I hereby give My Sanction to the War Indemnity Special Measures Law Enforcement Regulations, for which the concurrence of the Imperial Diet has been obtained, and order the same to be promulgated.
Signed: HIROHITO, Seal of the Emperor
This twenty-eighth day of the tenth month of the twenty-first year of Showa (October 28, 1946)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Justice KIMURA Tokutaro
Minister for Home Affairs OMURA Seiichi
Minister of Education TANAKA Kotaro
Minister of Agriculture and Forestry WADA Hiroo
Minister of Communications HITOTSUMATSU Sadayoshi
Minister of Commerce and Industry HOSHIJIMA Niro
Minister of Welfare KAWAI Yoshinari
Minister of Transportation HIRATSUKA Tsunejiro
Minister of Finance ISHIBASHI Tanzan
Imperial Ordinance No. 497
The War Indemnity Special Measures Law Enforcement Regulations
Chapter I General Provisions
Chapter II Taxable Amount, Deductions & Exemptions
Chapter III Declaration & Payment
Chapter IV Payment in Subrogation
Chapter V Miscellaneous Provisions
Enforcement Regulations of War Indemnity Special Measures Law
Chapter I General Provisions
Article 1. The specified instrumentalities referred to in Article 1, Paragraph 1 of the War Indemnity Special Measures Law (hereinafter shall simply be referred to as the Law) shall be those enumerated in the following:
1. The Industrial Equipment Corporation.
2. The Nippon Warehouse Control Company.
3. The Non-Life Insurance Central Ass'n.
4. Non-Life Insurance Companies having insurance contracts covering the insurance referred to in the Table I, No. 14, Table II, No. 1 or No. 2 attached to the Law.
5. The Wooden-vessels Insurance Ass'n.
6. The Fishing Boats Insurance Ass'n.
7. The National Reconstruction Bank.
8. The Imperial Mine Development Company.
9. The Nippon Coal Company.
10. The Shipping Control Ass'n.
11. Others as may be designated by Minister of Finance.
Article 2. The clearance formula similar to the formula of renovation as prescribed under Article 5 of the Enterprise Reorganization Financial Measures Law which is referred to in Article 1, Paragraph 1, Cl. 1 of the Law shall be the one which is to be settled by means of transferring the whole or part of the amount to be paid for war indemnity claims (hereinafter meaning the war indemnity claims as prescribed in Article 1 of the Law) to the financial institutions (hereinafter meaning the financial institutions as prescribed in Article 14, Paragraph 4 of the Law) as the deposits of the Claimants (provided that the deposit should be those which are subject to restriction as to their withdrawals same as blocked accounts).
Article 3. The credits referred to in Article 1, Paragraph 1, No. 1 shall be those as enumerated in the following, besides Government special debt certificates, debtors special debt certificates, blocked accounts, and special monetary trusteeships.
1. Wartime Finance Bank special debt certificates.
2. Deposits established according to the formula as prescribed in the preceding Article.
Article 4. The public bodies as referred to in Article 1, Paragraph 2 and Article 3 shall be those as enumerated in the following:
1. Associations of prefectures, associations of cities, towns and villages, associations of towns and villages and wards in cities, towns and villages.
2. Water-supply associations, federations of water-supply associations and the Hokkaido Doko Association.
Article 5. The deposits as referred to in Article 1, Paragraph 3 shall be those with the Nippon Industrial Bank of which their withdrawals are restricted similarly to blocked accounts.
Article 6. The claims arising out of normal administrative or business operation as referred to in Article 1, Paragraph 4 of the Law shall be those as enumerated in the following; provided the claims arising out of the operation of former Ministry of Army, Ministry of Navy and Aircraft Munitions General Bureau, of Ministry of Munitions (including operations of business trusted by these Ministries or Bureau pursuant to the Imperial Ordinance No. 1, 1945) shall be limited to the claims mentioned under No. 1 below and claims arising out of the money deposited therewith or out of similar causes:
1. Claims for salaries, wages, annuities, retiring allowances and other allowances.
2. Such claims arising out of the transfer, leasing, construction, remodelling, maintenance and repairing of lands, buildings and other facilities and arising out of the delivery of supplies, as are necessary for daily activities.
3. Claims arising out of loan of money, deposit of money and similar transactions.
4. Besides the claims enumerated in the foregoing three numbers, the claims arising out of the causes relative to daily activities.
Article 7. Claims as referred to in Article 4, Paragraph 4 of the Law shall be those enumerated in the following; provided excluding amounts corresponding to the amounts becoming extinct by virtue of Art. 17 of the Law:
1. Indemnity claims of the Industrial Equipments Corporation against the Government relative to the claims as listed in the attached Table 1, No. 11 and No. 12 of the Law.
2. Claims of the Nippon Warehouse Control Company against the Government relative to the claims as specified in the attached Table I, No. 13 of the Law, provided excepting the amount of the claims listed in said number which is equivalent to the amount as the extinguished in accordance with Article 17 of the Law.
3. Re-insurance claims of non-life insurance companies and the Wooden-vessels Insurance Association against the Non-life Insurance Central Association, relative to such claims listed in the attached Table I, No. 14 and Table II, No. 1 of the Law as arising out of war insurance contracts made pursuant to the War Risk Insurance Law or Imperial Ordinances adopting said law, or relative to such claims as listed in the attached Table II, No. 2 of the Law which are paid or to be paid pursuant to Imperial Ordinances issued on the basis of the Governmental Non-life Re-insurance Law, or relative to claims for marine insurances (including Wooden-vessels Insurance) as enumerated in Art. 18 par. 1 of the Non-life Insurance Central Association Law.
4. Indemnity claims of the Non-life Insurance Central Association against the Government corresponding to the re-insurance claims of the preceding number, or arising out of such marine insurance claims enumerated in Art. 18, par. 1 of the Non-life Insurance Central Association Law as listed in the attached Table II, No. 2 of the Law.
5. Indemnity claims of non-life insurance companies against the Government relative to war insurance claims listed in the attached Table I, No. 14 or the Table II, No. 1 of the Law (excluding those listed in No. 3 of the Table II).
6. Re-insurance claims of the Fishing-boats insurance association against the Government relative to insurance claims referred to in Art. 2, par. 2 of the Fishing-boat Insurance Law Enforcement Ordinance listed in the attached Table II, No. 2 of the Law.
