Japanese Attorney at Law - Bengoshi L.L. - Japan Compliance (Page 48)

Good Faith in Taxation: Japan's Supreme Court on the "Blue Form" System and Taxpayer Reliance

Judgment Date: October 30, 1987 In a landmark decision with profound implications for the application of general legal principles in tax law, the Third Petty Bench of the Supreme Court of Japan addressed whether a taxpayer could invoke the principle of good faith and trust (shingisoku - 信義則) to prevent

Adoption for Tax Savings: Japanese Supreme Court Upholds Validity When "Intention to Adopt" Exists

Judgment Date: January 31, 2017 In a significant decision addressing the intersection of family law and tax planning, the Third Petty Bench of the Supreme Court of Japan ruled on the validity of an adoption allegedly entered into solely for the purpose of reducing inheritance tax. The Court held that

Domicile in Tax Law: Japan's Supreme Court on the "Principal Base of Life" and Tax Avoidance Motives

Judgment Date: February 18, 2011 In a high-profile case with significant implications for Japanese tax law, often referred to colloquially as the "Takefuji Case," the Second Petty Bench of the Supreme Court of Japan delivered a pivotal judgment on the interpretation of "domicile" (住所 - jūsho)

Reading the Fine Print: Japan's Supreme Court on Literal Interpretation in Tax Law – The Hostess Remuneration Case

Judgment Date: March 2, 2010 In a significant ruling that emphasized the importance of adhering to the literal text of tax laws, the Third Petty Bench of the Supreme Court of Japan addressed a dispute over the calculation of withholding tax on remuneration paid to hostesses. The case turned on

When Public Tax Collection Meets Private Law: Protecting Third Parties in Sales Based on False Property Registrations

Judgment Date: January 20, 1987 In a significant ruling that underscores the interplay between public tax collection procedures and private law principles, the Third Petty Bench of the Supreme Court of Japan affirmed the protection granted to bona fide purchasers at tax auctions, even when the property was sold based

Preserving the State's Right to Collect: Japan's Supreme Court on Tax Collection Time Limits

Judgment Date: June 27, 1968 In a significant decision addressing the statute of limitations for the collection of national taxes, the First Petty Bench of the Supreme Court of Japan clarified how the government's right to collect can be preserved. The case delved into the interplay between the

Local Taxing Power vs. National Law: Japan's Supreme Court on Kanagawa's Special Corporate Tax

Judgment Date: March 21, 2013 In a landmark decision clarifying the boundaries of local government taxing authority in Japan, the First Petty Bench of the Supreme Court struck down a special corporate tax implemented by Kanagawa Prefecture. The Court found that the "Kanagawa Prefectural Special Ad Hoc Corporate Tax,

Taxation by Law or by Circular? The Japanese Supreme Court's "Pachinko Machine Case"

Judgment Date: March 28, 1958 In a landmark decision with enduring significance for Japanese tax law, the Second Petty Bench of the Supreme Court of Japan addressed the contentious issue of "tsutatsu taxation"—taxation seemingly based on administrative circulars—and its relationship with the constitutional principle of "

The Principle of Legality in Tax Exemptions: A Japanese Supreme Court Ruling

Judgment Date: July 6, 2010 In a decision underscoring the paramount importance of the principle of legality in tax administration, the Third Petty Bench of the Supreme Court of Japan addressed the conditions under which a taxpayer could be granted an exemption or reduction in automobile tax due to "

Retroactive Tax Law Changes: Japan's Supreme Court on Balancing Public Interest and Legal Stability

Judgment Date: September 22, 2011 In a significant ruling for Japanese tax law and constitutional interpretation, the First Petty Bench of the Supreme Court of Japan addressed the constitutionality of a mid-year tax law amendment that was applied retroactively to the beginning of that same calendar year. The case involved

Defining "Tax": Japanese Supreme Court on National Health Insurance Premiums and Constitutional Scrutiny

Judgment Date: March 1, 2006 In a landmark decision with profound implications for the understanding of "taxes" under the Japanese Constitution and the scope of parliamentary control over public levies, the Grand Bench of the Supreme Court of Japan ruled on the nature of National Health Insurance (NHI)

Landmark Japanese Supreme Court Ruling on Employment Income Taxation and Equality

Judgment Date: March 27, 1985 In a significant decision with lasting implications for Japanese tax law and constitutional interpretation, the Grand Bench of the Supreme Court of Japan delivered its judgment in a case challenging the fairness of employment income taxation compared to business income taxation. The case, formally an

Gateway to Justice: A Deep Dive into "Shobunsei" – What Constitutes a Reviewable Government "Disposition" in Japan?

