Taxes

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