Article 1.　War indemnity claims within the meaning of the present Law shall be such claims as stated hereunder which occurred against the Government, and, to the extent of the Government guarantee, occured against specified instrumentalities (hereinafter meaning juridical persons and other institutions as may be prescribed by Ordinance, which have been collaborating with national policies), provided, that claims arising out of normal administrative or business operation of the Government or specified instrumentalities shall be excluded therefrom:

Article 2.　A person who holds a war indemnity claim (hereinafter meaning only a claim for the supply of money with the only exception of the case as referred to in Article 65) on the enforcement of the present Law or a person who has been paid its war indemnity claim before the enforcement of the present Law shall be liable to pay war indemnity special tax in accordance with the present Law.

Article 3.　No war indemnity special tax shall be imposed on prefectures, cities, towns, villages and other public bodies as may be prescribed by Ordinance.

Article 4.　No war indemnity special tax shall be due on the following claims:

Article 5.　In case an inheritance has occurred before the enforcement of the present Law to an individual who had been paid his war indemnity claim, the payment of war indemnity claim as given to the predecessor shall be deemed, for purposes of the present Law, as given to the inheritor or its successor.

Article 6.　In case a corporation which had been given the payment of war indemnity claim has ceased to exist due to amalgamation before the enforcement of the present Law, the payment as given to the deceased corporation shall be deemed for purposes of application of the present Law as given to the corporation (or its successor) which continues to exist after, or which has been newly established by, the amalgamation.

Article 7.　In case a corporation which had been given the payment of war indemnity claim has ceased to exist due to dissolution before the enforcement of the present Law, the payment as given to the corporation shall be deemed, for purposes of application of the present Law, as given to a person (or its successor) who received by transfer special debt certificate (which has been given as the payment of a war indemnity claim, as prescribed by Ordinance, sic passim with the only exception of the cases referred to in Articles 45 and 63) or a blocked account (hereinafter meaning a blocked account, special monetary trusteeship, debtor's special debt certificate and other credits as prescribed by Ordinance, which have been given as the payment of a war indemnity claim) to the extent of the amount of the Government special debt certificate or blocked account which was received by transfer.

Article 8.　Taxable amount of war indemnity special tax shall be the amount of a war indemnity claim outstanding on the enforcement date of the present Law or the amount as paid, before the said date, to a war indemnity claim.

Article 9.　The amount of payment already given before the enforcement of the present Law to such war indemnity claims as are not listed on either of the attached table I-III (in respect to the case where the payment has been given in the form of renovation which is prescribed under Article 5 of the Enterprises Reorganization Financial Measures Law, only the amount refunded, realized, released or extinguished due to confusion, before the enforcement of the present Law, from or in a Government special debt certificate or blocked account) shall not be included in the taxable amount.

Article 10.　From the taxable amount for each claim listed on the attached table I, 10,000 yen shall be deducted.

Article 11.　The deductions by virtue of the preceding article shall not be given unless the return as prescribed under Article 14 is filed by the time-limit as prescribed under the same article;provided, however, in the case where the taxable amount does not exceed the deductions allowed, the deductions shall be given in connection with the amount of the war indemnity claim as already paid in cash or the amount already released, realized, refunded or extinguished due to confusion from or in the blocked account prior to the enforcement of the present Law even if the return fails to be filed.

Article 12.　In case juridical persons as established in accordance with Article 34 of the Civil Code and other non-profit making institutions or corporations as may be prescribed by Ordinance hold, on the enforcement of the present Law, such war indemnity claims as listed on No.1 of the attached table II, or have been paid these claims before the enforcement of the present Law, the Government may, as prescribed by Ordinance, exempt or abate war indemnity special tax as imposed on them, taking consultation with the War Indemnity Special Tax Council.

Article 13.　The tax rate of war indemnity special tax shall be 100%.

Article 14.　A taxpayer shall be liable to file a return of taxable amount and other necessary matters with the Government as prescribed by Ordinance, by the date as prescribed by Ordinance (the date shall hereinafter be called the filing date).

Article 15.　A taxpayer shall he liable to pay war indemnity special tax by the filing date as referred to in the preceding article.

Article 16.　The amount of the tax which a taxpayer is liable to pay shall be, in the case of Article 33 or 34, computed by deducting the amount of tax which a person who is liable to pay on behalf of him is to pay in accordance with said article from the amount of war indemnity special tax as computed by applying Articles 10-13 to the taxable amount.