7. The claims of the National Reconstruction Bank, the Industrial Equipment Corporation, the Imperial Mine Development Company and the Nippon Coal Company against the Government, relative to the claims as listed in the attached Table III of the Law; provided, of the claims of National Reconstruction Bank and Industrial Equipments Corporation, excluding the amount equivalent to the amount of loans cancelled in accordance with the provisions of Article 22, Par. 1, as applied by virtue of Article 22, Par. 2 or Art. 40, Par. 2 or in accordance with the provisions of Art. 39, Par. 1 as applied by virtue of Par. 2 of the same Article.
Besides the preceding numbers, the Ministry of Finance may designate claims to come under Art. 4, Par. 4 of the Law.
Article 8. In case a corporation which had been given the payment of war indemnity has ceased to exist due to partition before the enforcement of the Law, the payment of the war indemnity given to the said corporation which has become non-existent shall be deemed as given to the corporations which have been newly established by the partition in proportion of the benefits that the new corporations have received out of the assets succeeded, (or, in case of succeeding liabilities as a result of partition, such amount as left over after deducting the amount of liabilities from the amount of assets).
Article 9. The special debt certificates referred to in Article 7 of the Law shall be those other than the debt certificates of which ownerships have been transferred to the Nippon Industrial Bank for the purpose of acquiring deposits as referred to in the provisions of Article 5 of this Ordinance.
Article 10. The blocked accounts referred to in Article 7 of the Law shall be blocked accounts, special monetary trusteeships, debtor's special debt certificates which were established as the payment of war indemnity claim and credits as enumerated under Art. 3 and the deposit prescribed under Art. 5.
Chapter II Taxable Amount, Deductions & Exemptions
Article 11. The Values of the Claims listed in the attached Table I, No. 14 or the attached Table II, No. 1 or 2, or the values of the amounts paid thereto shall be judged by the amounts actually paid or to be paid due to the insurance contracts relative to the claims, provided, that, in respect to cases which are subject to Article 839 of the Commercial Code (including the same article as applied by virtue of Article 28 of the Fishing Boats Insurance Law and Article 30 of the Wooden Vessels Insurance Law) the values shall be judged after deducting values of abandonment from the insured amounts.
Article 12. In the case of Article 5 of the Law where there are two or more inheritors, the amounts of deduction to be made from the taxable amounts for each inheritor according to the provision of Article 10, Paragraphs 1 and 2 of the Law, relating to the claims listed in the attached Table I of the Law of which their predecessor had received the payment, shall be the amount which is to be computed by applying the ratio specified in Article 24, Paragraph 1.
Article 13. In the case of Article 6, Paragraph 3 of the Law, the amount to be deducted from the taxable amount of a corporation newly established due to partition according to the provision of Article 10, Paragraphs 1 to 4 of the Law relating to such claims of a corporation which has become non-existent due to partition as listed in the attached Tables I and II of the Law of which the payment was already made, shall be the amount computed by applying the ratio specified in Article 8 of the present Ordinance to the deductible amount as prescribed under Pars. 1-4 of Article 10 of the Law.
Article 14. In the case of the transfer of a war indemnity claim the amount deductible from the taxable amount of the claim shall be computed by applying the provisions of Pars. 1-9 of Article 10 of the Law, deeming the original claimant as the taxpayer.
If, in the case of the preceding paragraph the original claimant of said claim is also the original claimant of other war indemnity claims than said claim, the provisions of Art. 10, Par. 3 No. 1, Pars. 5 and 9 of the Law shall apply in respect to the sum total of war indemnity claims of which he is the original claimant.
In the case of Par. 1, the amount deductible from taxable amount of each claim by virtue of Art. 10 of the Law shall be computed as follows:
1. In case a part of a war indemnity claim has been transferred (excluding cases referred to in No. 2 below) amounts deductible from each part of the claim shall be computed by dividing the sum total of the deduction in proportion of the taxable amount of each part of the claim.
2. In the case where Article 10, Par. 3, No. 1, Par. 5 or 9 of the Law is to apply in respect to the deduction of Article 10 of the Law by virtue of the preceding paragraph, the amount deductible from the taxable amount of each claim (or, in case a part of the claim has been transferred, each part of the claim) to the deduction from which above said provisions are to apply, shall be computed by separating the sum total of deduction of Article 10 of the Law for each group of claims as classified into attached Tables I, II and III of the Law, and dividing each part of deduction thus obtained in proportion of taxable amount of each claim (or, in case a part of the claim has been transferred each part of the claim) belonging to that group.
In the case of No. 2 of the preceding paragraph, the separation of deduction for each group of claims listed in the attached Tables I and II of the Law shall be made in accordance with the following provisions:
1. In case the original holder of the claims is an individual, the amount deductible from claims listed in the attached Table II shall be the amount as prescribed in Item. 1, Par. 3, Art. 10 of the Law, and amount deductible from claims listed in the attached Table I shall be the deductions by virtue of Paragraphs 1-5 of said Article minus the deduction of Item. 1 Par. 3 of said Article.
2. In case the original holder of the claims is a corporation, amount deductible from claims listed in the attached Table I and same listed in the attached Table II, shall be computed by dividing the sum total of the amount deductible by virtue of Paragraphs 1-5, Art. 10 of the Law in proportion of taxable amounts of each group of claims.
The provisions of Art. 10, Par. 3, No. 1 and par. 5 and 9 of the Law shall not apply in respect to the case where the deductible amount of a taxpayer happens to exceed the amount as prescribed under Art. 10, Par. 3, No. 1 and Pars. 5 and 9 of the Law as the result of the deductions by virtue of the preceding four paragraphs.
Article 15. In the case where rights arising out of insurance contracts have been transferred without accompanying the transferrance of the insured property (including the case where war indemnity claims arising out of above said rights have been transferred after the transferrence of said rights), the amount deductible from the taxable amount shall be, notwithstanding the preceding article computed by applying the provisions of Art. 10, Pars. 1-9 of the Law, deeming the owner at the time of the accurance of the damage, of the property insured as the taxpayer.
The provisons of Pars. 2-5 of the preceding article shall apply in respect to the case of the preceding paragraph.
Article 16. In the case of Art. 7 of the Law, the amount deductible from the taxable amount shall, notwithstanding the preceding two articles, be 2,000 yen for each transferee.
