I hereby give My Sanction to the Increased Income Tax Law for which the concurrence of the Imperial Diet has been obtained and cause the same to be promulgated.
Signed:HIROHITO, Seal of the Emperor
This twenty-eighth day of the twelfth month of the twenty-first year of Showa (December 28, 1946)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Finance ISHIBASHI Tanzan
The Increased Income Tax Law
Article 1. An individual who has gained any of the following incomes shall be liable to pay the increased income tax pursuant to the present Law:
1. Class A income
The excess of the sum total of the income from real estates as referred to in Art.10, par.1, No.1 of the Income Tax Law and/or classes A and B incomes from businesses as referred to in No.3 of said paragraph, which accrued in 1946, over the sum total of the basic amount of the same kind of incomes accrued in 1945 (or, the excess over 3,000 yen in case the sum total of the basic amount is under 3,000 yen).
2. Class B income
Income from forests as referred to in Art.10, par.1, No.5 of the Income Tax Law which accrued in 1946.
3. Class C income
Income from transfer as referred to in Art.10, par.1, No.8 of the Income Tax Law which accrued between March 3rd and December 31st, 1946.
Article 2. In case an individual who is not domiciled, nor resident for one year or more, within the enforcement area of the present Law on the enforcement date of the present Law, has gained income from property or businesses held outside the enforcement area of the present Law, the increased income tax shall not be imposed on said income.
Article 3. The taxable income of the increased income tax shall be as follows:
1. Class A income-The sum total of the income from real estates referred to in Art.10, par.1, No.1 of the Income Tax Law and classes A and B incomes from businesses referred to in No.3 of said paragraph, which accrued in 1946 less necessary expenses (hereinafter inafter including the interests on liabilities owned in order to gain said incomes), minus the sum total of the basic amount of the same kind of incomes accrued in 1945 (or, minus 3,000 yen in case the sum total of the basic amount is under 3,000 yen).
2. Class B income-Income from forests referred to in Art.10, par.1, No.5 of the Income Tax Law which accrued in 1946 less necessary expenses.
3. Class C income-Income from transfer referred to in Art.10, par.1, No.8 of the Income Tax Law which accrued between March 3rd and December 31st, 1946, less expenses for the acquisition, accomedation and improvement of the property and other expenses necessary for the transfer.
Article 4. 7,000 yen shall be deducted from Class A income.
10,000 yen shall be deducted respectively from Classes B and C incomes.
Classes A and B incomes of the head of a family and of member or members thereof shall be summed up respectively, for purposes of the application of the preceding two paragraphs. The same shall hold good in respect to Classes A and B incomes of family members living together but apart from the head of the family.
Article 5. The increased income tax shall be imposed at the following rates:
1. Class A income
Apply the rates successively to the increments of income as follows: yen %
2. Class B income
Apply the rates successively to the increments of income as follows: yen %
3. Class C income
Apply the rates successively to the increments of income as follows: yen %
Classes A and B incomes of the head of a family and member or members thereof shall be summed up respectively and above said rates shall apply to the total respectively;tax liabilities for each of the members shall be proportionate to the Classes A and B incomes of each member, in the total tax liabilities. The same as above shall hold good in respect to family members living together but apart from the head of the family.
Article 6. An individual liable to pay the increased income tax shall, as prescribed by Ordinance, file the return of kind and amount of his income and other necessary matters with the Government by January 31st, 1947.
Article 7. Class A, B or C income shall be determind by the Government after taking consultation with the Increased Income Tax Investigation Committee.
In case an omission has been found in the determination of the preceding paragraph, the Government may correct the determination after taking consultation with the Increased Income Tax Investigation Committee, not later than December 31st, 1950.
In case an individual has informed his tax liability or a taxpayer has informed the increment of his tax liabilities after the adjournment of the Increased Income Tax Investigation Committee the Government may, if judged proper, determine the taxable amount thereof, without taking consultation with the Increased Income Tax Investigation Committee, notwithstanding the preceding two paragraphs.