Article 17.　A war indemnity claim which a taxpayer holds on the enforcement of the present Law shall become extinct, to the extent of the amount of war indemnity special tax, simultaneously with the filing of report as prescribed under Article 14 (or, at the expiration of the filing date prescribed in the same article in case no return is filed by the filing date).

Article 18.　If, in the case of Article 15 a taxpayer has, on the enforcement of the present Law, a Government special debt certificate or a blocked account, he shall be liable to pay war indemnity special tax firstly by transferring the Government special debt certificate to the Government, or in the form of cashes as obtained by having the blocked account realized, released or refunded before maturity.

Article 19.　In the case where a taxpayer who holds a Government special debt certificate has failed to file the return of Paragraph 1 of Article 14 by the filing date or in other cases as may be prescribed by Ordinance, the Government shall collect the tax in the form of the Government special debt certificate, on the day next to the filing date.

Article 20.　The application of the provisions of the preceding two articles shall not be hindered even in case the Government special debt certificate or the blocked account has been pledged as security (including the pledge as prescribed under Article 3 of the National Tax Collection Law), or the compulsory execution procedure, compulsory collection procedure of the National Tax Collection Law or other procedures of similar nature is in process regarding the Government special debt certificate or the blocked account.

Article 21.　In case a person who filed the return in accordance with Article 14 failed to pay war indemnity special tax by the filing date prescribed in the same article, the Government shall enforce the payment in accordance with the provisions prescribed in Article 9 of the National Tax Collection Law.

Article 22.　In case the banking institutions as referred to in Article 15 or 19 have gained credits owing to the accommodation of fund to non-life insurance companies or the Non-Life Insurance Central Association necessary for the payment claims as listed on No.14 of the attached table I or No.1 or 2 of the attached table II, the credits shall become extinct on the day next to the filing date as prescribed by Ordinance to the extent equivalent to the amount of war indemnity special tax which the banking institution is to send in accordance with Paragraph 2 of Article 15 or Paragraph 2 of Article 19;in this case, the banking institutions shall be exempt from sending the tax to the Government which is to be done pursuant to Paragraph 2 of Article 15 or Paragraph 2 of Article 19, to the extent equivalent to the amount of the credits extinguished.

Article 23.　A taxpayer in the case where he is to pay the tax or a part thereof in cash may request to the Government the payment in kind, or delayed payment upon presenting proper mortgages, when it is difficult to complete the payment.

Article 24.　In case there are two or more inheritors in the case of Article 5, each inheritor shall be liable to pay war indemnity special tax in proportion to the amount of net shares of estate accrued to each (in case liabilities are also inherited, the amount thereof shall be deducted fiom the inherited net shares of estate).

Article 25.　A taxpayer, when necessary for the payment of war indemnity special tax, may request the payment, before maturity, of deposits, savings or other credits as may be prescribed by Ordinance or a part thereof, or may cancel or change the contracts relating thereto, as prescribed by Ordinance.

Article 26.　In respect to the application of Paragraph 2 of Article 14, Paragraph 2 of Article 15, Paragraph 2 of Article 19, Paragraph 2 of Article 35, Paragraph 2 of Article 36, Paragraph 2 of Article 38 and Article 45 the Industrial Equipment Corporation shall be deemed a banking institution.

Article 27.　In case the return is filed in accordance with Article 14 the Government shall examine the same and, in case of difference from the taxable amount investigated by the Government, correct the returned taxable amount.

Article 28.　The Government, having corrected or determined the taxable amount in accordance with the preceding article shall notify the same to the taxpayer.

Article 29.　When the Government has corrected or determined the taxable amount in accordance with Article 27, the Government shall request the taxpayer to pay the determined or additional tax within the time limit of a month after the notification of the preceding article has been issued.

Article 30.　In case a taxpayer has any objection in respect to the corrected or determined taxable amount as notified by the Government in accordance with Article 27, he may request reinvestigation to the Government stating the reason for the dissatisfaction within a month from the date at which the notification is received.

Article 31.　In case the request is made by virtue of Paragraph 1 of the preceding article, the Government shall settle the objection and inform the settlement to the taxpayer.

Article 32.　A person who has an objection to the settlement of the preceding article, may make petition to the Government or appeal to the Administrative Litigation Court.