The provisions of Art. 14, Par. 5 shall apply in respect to the case of the preceding paragraph.
Article 17. Each claim as referred to in Art. 10, Par. 1 and Par. 3, No. 2 of the Law shall be defined as follows:
1. As to claims listed in No. 14 of the attached Table 1, Nos. 1 and 2 of the Table II of the Law, a claim for each insurance contract arising out of one accident.
2. As to claims listed in No. 8 of the attached Table I and Nos. 3 and 4 of the Table II of the Law, a claim arising out of one accident for each vessel.
3. As to claims listed in No. 9 of the attached Table I of the Law, a claim arising out of one accident.
4. As to claims other than enumerated in above numbers, a claim arising out of one order, disposal or contract; provided, as to contracts of leasing, ship charter, or of the supply of gas or electricity or contracts of similar nature, a claim arising on each time of the payment of the countervalue thereof.
Article 18. War indemnity claims which are deemed to be overseas assets in accordance with Art. 10, Par. 12 of the Law shall be such war indemnity claims as are enumerated hereunder:
1. Claims for insurance money arising out of insurance contracts on the property located outside the enforcement area of the Law (excluding these paid or to be paid inside said area).
2. Claims relating to real and personal estates located outside the enforcement area of the Law or rights relating thereto, other than the preceding number.
3. Claims relating to businesses engaged in outside the enforcement area of the Law, other than the preceding two numbers.
4. Claims paid or to be paid outside the enforcement area of the Law, other than the preceding three numbers.
Article 19. Even if, in the case where a taxpayer is to be imposed war indemnity special tax on two or more claims, the taxpayer fails to file his returns on all of these claims by the filing date of Art. 14 of the Law, he may be favoured the deduction of Art. 10 of the Law in respect to claims of which returns were filed.
Article 20. Institutions or corporations referred to in Art. 12, Par. 1 of the Law shall be juridical persons established on the basis of Art. 34 of the Civil Code, religious corporations and other institutions as may be designated by the Minister of Finance.
Article 21. An amount of war indemnity special tax to be abated or exempted for the corporations and institutions of the preceding Article by virtue of Art. 12 of the Law, shall not exceed 100,000 yen, provided, that this shall not hold good in respect to special cases.
Article 22. A person who likes to be favoured abatement or exemption of war indemnity special tax imposed on claims listed in the attached Table II, No. 1 of the Law, by virtue of Art. 12, Par. 1 of the Law, shall submit with the Minister of Finance through the taxation office which administers the place of payment of the tax, an application and other papers as may be prescribed by Ordinance stating therein matters to be designated by Ordinance simultaneously with, or prior to the filing of return of Art. 14 of the Law.
Article 23. In case the superintendent of the taxation office has received the application and other papers referred to in the preceding Article, it shall be deemed that the postponement of the payment of the tax has been permitted in accordance with Art. 12, Par. 2 of the Law.
In the above said cases, the postponement shall be noted in on the return to be filed in accordance with Art. 14 or 35 of the Law.
Article 24. If, in the case where the postponement of the tax payment has been permitted in accordance with Art. 12, Par. 2 of the Law, the application for the abatement or exemption of the tax is rejected, or there remains, after the abatement, some tax amount to be paid by the taxpayer or subrogator (hereinafter meaning a person who is obliged to pay the tax on behalf of a taxpayer) the superintendent of the Taxation Office will designate the date of payment and collect the tax.
Chapter III Declaration and Payment
Article 25. A taxpayer shall file a return with the superintendent of the taxation office which administers the place of payment of his tax by November 30, 1946 (hereinafter be referred to as the filing date) stating therein matters to be designated by Ordinance.
A taxpayer who comes under any number of Par. 2 of Art. 14 of the Law, shall file his return through institution concerned (in case there are two or more institutions concerned through each of them).
Article 26. A person who is unable to file his return by the filing date because of hindrances in communication or transportation or of other circumstances shall file his return within a month after such hindrances are lifted with the superintendent of the taxation office which administers the place of payment of his tax.
The provisions of Art. 14, Par. 2 of the Law shall not apply in respect to the preceding paragraph.
Article 27. A taxpayer whose taxable amount is less than the deduction of Art. 10 of the Law and each of whose claims comes under any of the following numbers need not file the return of the preceding two articles:
1. In the event that the payment was already given in cashes before the enforcement of the Law.
2. In the event that the payment had been made in accordance with the formula of renovation as prescribed under Art. 5 of the Enterprises Reorganization Financial Measures Law (including the formula of clearance referred to in Art. 2 of the present Ordinance) and, before the enforcement of the Law, all the amount of the resultant Government special debt certificate (hereinafter meaning the Government special debt certificate of Art. 7 of the Law, with the exception of Art. 40 of the present Ordinance) or of the resultant blocked account (hereinafter meaning the blocked account of Art. 7 of the Law) were refunded, realized or released or extinguished by confusion.
A taxpayer need not file his return of the preceding two articles on a claim which is overseas asset; provided, this shall not hold good in respect to the case where the Minister of Finance has made exceptional determination regarding the filing of the return because of special necessities.
Article 28. Banking institutions within the meaning of the Law and present Ordinance shall be the following juridical persons, besides banks and trust companies:
1. Mutual financing corporations (Mujin Kaisha)
3. The Agricultural Central Bank.
4. The Commercial and Industrial Association Central Bank.
6. The Wartime Finance Bank.
7. Prefectural agricultural cooperatives.
8. Urban district credits associations.
10. Cities', towns', and villages' agricultural Associations.
11. The National Reconstruction Bank.
Article 29. A taxpayer shall pay war indemnity special tax not later than the filing date of Art. 14 of the Law.
If, in the case of the preceding paragraph, the tax is to be paid in cash, the payment shall be made to the head office or a branch office or an agent of the Bank of Japan with the presentation of payment bill the form of which is to be prescribed by Ordinance.
If, in the case of Par. 1, the payment is to be made by transferring a Government special debt certificate to the Government, the application of payment shall be made by presenting the Government special debt certificate, or instead, issuance notification thereof to the head office or (a branch office or) an agent of the Bank of Japan together with the payment bill the form of which is to be prescribed by Ordinance.
In case the application of payment is made in accordance with the preceding paragraph the payment of war indemnity special tax in the form of the transference of the Government special debt certificate shall be deemed to have been completed.
