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7. Adjustments, Collection, and Refund
a. Adjustments
	(1) Adjustments
		Only in the following cases shall the competent tax authority reassess, through an
		investigation, the value-added tax base and tax amount payable or tax amount
		refundable for the taxable period:
		(a) when the final tax return is not filed;
		(b) when details of the final tax return are erroneous or have any omissions;
		(c) when filing the final tax return, a schedule of summary of the tax invoices has not
			been submitted in whole or in part;
		(d) in cases other than under (a) to (c), where value-added tax is likely to be evaded
			for the following reasons:
			i)  when the place of business is changed frequently;
			ii)  when the place of business is located in an area where places of business
				are deemed to change frequently;
			iii) when the business is in a state of suspension from operations or liquidation.
	(2) Adjustment by estimation
		In the case of a reassessment of tax amount payable or tax amount refundable for
		each taxable period pursuant to the provision of (1), the competent tax authority shall
		reassess them on the basis of tax invoices, accounting books, and any other
		evidence; however, in the following cases, the reassessment may be made by
		estimation:
		(a) when the tax invoices, accounting books, and any other evidence necessary for
			the calculation of the tax base are either missing or incomplete in major portions;
		(b) when details of the tax invoices, accounting books, and any other evidence are
			evidently false in view of the capacity of the facilities, number of employees, and the
			market prices of raw materials, commodities, products, or various charges;
		(c) when details of the tax invoices, accounting books, and any other evidence are
			evidently false in view of the quantities of raw materials used, electric power used,
			and other operating status.
b. Inquiry and Investigation
	(1)   Where it is necessary to make an investigation, the tax officials concerned may
		make an inquiry into the related matters or investigate business records and articles
		related thereto.
	(2)   Where it is necessary to preserve the right for value-added tax or to investigate the
		matters related thereto, the competent tax authority may order taxpayers to present
		business records and articles related thereto, and may request any other necessary
		materials.
c. Penalty Tax
	(1) Penalty taxes on failure of registration
		In cases where one fails to register his or her business within 20 days from the
		beginning date of business, a penalty tax in the amount equivalent to 1% of the value
		of supply shall be either added to the tax amount payable or deducted from the tax
		amount refundable from the starting date of the business to the preliminary tax return
		period on which the date of application for registration falls (in case the preliminary
		tax return period has elapsed, the respective taxable period).
	(2) Penalty taxes on failure to issue or present a schedule of summary of tax invoices
		Where a trader falls under one of the following categories, an amount equivalent to
		1% of the value of supply is added to the tax amount payable or deducted from the tax
		amount refundable (in the case of delayed presentation of a schedule of summary of
		tax invoices by sales place; an amount equivalent to 5/1000;
		(a) where a trader has not issued tax invoices, necessary items to be recorded are
			not recorded or are proved to be different from the transaction information in full or in
			part; or
		(b) where a trader whose tax base and tax amount payable or refundable are
			corrected by the competent tax office and where a trader submits to the competent
			tax office a schedule of summary of tax invoices (including the receipts issued by
			cash register or sales slips of credit card) which a trader received and the input tax
			amount is deducted from the output tax amount.
	(3) Penalty taxes on default on return and payment
		(a) In the case where a trader fails to file a return, or where the tax return filed shows
			a tax amount less than that duly payable by him, or where the tax return filed shows
			higher tax amount refundable than is duly refundable, 10% of unpaid or underpaid
			amount or the amount of excess refund
		(b) Where a trader has not paid the tax amount payable or where the paid tax amount
			is less than that duly payable; unpaid tax amount; the amount of excess refund
				* number of days of the delayed period X 3/10,000
	(4)    Where a person has failed to file a tax return on a zero-rating tax base or has
		under-declared the zero-rate tax base if the tax return was filed, an amount equivalent to
		1% of the tax base not declared or under-declared is charged as a penalty.
	(5)    Where any person who has received the supply of services in the case of payment
		by proxy has not paid the value-added tax to the competent tax office in accordance with
		the payment by proxy, the tax office shall collect the unpaid tax amount plus 10% of said
		tax amount, according to the examples of the collection of national taxes.
d. Collection
	(1)    Where a trader has actually paid the tax amount which is less than the returned tax
		amount, the competent tax office should, in such a manner as is used for the collection
		of national tax, collect the unpaid tax amount, or in the case of adjustment or correction,
		the additional tax amount payable.
	(2)    Where a trader has failed to file a preliminary return, or has filed an incorrect or
		incomplete return, the competent tax office may investigate and determine the tax base
		and tax amount and collect the tax amount due.
	(3)    Collectors at customs houses collect value-added tax in such a manner as is
		used for the collection of customs duties.
e. Refund
	(1) Ordinary refund
		The competent tax office refunds to a trader the tax amount refundable for each
		taxable period concerned based on each taxable period.
	(2) Early refund
		Where a trader falls under any of the following categories, the competent tax office
		may refund the tax amount refundable to the trader within 15 days from the ending
		date of the preliminary return:
		(a) in the case of zero-rate;
		(b) in the case where a trader newly establishes, acquires, expands, or extends the
			business facilities.