When individuals or businesses in Japan believe their rights have been infringed by a governmental action, the primary legal avenue for seeking redress is often an "administrative revocation suit" (torikeshi soshō - 取消訴訟) under the Administrative Case Litigation Act (ACLA). However, not every governmental act or communication can

Shaping Modern Governance: How Landmark Supreme Court Cases Have Transformed Japanese Administrative Law

Japanese administrative law, like any robust legal system, is not static. It is a dynamic field that continually evolves, shaped significantly by the interpretive role of its judiciary, particularly the Supreme Court of Japan. In recent decades, and spurred notably by key legislative reforms such as the 2004 revision of

Untangling Liability: The Tiers of Responsibility When Private Entities Exercise Public Functions in Japan

In the previous article of this series, we explored how the Japanese government (State or local public entity) can be held liable under the State Redress Act (SRA) for wrongful acts committed by private entities and their employees when they are entrusted with performing public duties. This liability arises because

When Private Actors Perform Public Duties: Who is Liable for Damages in Japan?

In an era of evolving governance models, it is increasingly common for Japanese governmental entities—both national and local—to entrust the delivery of various public services and the performance of certain public functions to private sector actors, including corporations, non-profit organizations, and social welfare entities. This delegation can enhance

Government Inaction Leading to Harm: When is Failure to Exercise Authority Illegal in Japan?

Governmental agencies are typically vested with a wide array of powers to regulate various aspects of society, often with the aim of protecting public health, safety, welfare, and the environment. We commonly think of governmental liability arising from wrongful actions—an erroneous decision, an unlawful order, or a negligent act.

When is the Japanese Government Liable for Damages? Understanding "Illegality" in State Redress Cases

When the actions of public officials in Japan cause harm to individuals or businesses, the State Redress Act (Kokka Baishō Hō - 国家賠償法) provides a crucial avenue for seeking monetary compensation. Article 1, Paragraph 1 of this Act establishes the fundamental principle of state liability: if a public official, in

Beyond Challenging Government Orders: "Interest to Sue" in Japanese "Party Litigation"

When individuals or businesses seek to challenge governmental actions in Japan, the most commonly discussed avenue is the "revocation suit" (torikeshi soshō - 取消訴訟), which targets a specific "administrative disposition" (gyōsei shobun - 行政処分) like a permit denial or a tax assessment. However, Japanese administrative law

Is Your Lawsuit Still Relevant? The "Interest to Sue" in Japanese Administrative Revocation Actions

Successfully initiating a lawsuit against a government agency in Japan requires more than just identifying a potentially unlawful administrative action. A plaintiff must not only have "standing to sue" (genkoku tekikaku - 原告適格) at the outset, but must also generally maintain a live, concrete "interest to sue&

Protecting Your Specific Rights: The "Individual Interest Protection" Test for Standing in Japanese Administrative Law

The right to challenge a governmental action in court is a cornerstone of the rule of law. However, not everyone who feels aggrieved by a government decision is automatically entitled to sue. In Japanese administrative law, a crucial threshold requirement known as "standing to sue" (genkoku tekikaku -

Who Can Challenge Government Actions in Japan? Understanding the "Standing to Sue" Framework

When a Japanese governmental agency takes an action or makes a decision, not everyone who disagrees with it or is affected by it in some way automatically has the right to challenge that action in court through an administrative revocation suit (torikeshi soshō - 取消訴訟). A fundamental prerequisite for bringing

Can You Sue Over a Local Ordinance in Japan? The "Concreteness" Test for Challenging Municipal Rules

Local ordinances (jōrei - 条例) are a cornerstone of local governance in Japan, enacted by prefectural and municipal assemblies to regulate a wide array of activities and address local needs. These ordinances can have significant impacts on the rights and obligations of individuals and businesses operating within their jurisdictions. A

When Do Japanese Government Plans Become Concrete Enough to Challenge in Court?

Administrative plans are indispensable tools for modern governance in Japan. They guide urban development, shape infrastructure projects, manage environmental resources, and outline various public policies. However, for individuals and businesses whose properties, rights, or interests may be affected by these plans, a critical question often arises: At what precise stage

Navigating "Shobunsei": A Framework for Determining if a Japanese Government Act is Judicially Reviewable

For any individual or business seeking to challenge a governmental action in Japanese courts through an administrative revocation suit (torikeshi soshō - 取消訴訟), a critical preliminary hurdle must be overcome: the concept of shobunsei (処分性). Often translated as "dispositivity" or "actionability," shobunsei essentially determines whether a