If, in the case of the preceding two paragraphs, the Government special debt certificate as offered as the payment or a part thereof has later become known to be non-existent or to be owned by a person other than the taxpayer or to be no Government special debt certificate of Art. 7 of the Law, the war indemnity special tax shall retroactively be deemed as unpaid to that extent.
Article 30. In case a taxpayer has filed return in accordance with Art. 14, Par. 2 of the Law, the banking institution of said paragraph shall collect war indemnity special tax from the taxpayer simultaneously with the filing of the return.
The provisions of Pars. 2-5 of the preceding article shall apply in respect to the case where the taxpayer pays the tax to the banking institution in the case of the preceding paragraph.
Article 31. In case a banking institution has collected the tax in accordance with the preceding paragraph, it shall send the same to the head office or a branch office or an agent of the Bank of Japan by the last day of the month next to the month of which the filing date belongs, with the payment bill the form of which is to be prescribed by Ordinance.
If, in the case of the preceding article, a banking institution has collected the tax in the form of a Government special debt certificate in accordance with Article 29, Par. 3 as applied by virtue or Par. 2 of the preceding article, it shall inform to that effect to the head office or a branch office or an agent of the Bank of Japan, sending thereto simultaneously the Government special debt certificate or issuance notification thereof together with payment bill the form of which is to be prescribed by Ordinance, by the last day of the month next to the month to which the filing date belongs.
Article 32. In the case as referred to in Art. 19 Par. 1 or Par. 2, the superintendent of a taxation office which administers the district in which the head office of the Bank of Japan is located, or the banking institution to which the account of a blocked account belongs (as to special monetary trusteeship, the banking institution who is the trustee, and as to a debtor's special debt certificate, the banking institution who is the debtor (the same goes hereinafter) shall collect such war indemnity special tax as mentioned hereunder in accordance with Art. 19, Par. 1 or 2 of Law, in the event of cases mentioned hereunder (in respect of the case coming under Art. 19, Par. 1 of the Law, Nos. 1 and 2 below) as well as of the case where a taxpayer has failed to file his return of Art. 14, par. 1 of the Law by the filing date:
1. In the event that, although a taxpayer has filed his return of Art. 14, Par. 1 of the Law, he failed to pay his tax--the tax due.
2. In the event that an omission is found in the return--the tax due on the claims omitted from the return.
Article 33. In case a banking institution to which a blocked account belongs has collected war indemnity special tax in accordance with Art. 19, Par. 2 of the Law, it shall send the same to the head office, a branch office or an agent of the Bank of Japan together with the payment bill the form of which is to be prescribed by Ordinance by the last day of the month next to the month to which the filing date belongs.
Article 34. The provisions of Art. 12 or 14 of the Enterprises Reorganization Financial Measures Law (meaning the same law which was given validity by virtue of the supplementary provisions of the Law concerning the abolition of the Enterprises Reorganization Financial Measures Law, etc. of 1946) and of same articles as applied by virtue of Art. 10-11, Par. 3 of the Temporary Fund Adjustment Law which was given validity by virtue of the provisions of the Law concerning the abolition of the Enterprises Reorganization Financial Measures Law, etc. of 1946, shall not apply in respect to the transference of Government special debt certificates or refundment, realization or release of blocked accounts which is to be made in accordance with Art. 18 or Art. 19, Par. 2 of the Law.
Article 35. In case a taxpayer has applied to have blocked account refunded, realized or released before maturity in accordance with Art. 18 of the Law, the banking institution concerned shall accept the application notwithstanding any other statutes.
Article 36. If, in the case of the payment of war indemnity special tax in accordance with Art. 18 of the Law, the Government special debt certificate or blocked account in question are pledged as security or compulsory execution procedure or compulsory collection procedure of the National Tax Collection Law or procedures of similar nature is in process thereon, the taxpayer shall notify the same to the pledger or creditor (or in case the compulsory tax collection procedure or similar procedure is in process, to the taxation officials who have impounded the property).
The provisions of the preceding paragraph shall apply in respect to the collection of war indemnity special tax in accordance with Art. 19 of the Law; provided, in this case, "the taxpayer" of the preceding paragraph shall read as "the superintendent of the taxation office which administers the district in which the head office of the Bank of Japan is located, as to special debt certificates, and as to blocked accounts, the banking institution to which the accounts of blocked accounts belongs".
Article 37. The provisions of the preceding three articles shall apply in respect to the case where war indemnity special tax temporarily postponed its collection by virtue of Art. 12 Par. 2 of the Law is to be collected in the form of blocked account in accordance with the National Tax Collection Law.
Article 38. In case a banking institution which comes under Art. 22, Par. 1 of the Law has gained two or more credits against a non-life insurance companies or the Non-Life Insurance Central Association, the amount of all credit to become extinct in accordance with said paragraph shall be computed by dividing the sum total becoming extinct in proportion to the amount of each credit outstanding on the next day of the filing date.
The provisions of the preceding paragraph shall apply in respect to cases where a banking institution coming under Art. 22, Par. 2 of the Law has gained two or more credits against the National Reconstruction Bank or the Industrial Equipment Corporation.
Article 39. In the case of Art. 22, Par. 1 or 2 of the Law, the banking institution shall report matters which are to be prescribed by Ordinance to the superintendent of the taxation office which administers the district in which the head office or principal business place of the banking institution is located, and also inform the same to the non-life insurance company, Non-Life Insurance Central Association, National Reconstruction Bank or to Industrial Equipment Corporation, within two months after the filing date.
Article 40. The kind of property which may be used as the instrument of payment of war indemnity special tax by virtue of Art. 23, Par. 1 of the Law shall be as follows:
1. National bonds (including Government special debt certificates) and local public bonds.
2. Corporate debentures, debentures issued by unincorporated juridical persons which have been established by virtue of special statutes (hereinafter called special juridical persons), fully paid-up shares and shares of contributions to special juridical persons; provided excluding those which are not easily marketable.
Article 41. Appraisals of properties to be collected in accordance with Art. 23, Par. 1 of the Law shall be made pursuant to the provisions of CHAPTER III of the capital Levy Law and Ordinances to be issued therefrom.
