2003 Fiscal Year Final Research Report Summary
Research for tax risk control by taxpayer
| Project/Area Number |
14520027
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public law
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| Research Institution | Keio University |
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Principal Investigator |
YOSHIMURA Norihisa Keio University, Law Faculty, Tax Law, Associate Professor, 法学部, 助教授 (80230811)
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| Project Period (FY) |
2002 – 2003
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| Keywords | tax agreement / reconciliation / tax risk |
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| Research Abstract |
(1)The tax risks that a taxpayer should take are the following risks. (1)audit risk, (2)unexpected taxation risk, (3)litigation risk, (4)private transaction hindrance risk. First of all, the peace of the private life is disturbed, when the place audit is carried out as an exercise of the investigation right of the Tax Authority. The social confidence of the taxpayer is injured by the place audit. These are called as audit risk. Next, the biggest thing is unexpected taxation risk as the tax risk of the taxpayer. That is, the tax return of a taxpayer is corrected by the Tax Authority and the taxpayer is exposed to unexpected higher taxation. Thirdly, if the taxpayer must do administrative appeal or lawsuit against the tax assessment, he may possibly loss a lot of time and cost and also there is not the prospect of winning the tax suit. This is a litigation risk. Last, the private transaction hindrance risk means that a taxpayer must change or, solved the private transaction which was already carried out, in the case that the tax assessment that did not expect at the beginning settled.
(2)It is difficult to control the audit risk before the audit start. But it is possible that solution both are satisfied is groped by measuring an agreement through the discussion with the Tax Authority after the audit. Yet, the agreement in an audit process is only weak in terms of legal binding force.
(3)The unexpected taxation risk is controlled by such agreement that is symbolized on the advance pricing agreement transfer pricing adjustment.
(4)It is also possible that the litigation risk may be controlled by the agreement, in other words, reconciliation in litigation. But the reconciliation in tax litigation should be prohibited from a viewpoint of no taxation without representation rule.
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