Article 33.　A person who is other than taxpayer and who, on the effective date of the present Law, holds a Government special debt certificate or blocked account shall be liable to pay war indemnity special tax up to the amount of his Government special debt certificate or blocked account, on behalf of the taxpayer.

Article 34.　If a taxpayer, in the case where the provisions of Article 4 of the Enterprises Reorganization Financial Measures Law or Article 10-(11) of the Temporary Fund Accomodation Adjustment Law has been applied, has had his war indemnity claim paid not in accordance with the formula of renovation as prescribed under Article 5 of the Enterprises Reorganization Financial Measures Law (or similar formulae as prescribed by Ordinance), in order to pay back his liabilities to a banking institution, the banking institution (or its successor) shall be liable to pay war indemnity special tax on behalf of the taxpayer up to the extent of the amount which has been paid back.

Article 35.　A subrogator shall be liable, as prescribed by Ordinance, to file a return with the Government by the filing date, stating therein the amount of such Government special debt certificate or blocked account as is referred to in Paragraph 1 of Article 33, the amount of such collected loan as referred to in Paragraphs 1 and 2 of the preceding article and other necessary matters.

Article 36.　A subrogator shall, as prescribed by Ordinance, be liable to pay war indemnity special tax by the filing date of the preceding article.

Article 37.　In the case where a taxpayer failed to file the return prescribed in Article 14, but the subrogator filed the return prescribed in Article 35, the application of the provisions of Article 10 in respect to the computation of war indemnity special tax which the subrogator is to pay on behalf of the taxpayer shall not be hindered.

Article 38.　In the case where a subrogator who, on the effective date of the present Law, holds a Government special debt certificate has failed to file the return by the filing date in accordance with Paragraph 1 of Article 35 or in cases as prescribed by Ordinance, the Government shall collect war indemnity special tax on the day next to the filing date in the form of the Government special debt certificate.

Article 39.　If in the case of Article 36 or the preceding article, the subrogator has gained credits owing to the accomodation of fund as given to non-life insurance companies or the Non-life Insurance Central Association which was necessary for the payment of claims listed in No.14 of the attached table I or No.1 or 2 of the attached table II, the credit shall become extinct, as prescribed by Ordinance, on the day next to the filing date to the extent equivalent to the amount of war indemnity special tax which the subrogator is to pay pursuant to Paragraph 2 of Article 36 or Paragraph 2 of the preceding article;in this case, the subrogator shall be exempt to pay the tax which is to be paid pursuant to said articles, to the extent equivalent to the amount of the credits extinguished.

Article 40.　The provisions of Articles 18 and 21 shall apply mutatis mutandis in respect to war indemnity special tax which a subrogator is to pay.

Article 41.　In case a subrogator who pays war indemnity special tax in accordance with Article 33 had obtained the Government special debt certificate or blocked account for countervalue, the subrogator, as prescribed by Ordinance, may request to the transferrer (or its successor) the recovery for the countervalue at which the Government special debt certificate, which was appropriated as the payment of the tax or the blocked account which was realized, released or refunded before maturity for the purpose of tax payment had been obtained.

Article 42.　A subrogator who paid war indemnity special tax in accordance with Article 34 may, as prescribed by Ordinance, request recovery to taxpayers and other persons (on successors thereof) who refunded liabilities pursuant to the same article, within the extent of the tax paid.

Article 43.　A taxpayer shall be liable, in the case of Article 33 or 34, to inform the subrogator of his taxable amount and other necessary matters, as prescribed by Ordinance.

Article 44.　In case a corporation has dissolved and distributed its assets without completing war indemnity special tax payment, the liquidators shall jointly be liable to pay the tax.

Article 45.　In case a banking institution has found it difficult because of its financial condition to cash war indemnity special tax it collected and send the same to the Government pursuant to Paragraph 2 of Article 15, Paragraph 2 of Article 19, Paragraph 2 of Article 36, or Paragraph 2 of Article 38, the banking institution may, as prescribed by Ordinance, with the permission of the Government, send a Government special debt certificate it holds to the Government instead of sending cashes and appropriate the same as the payment of war indemnity special tax.

Article 46.　Such juridical persons as designated by Ordinance shall, as prescribed by Ordinance, be liable to file a return regarding war indemnity claims to the Government.