Article 42. A person who likes to apply for the payment in kind shall submit with the superintendent of the taxation office concerned the application stating therein matters as may be prescribed by Ordinance, simultaneously with or prior to the filing of return of Art. 14 of the Law or prior to the time-limit of Art. 29, Par. 1 of the Law.
The provisions of Art. 23 shall apply in respect to the case where the application is submitted in accordance with the preceding paragraph; in this case, "Art. 12, Par. 2 of the Law" as mentioned in Par. 1 of said Article shall read as "Art. 23, Par. 4 of the Law."
Article 43. In case the superintendent of a taxation office has found the property offered as the payment to be difficult to handle or dispose, he may order to change it or he may not permit the payment in kind.
Article 44. In case a taxpayer has been ordered to change the property be offered as the paymet by virtue of the preceding article, and likes to offer another property he shall submit with the superintendent of the taxation office an application stating therein matters as may be prescribed by Ordinance, within 20 days after the notification of said order is received.
In case the taxpayer failed to submit the application by the time-limit of the preceding paragraph, the application for the payment in kind shall become void.
Article 45. The payment in kind shall be deemed as the payment of war indemnity special tax only when the transference of the property, registration of the transference of the ownership of the property or other conditions legally authorized as invulnerable conditions against third parties is completed.
Article 46. If, in the case where postponement of collection has been permitted pursuant to Art. 23 as applied by virtue of Art. 42, Par. 2, the application of payment in kind is rejected, or if, in the case where the application for the payment in kind has been determined one way or other or the application has become void by virtue of Art. 44, Par. 3, there remains tax yet to be paid, the superintendent of a taxation office shall appoint the payment date and collect the tax.
Article 47. A person who likes to apply for the payment in delay pursuant to Art. 23, Par. 1 of the Law, shall submit with the superintendent of the taxation office concerned an application stating therein matters as may be prescribed by Ordinance, simultaneously with or prior to the filing of return of Art. 14 of the Law or by the time-limit as prescribed under Art. 29, Par. 1 of the Law.
In case a taxpayer who had submitted the application pursuant to Art. 42 has had his application rejected or been ordered the change of the property offered as the payment by virtue of Art. 44, Par. 1, the application of the preceding paragraph in respect to the tax concerned may be submitted within 20 days after the notification of rejection or change is received notwithstanding the preceding paragraph.
The provisions of Art. 23 shall apply in respect to the case where the application is submitted by virtue of the preceding two paragraphs: in this case, "Art. 12, Par. 2 of the Law" as mentioned in Par. 1 of said Article shall read as "Art. 23, Par. 4 of the Law."
Article 48. Kind of property to be presented as mortgages in accordance with Art. 23, Par. 1 of the Law shall be as follows:
1. National bonds, local public bonds and corporate debentures (including debentures issued by special juridical persons) and other securities which the superintendent of a taxation office deems reliable.
4. Fire insured growing trees.
6. Factory foundations, mine-foundations, fishery-foundations, railroad-foundations, canal-foundations and automobile-and-transportation-business-foundations.
7. Guarantees made by guarantors who are deemed reliable by the superintendent of a taxation office.
Article 49. A person who is going to offer the property mentioned under No. 1 of the preceding paragraph shall deposit the same with the Deposit Office and deliver the doposit-receipt to the superintendent of a taxation office; provided, in respect to registered national bonds and corporate debentures registered in accordance with the Corporate Debentures Registration Law, registration-notification-note or registration-certificate shall be delivered and, as to national bonds registered in class B National Bond Register Book, deposit-receipt shall be delivered after putting the inscribed national bonds into deposit with the Deposit Office.
In case the property mentioned under Nos. 2-6 of the preceding article has been presented as mortgages, the superintendent of a taxation office shall put the mortgages into registry or registration with registry office or registration office.
Article 50. In case the superintendent of a taxation office deems the property mortgaged to have depreciated or the guarantor to have lost his property and therefore become unqualified to guarantee, he may order to have additional mortgages presented or to change the guarantor.
In case the property as mentioned under Art. 48, No. 1 which was mortgaged is refunded or payed back, or houses, growing trees or vessels mortgaged is destucted or lost or insurance contracts thereon become extinct, the taxpayer shall present substituting mortgages.
Article 51. In case a taxpayer, failing to accord with the preceding article, has neglected to present new mortgages or to change the guarantor, the superintendent of a taxation office may cancel the permission of delayed payment and collect the tax at one time; the same shall hold good in respect to the case of delinquency in instalment payment in the case of delayed payment.
Article 52. In case a taxpayer who was permitted delayed payment has fallen in arrears, the mortgages, if any, shall be put into public auction and proceeds therefrom shall be appropriated to the payment of tax in arrears (including expedition charges, delayed interests and expenses for the public auction: the same goes in this article), or guarantor, if any, shall be informed the taxpayer's delinquency and requested the payment on behalf of the taxpayer.
The public auction of the preceding paragraph shall be executed in accordance with the process of the public auction of the national tax compulsory collection.
In case the value of the mortgage has been found, before the completion of the public auction, to be insufficient to cover the tax in arrears, the compulsory collection procedure may be executed on other property of the taxpayer.
In case the proceeds from the public auction has been found insufficient to cover the tax in arrears and expenses for the public auction, compulsory collection procedure may be executed on the guarantor.
The guarantor of the preceding paragraph shall be deemed a tax payer in arrears for purposes of the application of Art. 32, Par. 1 of the National Tax Collection Law.
Article 53. In case the tax in delay has been paid out, the superintendent of a taxation office shall release the property from mortgage.
Article 54. Additional tax to be paid in accordance with Art. 23, Par. 5 of the Law shall be computed on the basis of 10% per annum interests on the tax amount in abeyance (excluding the amount in arrears) in accordance with the number of days elapsed. The number of days shall cover, as to the first instalment, from the next day of the payment date of Art. 15, Par. 1 of the Law or Art. 29, Par. 1 of the Law to the appointed date for the payment of the instalment, and as to the later instalments, from the next day of the payment date of the preceding instalment to the appointed date for the payment of present instalment.
Article 55. If, in the case where postponement of collection has been permitted pursuant to Art. 23 as applied by virtue of Art. 47, Par. 3, the application for delayed payment is rejected, or if, in the case where the application for the delayed payment has been determined one way or other, there remains tax yet to be paid, the superintendent of a taxation office shall appoint the payment date and collect the tax.
