National Tax Agency JAPAN＞Press Release＞Statistics on Audit on Inheritance Tax for Business Year 2002

October 2003
National Tax Agency

Statistics on Audit on Inheritance Tax for Business Year 2002

1

(1) 11,405 cases (in comparison with 10,282 cases in the previous business year) were audited for the inheritance tax during business year 2002 (between July 2002 and June 2003) including those which were deemed to have declared deficient taxable amount, based on the data and information collectedby regional tax bureaus and tax offices.
As a result, the audit revealed 10,171 cases of deficient declaration (in comparison with 9,299 in the previous business year). The ratio of these cases to the whole audited cases was 89.2 percent (90.4 percent in the previous business year).

(2) The undeclared taxable amount was 374.8 billion yen, 28.5 billion yen (8.2 percent) increase from 346.3 billion yen of the previous businessyear.
The undeclared taxable amount per audit that reveals undeclared taxable amount was 36.85 million yen (37.24 million yen in the previous business year), 390,000 yen decrease from the previous business year.

(3) The undeclared tax amount was 85.4 billion yen, 8.7 billion yen (11.4 percent) increase from 76.7 billion yen of the previous business year.
The undeclared tax amount per audit that reveals undeclared tax amount was 8.4 million yen, 15,000 yen increase from 8.25 million yen in the previous business year.

(4)The breakdown by type of undeclared inherited property (373.9 billion yen) was, 141.5 billion yen for cash and deposit (37.8 percent), 75.1 billion yen for securities (20.1 percent), and 73.5 billion yen for lands(19.7 percent).

2 For audits on inheritance tax in business year 2003, we will also collect data regarding financial assets, etc. and by using various data and information we collect through every opportunity, conduct effective audit cases of no declaration or cases which are deemed to have declared deficient taxable amount.

Table

Statistics on audit on the inheritance tax

Item Business year 2001 Business year 2002 Year-on-year percentage change
1
Number of audits 		10,282 11,405 %

110.9
2
Number of non-declarations out of the number of audits 		9,299 10,171 %

109.4
  3
Number of cases in which heavy additional tax was levied out of the above item		 1,746 1,934 %

110.8
4
Undeclared taxable amount		 100 million yen

3,463 		100 million yen

3,748 		%

108.2
  5
Amount of levied heavy additional tax out of the above item 		100 million yen

613		 100 million yen

731		 %

119.3
6
Undeclared tax amount 		100 million yen

767 		100 million yen

854 		%

111.4
7
Amount of additional tax through audits 		100 million yen

118		 100 million yen

138 		%

116.8
8
Ratio of non-declarations
(2/1)		 %

90.4 		%

89.2 		point

-1.2
9
Ratio of levied heavy additional tax
(3/1) 		%

18.8		 %

19.0 		point

+0.2
10
Taxable amount per non-declaration (4/2)		 10 thousand yen

3,724 		10 thousand yen

3,685 		%

98.9
11
Tax amount per non-declaration(6/2) 		10 thousand yen

825		 10 thousand yen

840 		%

101.8

(Remark)

1 The amount of 4 is calculated by deducting debts and funeral expense of a decedent (increased or decreased amount according to audit) from undeclared property values and adding the amount of gift from a decedent (increased or decreased amount according to audit) within three years prior to the commencement of inheritance to undeclared property values.

2 The amount of 6 includes no additional tax.

[Breakdown by type of undeclared inherited found through audits]

(In 100 million yen; %)

Type Land House Securities Cash, deposit, etc. Others Total
Amount of value

735
(19.7)		 45
(1.2)		 751
(20.1)		 1,415
(37.8)		 793
(21.2)		 3,739
(100.0)