Article 47.　Taxation officials, when necessary for the purpose of investigation or collection of war indemnity special tax, may ask question to persons liable or deemed liable to pay the tax and to persons liable or deemed liable to pay the tax in subrogation, or inspect their books, papers or other things relating to war indemnity claims.

Article 48.　Taxation officials may, when necessary for the purpose of investigation or collection of war indemnity special tax, ask questions to the persons as enumerated below or inspect their books, papers and other things relating to war indemnity claims:

Article 49.　Taxation officials, when necessary for the purpose of investigation of war indemnity special tax, may ask questions to those who were Governmental or other officials or members of specified instrumentalities and who were engaged in war indemnity claims business.

Article 50.　The place of payment of war indemnity special tax shall be for an individual, his domicile, or in case there is no domicile within the enforcement area of the present Law, his residence, and for a juridical person, the place of its head office or principal business place; provided that, however, an individual may with the permission of the Government appoint his residence to be the place of payment.

Article 51.　A taxpayer of subrogator either individual or corporate, which does not have domicile or residence, or office or business place within the enforcement area of the Law, shall be liable to appoint and report to the Government a taxpayment agent who, living at the place of payment, taken charge of the filing of return as referred to in Article 14 or 35 and every other necessary matters of war indemnity special tax;the same shall hold good in respect to the case where a taxpayer or subrogator either individual or corporate is going to discontinue to have domicile or residence, or office or business place within the enforcement area of the present Law.

Article 52.　No surtax to war indemnity special tax shall be imposed by prefectures, cities, towns, villages and other public bodies.

Article 53.　In case a taxpayer has paid war indemnity special tax as assessed on the war indemnity claims which had been transferred to him (including rights arising out of insurance contracts which had been transferred to him without accompanying the transference of objects of the insurance) or in case a taxpayer has complied with the request of Paragraphs 1 to 3 of Article 41 or Paragraphs 1 and 2 of Article 42 and paid the recovery claim, he may, as prescribed by Ordinance, request the recovery for the countervalue, if any, of the claims to the transferrer.

Article 54.　In case the business profits arising out of war indemnity claims of an individual have been counted in income of the Income Tax Law, net profits of the business tax law and/or profits of the old Extraordinary Excess Profits Tax Law, the amount equivalent to the excess of income tax, business tax, surtax thereof and/or extraordinary excess profits tax thus computed over the same computed by eliminating above said business profits shall, as prescribed by Ordinance, be abated from the income tax, business tax, surtax thereof and/or extraordinary excess profits tax.

Article 55.　In case a corporation has counted normal income, net profit, profit or surplus arising out of war indemnity claims, on the settlement of its account, the amount equivalent to the excess of corporation tax, business tax, surtax thereof, extraordinary excess profits tax or special corporation tax thus computed over the same as computed by eliminating income, net profit, profit or surplus arising out of the war indemnity claims shall be abated or exempted, as prescribed by Ordinance.

Article 56.　On computing normal income of the Corporation Tax Law, net profits of the Business Tax Law or surplus of the special corporation tax law, the amount of war indemnity special tax which a corporation paid or is to pay shall not be counted as loss.

Article 57.　In case the inheritance tax is assessed, before the enforcement of the present Law, on inherited property in which war indemnity claims, Government special debt certificates or blocked accounts were included (including the property as donated by the predecessor within a year before the inheritance;the same shall apply hereinafter) the excess of the tax thus assessed over the tax assessed on the inherited property after eliminating thereof the whole or a part of the amount of the war indemnity tax shall, as prescribed by Ordinance, be deducted or exempted.

Article 58.　In case war indemnity special tax is assessed on a war indemnity claim arising out of property inherited by an inheritance occurred before the enforcement of the present Law the amount obtainable by applying the percentage of such amount of the war indemnity special tax as is prescribed by Ordinance to the taxable amount of inherited property, to the amount of inheritance tax shall, as prescribed by Ordinance, be exempted or deducted from the amount of inheritance tax designated to be paid after August 15, 1945.

Article 59.　In respect to the payment of indemnity of loss to non-life insurance companies which is to be paid in accordance with Article 16 of the old War Risk Insurance Law (meaning the same article as it read before the revision by virtue of Article 56 of the Non-Life Insurance Central Association Law). The amount equivalent to the amount of credits extinguished by virtue of Article 22 (including the same article as applied by virtue of Article 40) and Article 39 shall be deducted from said loss of insurance companies which is to be indemnified.