Article 56. Deposits, savings and other credits as mentioned under Art. 25, Par. 1 of the Law, shall be as follows; provided, excluding therefrom those which are put in mortgages:
1. Term deposits, term savings, fixed savings or instalment savings which are deposited with banks, local agricultural cooperatives, credit associations, urban district credit associations and other persons as may be designated by the Minister of Finance.
2. Rights relating to joint-operation-trusteeship (hereinafter meaning the same as defined in Art. 7 of the Income Tax Law) trusted with trust companies (including banks engaged in trust business); provided, this shall be limited to the trusteeship of which the taxpayer is the trustor as well as beneficiary.
3. Term deposits with the Pension Bank.
Article 57. In case a taxpayer likes to have term deposits, term savings or fixed savings of the preceding article or a part thereof paid back before maturity, or to have instalment savings or joint-operation-trusteeship dissolved or to change the contracts thereof to have the paid in premiums of trusted property or a part thereof paid back, he shall present the payment bill as prescribed under Art. 29, Par. 2 (including the same provisions as applied by virtue of Art. 30, Par. 2) or documents similar to it to the banking institution concerned together with the certificate issued by the superintendent of the taxation office concerned which certifies matters as may be prescribed by Ordinance.
In the case of the preceding paragraph, the banking institution shall accept the application of the taxpayer if the certified documents of the preceding paragraph have been presented.
The banking institution on paying back the money requested by vitue of the preceding paragraph shall, as prescribed by Ordinance, also pay interests or dividends thereof.
Article 58. In the case of the preceding article, the banking institution shall not receive any charges or indemnifications or rewards of similar nature from the taxpayer, under what name it may be called.
Chapter IV Payment in Subrogation
Article 59. In case there are two or more subrogators as referred to in Art. 33, Par. 2 of the Law, the amount of tax each subrogator is to pay shall be computed by deducting from the amount of war indemnity special tax as calculated pursuant to Arts. 10-13 of the Law, the amount of Government special debt certificates or blocked accounts held by the taxpayer on the enforcement date of the Law, and dividing the balance thus gained in proportion to the amount of Government special debt certificates and/or blocked accounts held by each subrogator on the enforcement date of the Law.
The provisions of the preceding paragraph shall apply in respect to the cases of Art. 34, Pars. 1 and 2 of the Law.
Article 60. The formula similar to the formula of renovation as prescribed under Art. 5 of the Enterprises Reorganization Financial Measures Law, as referred to in Art. 34, Par. 1 of the Law, shall be the formula as prescribed under Art. 2 of the present Ordinance.
Article 61. A subrogator, in the case of Art. 41, Par. 1 of the Law, may request from the transfer or the recovery for such part of the countervalue which was required for obtaining the Government special debt certificate or blocked account as corresponds to the amount which was required for obtaining the Government special debt certificate or bolcked account actually appropriated for the payment of war indemnity special tax.
Article 62. In case the transferor provided for in Art. 41, Par. 2 of the Law has paid the recovery claim in compliance with the request, he may, only to the extent of the payment of the said recovery claim, request in turn from the preceding holders the recovery for the amount corresponding to the countervalue which was required for obtaining the Government special debt certificate or blocked account appropriated for tax payment.
Article 63. A subrogator may request from the taxpayer or a person who has paid back liabilities provided for in Article 34 of the Law the recovery for the amount of war indemnity special tax which the subrogator paid.
The provisions of the preceding article shall apply in respect to the preceding paragraph.
Article 64. The provisions of Art. 25, Par. 1 and Arts. 26 and 27 shall apply in respect to the case where a subrogator is to file return in accordance with Art. 35 of the Law, in this case, "Art. 14, Par. 2 of the Law" referred to in Art. 26, Par. 2 shall read as "Art. 35, Par. 2 of the Law".
The provisions of Arts. 29-37 shall apply in respect to cases where a subrogator is to pay war indemnity special tax or the tax is to be collected from a subrogator; in this case, "Art. 14 of the Law" referred to in Art. 29, Par. 1 shall read as "Art. 35 of the Law", "war indemnity special tax" as "war indemnity special tax (excluding the amount the payment of which is to be exempted by virtue of Art. 39, Par. 1 or 2 of the Law)", "Art. 14, Par. 2 of the Law" referred to in Art. 30, Par. 1 as "Art. 35, Par. 2 of the Law", "Art. 19, Par. 1 or 2 of the Law" as referred to in Art. 32 as "Art. 38, Par. 1 or 2 of the Law", "Art. 14, Par. 1 of the Law" as "Art. 35, Par. 1 of the Law", "Art. 19, Par. 1 of the Law" as "Art. 38, Par. 1 of the Law", "Art. 19, Par. 2 of the Law" referred to in Art. 33 as "Art. 38, Par. 2 of the Law", "Art. 18 or Art. 19, Par. 2 of the Law" referred to in Art. 34 as "Art. 38, Par. 2 of the Law or Art. 18 of the Law as applied by virtue of Art. 40, Par. 1 of the Law", "Art. 18 of the Law" referred to in Art. 35 and Art. 36, Par. 1 as "Art. 18 of the Law as applied by virtue of Art. 40, Par. 1 of the Law", and "Art. 19 of the Law" referred to in Art. 36, Par. 2 shall read as "Art. 38 of the Law".
The provisions of Arts. 38 and 39 of the Law shall apply in respect to cases where a banking institution who is a subrogator or a banking institution with whom blocked accounts of a subrogator were deposited, has obtained credits against non-life insurance companies, the NonLife Insurance Central Association, National Reconstruction Bank or Industrial Equipment Corporation due to the accommodation of loans necessary for the payment of the claims listed in No. 14 of the attached Table I of the Law, No. 1 or 2 of the attached Table II of the Law or in the attached Table III of the Law; in this case, "Art. 22, Par. 1 of the Law" referred to in Art. 38 shall read as "Art. 39, Par. 1 of the Law or Art. 22, Par. 1 of the Law as applied by virtue of Art. 40, Par. 2 of the Law", "Art. 22, Par. 2 of the Law" referred to in Par. 2 of said article as "Art. 39, Par. 2 of the Law or Art. 22, Par. 2 of the Law as applied by virtue of Art. 40, Par. 2 of the Law", and "Art. 22, Par. 1 or 2 of the Law" referred to in Art. 39 shall read as "Art. 39, par. 1 or 2 of the Law or Art. 22, par. 1 or 2 of the Law as applied by virtue of Art. 40, par. 2 of the Law."
