With the intention of pressing criminal charges against diesel fuel companies that are delinquent on large tax payments, local government officials on Thursday began searching offices of agents that owe a total of 760 million yen to Tokyo and Tottori Prefecture.

Officials of the two municipal tax bureaus suspect Miyazaki Shoji Yugen Co. and Ishikawa Shoten of passing on diesel fuel purchased at pretax rates to retailers, and then failing to pay local diesel taxes of 32.1 yen for each liter transferred.

The fuel was passed on to retailers introduced by Sanko Shokai, a Tokyo-based petroleum fuel broker, officials said. Authorities are searching 23 locations, including Sanko Shokai's office and those of the two companies, both located in Kanagawa Prefecture, for evidence of a possible violation of local tax laws.

Criminal charges of tax evasion have conventionally been filed when a suspect submits false tax forms.

This is the first time that local government officials are moving toward pressing charges against companies that fail to pay taxes after filing accurate forms.

According to one metropolitan analysis, over 35 billion yen in unpaid diesel taxes are owed to 31 prefectures.

In Tokyo alone, 15 companies owe 4.5 billion yen.

Local bodies have been hard-pressed to collect unpaid taxes when the delinquent companies are either in dire financial straits or are paper companies set up to purchase large amounts of imported diesel fuels in duty-free zones.

Both Miyazaki Shoji and Ishikawa Shoten were stripped of their special agent status to purchase fuel at pretax rates in fiscal 1999.