Article 60.　In the case where lands or buildings (including things fixed on the lands or buildings;the same shall apply in this article) or mining rights or placer right have been transferred to the nation, local public bodies or specified instrumentalities or land or buildings have been appropriated by the nation or local public bodies, if war indemnity special tax is assessed on claims for the restitution thereof, the nation, local public bodies or specified instrumentalities shall, at the request of the original holders or successors thereof, as long as they still hold the lands, buildings, mining rights or placer rights on the enforcement of the present Law, be liable, to return the lands, buildings, mining rights or placer rights to the original holders (or successors), in their present conditions.

Article 61.　In the case where mining rights or placer rights have extinguished after the transference to the nation, local public bodies or specified instrumentalities, or in other cases as may be prescribed by Ordinance, if war indemnity special tax is assessed on claims for the countervalue thereof or on other claim as may be prescribed by Ordinance, the original holders of these rights or their successors shall, notwithstanding the provisions of Article 33 of the Mining Law, be granted priority in the applications for licenses for mining rights or placer rights aiming to the same mining pits or the same placer as old.

Article 62.　Even if war indemnity special tax has been imposed on a war indemnity claim arising out of a contract of bilateral obligations of which the obligation on the part of the war indemnity claimant had already been fulfilled before the enforcement of the present Law, this shall not, not withstanding any other statutes or contracts excepting the provisions of the preceding two paragraphs, entitle the taxpayer to a claim for the return of things or any other claims under justification of the payment of war indemnity special tax.

Article 63.　Government special debt certificates remain valid after the taxpayers and subrogators have paid war indemnity special tax (including the same as remains to persons who become exempt from paying the tax by virtue of the deductions of Article 10) and Government Special debt certificates held by persons who are not liable to pay war indemnity special tax shall become registered national bonds on the basis of yen for yen as prescribed by Ordinance.

Article 64.　The Government may, as prescribed by Ordinance, pay war indemnity claims against the Government which remain valid after the collection of war indemnity special tax (including claims held by persons who become exempt, from the tax by virtue of deductions of Article 10) through the medium of granting national bonds.

Article 65.　War indemnity claims for the supply of things other than money, which are valid on the enforcement of the present Law, shall become extinct on the enforcement date of the present Law.

Article 66.　The Government, notwithstanding other statutes or contracts, will not compensate the loss caused or causable on corporations or other juridical persons due to the accomodation of fund, application to or underwriting or purchase of securities, or underwriting or guarantee of debt which they made on or before August 15, 1945;provided that this shall not hold good in respect to cases as may be designated by Ordinance.

Article 67.　Guarantees given by the Government to corporations and other juridical persons (excluding guarantees as may be prescribed by Ordinance) shall become void on and after the enforcement date of the present Law.

Article 68.　A person who has evaded war indemnity special tax by an act of fraud or other unjust means shall be imprisoned not exceeding 1 rear or fined not exceeding 100,000 yen.

Article 69.　A person coming under any of the following items shall be imprisoned not exceeding one year or fined not exceeding 10,000 yen:

Article 70.　In case a representative of a juridical person, a deputy, employee or member of a juridical person or of an individual has committed violations as referred to in Article 68 or Paragraph 1 or Items 3 to 5 of the preceding Article, regarding the business or property of the individual or juridical person, the person who actually committed the violation shall be punished and besides as the juridical person or the individual shall be fined in accordance with the provisions of the Articles concerned.

Article 71.　In respect to a person who has committed the violation as prescribed under Article 68, the provisions of the proviso of Paragraph 3 of Article 38, Paragraph 2 of Article 39, Articles 40 and 41, Paragraph_2 of Article 48 and Articles 63 and 66 of the Penal Code shall not apply, provided that this shall not hold good in respect to the case where imprisonment is inflicted.

Article 72.　A person who has failed to file a return by the time-limit of Article 14 or 35 pursuant to the said Article shall forfeit not exceeding 5,000 yen.

Article 73.　In case a person who is ordered to Present himself fails to present himself without good reasons he shall forfeit not exceeding 1,000 yen for each failure.

Article 74.　Provisions similar to the present Law shall be provided for by the Imperial Household Ordinance regarding the disposal of war indemnity claims of Imperial Household properties.