Chapter V Miscellaneous Provisions
Article 65. The Bank of Japan and the specified instrumentalities mentioned in Article 1 shall, by November 30, 1946, submit documents with the superintendent of the competent taxation office which are to be prescribed by Ordinance.
Article 66. When necessary in regard to the investigation of war indemnity special tax, the Director of Local Financial Bureau may order the persons provided for in paragraph 2, Article 49 of the Law to present themselves to the appointed places on appointed times.
Article 67. In the case of Article 53 of the Law, the taxpayer may request from the transferor the recovery for the amount equivalent to the countervalue of claims (excluding therefrom the amount equal to the deduction of Art. 10 of the Law) to the extent of the amount of the war indemnity special tax be paid, or the amount of recovery claims he paid in compliance with the request as prescribed in paragraphs 1 to 3, Article 41 of the Law, and paragraphs 1 and 2, Article 42 of the Law.
The provisions of Art. 62 shall apply in respect to the preceding paragraph.
Article 68. The amount of such individual business profits to be deducted from income, net profits or profits in accordance with the provision of Article 54 of the Law as arising from war indemnity claims shall not exceed the amount of war indemnity special tax imposed in regard to the war indemnity claims concerned.
Article 69. A person who wants to undergo the application of the provision of Article 54 of the Law shall submit with the superintendent of the taxation office within thirty days from the day following the date of payment or collection of war indemnity special tax (or in the case of the application for delayed payment, the following day of the date of application) an application stating therein matters to be prescribed by Ordinance and other necessary papers.
When special circumstances are deemed to exist, the superintendent of the taxation office may make deduction as prescribed in Article 54 of the war Indemnity Special Measures Law, even in case the application mentiond in paragraph 1 fails to be submitted, as prescribed by ordinance.
Article 70. In case profits arising out of war indemnity claims to be deducted pursuant to the provision of Article 55 of the Law from the normal income of a corporation for every business year under the Corporation Tax, Law, net profits for every business year under the Business Tax Law, profits under the former Extraordinary Excess Porfits Tax Law, or surplus for every business year under the Special Corporation Tax Law, exceeds the amount equivalent to the war indemnity special tax paid, the amount in excess shall not be deducted.
Article 71. A corporation which wants to undergo the application of the provisions of Article 55 of the Law, shall submit an application with the superintendent of the competent taxation office within 50 days after the next day of the date of payment or collection of war indemnity special tax, or next day of the date of application for delayed payment (in the case of business year for which account was settled after the date of payment, collection or application for delayed payment of war indemnity special tax within 50 days after the account was settled), attaching thereto papers stating therein matters to be prescribed by Ordinance.
The provisions of Art. 69, Par. 2 shall apply in respect to the case of the preceding paragraph.
Article 72. The amount of war indemnity special tax to be deducted from the taxable amount of inheritance tax as prescribed in Paragraph 1, Article 57 of the Law shall be in accordance with the provision of the following numbers:
1. In case the inheritor (including legatee and donee; the same shall apply hereinafter) is a taxpayer of war indemnity special tax,—the amount of war indemnity special tax concerned (excluding the amount for which the inheritor is entitled to request recovery).
2. When, in the case of the preceding number, a subrogator said the war indemnity special tax,—that part of the amount of war indemnity special tax for which the subrogator is entitled to request recovery from the inheritor (excluding the amount for which the inheritor is entitled to request recovery).
3. In case the inheritor is a subrogator of war indemnity special tax,—the amount of war indemnity special tax concerned minus the amount for which the inheritor is entitled to request recovery from the transferor.
4. In case the person who received transfer of war indemnity claim which had been inherited property is a taxpayer of war indemnity special tax,—that part of the war indemnity special tax for which the taxpayer is entitled to request recovery from the inheritor (excluding the amount for which the inheritor is entitled to request recovery).
Article 73. The amount of war indemnity special tax which is to be made the basis for computing the precentage as prescribed in Article 58 of the Law shall be as shown in the following numbers:
1. In case the inheritor is a taxpayer of war indemnity special tax,—the amount of war indemnity special tax concerned.
2. When, in the case of the preceding number, a subrogator paid the war indemnity special tax,—that part of the amount of war indemnity special tax concerned for which the subrogator is entitled to request recovery from the inheritor.
3. In case a person who received the transfer of war indemnity claim arising out of inherited property is a taxpayer of war indemnity special tax,—that part of the amount of war indemnity special tax concerned for which the taxpayer is entitled to request recovery from the inheritor.
In the case of the preceding paragraph, the amount of war indemnity special tax which is to be made the basis for computing the precentage as prescribed in Article 58 of the Law shall not exceed the taxable amount of inherited property as mentioned in the same article minus the amount deductible by virtue of Article 10 of the Law in regard to war indemnity claims concerned.
Article 74. The provisions of Articles 57 and 58 of the Law shall not apply in regard to the amount of war indemnity special tax specified in the following numbers:
1. The additional amount of war indemnity special tax computed in accordance with Paragraph 5, Article 23 of the Law.
2. The amount of war indemnity special tax assessed on countervalue claims as provided for in Paragraph 1, Article 60 of the Law, in case transfer of land, buildings, mining rights, or placer rights has been made to the original holders thereof in accordance with the same article.
Article 75. A person who wants to undergo the application of Article 57 or 58 of the Law shall submit with the superintendent of the competent taxation office within the period specified in Article 11 of the Inheritance Tax Law a written application stating therein matters to be prescribed by Ordinance; provided, however, that in case the above said period expires within 60 days after the enforcement of this Ordinance, the application shall be submitted within 60 days after the enforcement of this Ordinance.
The provisions of Paragraph 2, Article 69 shall apply in regard to the preceding paragraph.
Article 76. In case, when lands or buildings are to be transferred in accordance with Art. 60, Par. 1 of the Law, the said lands or buildings are, on the enforcement date of the Law, being used for official or public purposes, or are already determined by the nation or local public bodies to be so used or are used by specified instrumentalities which owned them, the nation, local public bodies or specified instrumentalities may continue the use during the period for which the property are used for said purposes.
