Anyone have any experience on this matter?
I’ve filed annual taxes for ‘additional income’ on and off for 8 years- stock sales, etc.
For 2021 (filed this April) I used a tax agent for the first time. I just got an email from the agent saying they’ve received a bill for ‘pre-paid’ tax payment. Apparently, I’m being charged for additional tax that I ‘may’ owe for 2022, before I’ve even ‘potentially’ made any gains. Since I know that I actually won’t make additional income for 2022, this is effectively an interest free loan to the government of Japan, and something about this just screams corruption.
Out of principle, I’m on the fence right now about simply ignoring them until April next year and then filing for 0 income. What can they do, charge me for income tax I never owed?
Obviously I want to do the right thing, but in principle this is absolutely corrupt.
Thoughts?
3 comments
Ignore and pay additional penalty interest.
If your 2021 tax return had more than JPY 150k tax due, the tax office makes you pay pre-paid tax. The payment due dates this year are Aug 1 and Nov 30, so if you didn’t complete the 1st payment yet, expect to be assessed additional interest.
If you don’t plan on making additional income this year, you can submit the tax reduction application, so it’s not really a “corruption”. The deadline to submit the application to reduce it all was July 15 though, so you should make the 1st payment ASAP and submit the reduction application for the 2nd payment due Nov 30 before the application deadline.
> What can they do, charge me for income tax I never owed?
They will charge you interest on it until you pay it and if you ignore it long enough they’ll just take it from you.