Matters necessary for the Increased Income Tax Investigation Committee shall be provided for by Imperial Ordinance.
Article 8. In case the Government has determind the taxable amount pursuant to the preceding Article or to Art.36, par.4 of the Income Tax Law as applied by virtue of Art.10, the Government shall inform the taxpayer of the determination.
Article 9. The increased income tax shall be paid by March 31st 1947;provided that exceptional provisions may be provided for by Ordinance for exceptional cases.
In case the taxable amount has been determind pursuant to Art.7, par.2 or 3, or to Art.36, par.4 of the Income Tax Law as applied by virtue of Art.10, the tax shall be collected at once notwithstanding the preceding paragraph.
In case an amount in the increased income tax is found difficult to be paid at one time, the taxpayer may, as prescribed by Ordinance, apply to defer the payment of said amount for not more than six months.
In case the deferred payment has been Permitted, the interest computed at the rate of 10% per annum on the deferred amount shall be paid as an additional tax, as prescribed by Ordinance.
Article 10. Arts.5, 6, 11, Nos.6 and 7, Art.12, pars.2, 3 and 6-8, Art.36, par.4, Art.39, par.2, Arts.66, 73, par.2, Arts.75, 76, 81, 82 and 84-87 of the Income Tax Law, and Art.3 of the Special Tax Measures Law and pars.3 and 4 of the Supplementary Provisions of the Capital Levy Law, shall apply mutatis mutandis in respect to the assessment of the increased income tax.
Article 11. A person who has evaded the increased income tax by frauds or other unjust means shall be imprisoned for not more than 1 year or fined or forfeited not more than three times of the tax evaded.
In above said cases, both of the imprisonment and fine may be imposed according to circumstances.
In the case of par.1, the Government shall determine the taxable amount and collect the tax at once.
Article 12. The following persons shall be imprisoned for not more than 1 year or fined not more than 10,000 yen:
1. A person who has refused, disturbed or evaded the inspection of books, documents or other things, conducted pursuant to Art.81 of the Income Tax Law as applied by virtue of Art.10.
2. A person who has presented books or documents of the preceding number stating falsehood therein.
3. A person who has failed to answer to the question conducted pursuant to Art.81, or 82, par.1 of the Income Tax Law as applied by virtue of Art.10.
4. A person who has answered falsehood to the question of the preceding number.
Article 13. A person who has violated the provisions of Art.66 of the Income Tax Law as applied by virtue of Art.10 shall be imprisoned for not more than 1 year or fined not more than 10,000 yen.
Article 14. In case a person who is or was engaged in the business relating to the investigation on the increase income tax has divulged or used for illegal purposes the knowledge acquired from the business, he shall be imprisoned for not more than 2 years or fined not more than 20,000 yen.
Article 15. In case the representative of a juridical person, a deputy, employee or other members of a juridical person or of an individual, has, relating to the business of the juridical person or the individual, done such misdemeanors as shown in Art.11 or Nos.2-4 of Art.12, the juridical person or the individual, as well as the person who has actually committed the misdemeanor, shall be fined according to Articles of the present Law.
Article 16. Art.38, par.3, proviso, Art.39, par.2, Arts.40, 41, 48, par.2, Arts.63 and 66 of the Penal Code shall not apply to persons who have committed the violation of Art.11, par.1;provided that this shall not hold good in respect to the case where the imprisonment is to be imposed.
Supplementary Provisions:
The present Law shall come into force as from the day of its promulgation.
The present Law shall be enforced in Honshu, Hokkaido, Shikoku, Kyushu and their adjacent islands (excluding such areas as may be provided for by Imperial Ordinance).
The return to be filled by January 31st, 1947 pursuant to Art.34, par.1 of the Income Tax Law and Art.16 of the Business Tax Law need not be filed.