Is failing to pay taxes because there are no funds to appropriate also subject to punishment for the crime of tax evasion?

You can apply for a deferral of the tax payment itself. However, in this case, recognized requirements sufficient to approve the deferral of payment are needed, such as the business being in a serious crisis.

You can obtain a deferral of payment by applying for an extension of the payment deadline, but in this case, approval that an extension of the deadline is necessary is required, taking into account matters such as serious injury of the taxpayer and the taxpayer's circumstances and economic situation.

While I cannot know your situation clearly, if the delinquency is already ongoing, it appears that you will be able to obtain a reduction of punishment only by proving that there was no intent in connection with it.

Under the National Tax Collection Act, if the tax is not paid even during the demand period after the payment deadline has passed, the taxpayer's property is seized and disposed of through a compulsory collection procedure to cover the delinquent tax amount.

If you become delinquent on your taxes on the ground that you have no money due to economic hardship, you will suffer the following disadvantages.

A disposition for delinquency, that is, the seizure and sale of the delinquent taxpayer's property, may take place.

However, if there is intent and you come to be charged with evasion through a wrongful act, the Punishment of Tax Evaders Act may apply.

Tax evasion is established when the tax amount is diverted, or a refund or deduction is received, through fraud or other wrongful acts.

The Punishment of Tax Evaders Act is a statute that provides for criminal punishment where a taxpayer intentionally evades taxes or commits wrongful acts, and, as you mentioned, you do not end up serving a prison term merely for being unable to pay taxes because you truly have no money.

However, when taxes have been evaded through the fraud or wrongful methods referred to in the Punishment of Tax Evaders Act, if you cannot provide a specific explanation for acts of strong intent, such as issuing false tax invoices for large amounts rather than a mere mistake, you may be subject to punishment for tax evasion.

Tax evasion If you are punished on this charge, you may be subject to imprisonment for up to three years or a fine of up to three times the evaded tax amount.

Where the offense is committed habitually, imprisonment and a fine may be imposed concurrently.

In order to prove that you faithfully filed your tax returns, such as value-added tax and corporate tax, and that there was no intent in the tax delinquency, we recommend that you receive the assistance of an attorney specializing in tax evasion.