[4] On June 1, 1949, NTA was established as an affiliated agency of the Ministry of Finance, responsible for assessing and collecting national taxes.

This taxation system basically presupposes taxpayer's willingness to pay taxes, continue accurate bookkeeping behavior and calculate their taxable income based on objective data.

To foster the practice of bookkeeping, the blue return system was introduced in 1950 as a part of comprehensive tax reform based on the recommendations of Dr. Carl Shoup.

While these taxpayers are required to maintain books and keep continuous accounting records in accordance with prescribed standards, they are entitled by law to various income calculation benefits and preferential treatments.

[9] The Pacific Association of Tax Administrators (PATA) issued internal operational guidance in respect of mutual agreement procedures (MAP) and bilateral advance pricing arrangements (BAPA).

PATA is composed of representatives from the tax administrations of Australia, Canada, Japan, and the United States.

[10][11] On June 21, 2012, the Financial Services Agency (FSA), the Ministry of Finance (MOF) and the National Tax Agency (NTA) and the United States authority (the Treasury Department) have released a joint statement regarding a framework for intergovernmental cooperation to facilitate the implementation of FATCA and improve international tax compliance.