This research report is an academic commentary prepared by the Tax Archives of the Tax Information Center, Research Department of the National Tax College, in conjunction with the special exhibition "Modern Japanese Tax Administration and Related Private Organizations: Partners Supporting Taxation" for fiscal year 2024. Based on over 200,000 historical materials housed in the Tax Archives, this study provides a detailed analysis of the historical evolution of private organizations that have supported Japan's tax administration, from taxpayer associations in the Meiji era to various related private organizations formed with the introduction of the self-assessment tax system after World War II.
From the Meiji to the Taisho periods, after tax offices were established in 1896 (Meiji 29), the number of taxpayers increased rapidly while the number of tax officials remained virtually flat. To compensate for this personnel shortage, taxpayer associations were established throughout the country. Notably, textile trade associations began receiving subsidies in 1922 (Taisho 11) in exchange for assisting in the collection of textile consumption taxes, a system that expanded to other industry organizations including sake brewing associations. By 1926 (Taisho 15), sake brewing associations also began receiving subsidies of one yen per 10 koku of assessed production, establishing a framework where industry associations supplemented the tax authorities' labor shortage.
During the Showa era, as the number of taxpayers surged under the wartime system, the Taxpaying Facilities Act was enacted in 1943 (Showa 18), designating neighborhood associations and village associations as taxpaying organizations. Simultaneously, the Tax Agent Act was also enacted, institutionalizing what had previously been an unregulated tax representation industry. Tax agents were expected to serve as "benevolent guides for taxpayers" and contribute to the smooth operation of tax administration during wartime. However, these systems would undergo major reforms following post-war democratization.
The introduction of the self-assessment tax system after World War II brought fundamental changes to Japan's tax administration. The 1947 (Showa 22) tax reform shifted from the assessment taxation system to the self-assessment system, promoting tax democratization. The 1949 Shoup Mission recommended raising the competency standards for tax agents, leading to the abolition of the Tax Agent Act in 1951 (Showa 26) and the enactment of the Certified Tax Accountant Act. The new certified tax accountant system expanded the scope of practice to include not only national taxes but also local taxes, with stricter qualification requirements.
During this period, various related private organizations were formed to promote tax morality and achieve tax democratization and fairness. Tax payment savings associations were established during the post-war confusion to secure tax payment funds, blue return associations promoted filing based on accurate bookkeeping, corporate tax associations facilitated proper corporate tax filing, indirect tax associations supported understanding and payment of indirect taxes, and taxpayer associations worked to disseminate tax knowledge, particularly in the Kansai region.
This research report historically demonstrates that Japan's tax administration has been built on public-private cooperation. The system of supplementing insufficient government resources such as budget and personnel through cooperation from taxpayer organizations represents an extremely rare case with few parallels overseas. Currently, the National Tax Agency continues to promote various initiatives through cooperation with related private organizations, including expanding e-Tax usage, promoting the adoption and establishment of the My Number system, and implementing "Tax Awareness Week," playing an important role in realizing a proper self-assessment tax system.