In case, when lands or buildings are to be transferred in accordance with Art. 60, Par. 1, the lands or buildings are, on the enforcement date of the Law, served by the nation, local public bodies or specified instrumentalities to the use of other persons, the persons who are using the lands or buildings on the enforcement date of the Law, may continue the use of them until the expiration of the contracted period for the utilization.
The rent for utilization and other terms will be determined by negotiations between the party involved, in the case of the preceding two paragraphs.
If negotiations have failed to attain agreement or negotiations are found impossible, the court will decide the matters on request from the party involved.
Article 77. The computation of war indemnity special tax imposable on a claim for counter-value for transferred or appropriated lands, buildings, mining rights or placer rights referred to in Article 60, Par. 2 of the Law shall be made, in case war indemnity special tax has been imposed on said claim as well as on other war indemnity claims of said claimant and the provisions of Article 10, Par. 5 of the Law has been applied thereto, by deducting the amount of deduction referred to in Art. 10 of the Law as computed in accordance with Art. 14, Pars. 3 and 4, from the taxable amount of said claim.
Article 78. If, in the case of Par. 2, Art. 76 persons other than the nation, local public bodies or specified instrumentalities had payed expenses for improvement, the original holder shall indemnify the expenses to the persons.
Article 79. The case provided for under Art. 60, Par. 4 of the Law in which the Government is to give the part of the amount in war indemnity special tax collected shall be the case where the Government had borne a part of the prices by granting subsidies, etc., when the lands, buildings, mining rights or placer rights had been transferred to or appropriated by local public bodies or specified instrumentalities.
The amount to be given pursuant to the preceding paragraph shall be the amount of war indemnity special tax minus the amount the Government had borne.
Article 80. The cases provided for in Paragraph 1, Article 61 of the Law shall be the case where the original holder of mining rights, for purposes of enterprises liquidation, cancelled the registration of the mining rights in accordance with the contract made between him and the Nippon Coal Company, as well as cases where mining rights or placer rights became extinguished after these rights had been transferred to the nation, local public bodies or specified instrumentalities.
Claims as referred to in Art. 60, Par. 1 of the Law shall be war indemnity claims of the mining right holder of the preceding paragraph against the Nippon Coal Company arising out of the contract referred to in the preceding paragraph, as well as claims for the countervalue.
Article 81. A person who wants to undergo the application of Par. 1, Art. 61 of the Law shall apply to the Director of Local Bureau of Commerce and Industry in accordance with the provisions of the Mining Law.
On making the application of the preceding paragraph, documents to be prescribed by the Minister of Commerce and Industry shall be attached to the written application.
Article 82. The Government, notwithstanding other statutes or contracts, will not compensate the loss caused or causable on corporations or other juridical persons due to the accommodation of fund, application to or underwriting or purchase of securities or underwriting or guarantee of debt which they made on or before Aug. 15, 1945; provided, this shall not hold good in respect to the followings:
1. Compensation of loss due to the contract made, between the Government and the Bank of Japan, in accordance with Art. 4, Par. 1 of the Law regarding Compensation of Loss arising out of Special Accommodation of Loans by the Bank of Japan.
2. Compensation of losses due to contracts made, between the Government and the Hypothec Bank of Japan or Hokkaido Colonial Bank, in accordance with Art. 6 of the Law regarding Compensation of Loss arising out of Accommodation of Loans on real estates.
3. Compensation of loss due to the contract made, between the Government and the Agricultural Central Bank, in accordance with Art. 5, Par. 1 of the Law regarding Compensation of Loss arising out of Special Accommodation of Loans by the Agricultural Central Bank.
4. Supply of fund or Compensation of loss due to contracts made, between the Government and prefectures, the Central Agricultural Bank, Hypothec Bank of Japan or Hokkaido Colonial Bank, in accordance with Art. 6 or Art. 5, Par. 1 of the Law regarding Compensation of loss arising out of Special Accommodation of Fund necessary for Consolidation of Liabilities of Agrarian Districts.
5. Compensation of loss caused or causable on the National Reconstruction Bank out of businesses referred to Art. 17, Par. 1, Nos. 2 and 3 of the National Reconstruction Bank Law, which the Government is liable to cover due to the contract made, between the Government and said Bank, in accordance with Art. 37, Par. 1 of said Law.
6. That part of compensation of loss Government is liable to cover for the sake of the Hypothec Bank of Japan in accordance with Art. 7 of the former Ordinance regarding Fund Operations of Banking Institutions, which corresponds to the loss caused or causable on the Hypothec Bank of Japan because of the guarantee given by said Bank, for liabilities of the People's Bank arising out of the loans accommodated by the People's Bank for sustaining living expenses of needy peoples and constructing shacks.
7. Re-cover of loss due to the contract named "compensation of loss arising out of the accommodation of loans to reconstruct damaged minor traders and manufacturers, Ministry of Commerce and Industry Ordinary Budget" which was made between the Government and prefectures on the basis of "the contracts out of budget" promulgated 10, Feb. 1934.
9. Compensation of loss due to the contracts named "re-cover of losses arising out of the accommodation of fund to minor traders and manufacturers, Ministry of Commerce and Industry Ordinary Budget" (including the same revised by "contracts out of budget" each of which was promulgated 6, March, 1938, 1, March, 1939, 5, March, 1942 and 15, Feb. 1944), which were made between the Government and prefectures or cities on the basis of "the contracts out of budget" promulgated 30, March, 1937.
Article 81. Guarantees given by the Government to corporations and other juridical persons shall become void on the enforcement date of the Law, provided, this shall not hold good in respect to guarantees given on the followings:
1. National Reconstruction Bank debentures
2. People's Bank debentures
3. Housing Corporation debentures
4. Metropolitan Transportation Corporation debentures
5. Medical Corporation debentures
6. Farm Development Corporation debentures
7. Credits extended to Japan Education Association.
Article 83. The Government referred to in Arts. 21, 27-29 (including said articles as applied by virtue of Art. 40, Pars. 1 and 3 of the Law), 50 and 51 of the Law shall mean the superintendent of a taxation office which administers the district in which the place of payment of the tax is located, and the Government referred to in Arts. 30 and 31 of the Law (including said article as applied by virtue of Art. 40, Par. 3 of the Law) shall mean the Director of a Local Financial Bureau which administers the district in which the place of payment of the tax is located.
Supplementary Provision:
The present Ordinance shall come into force as from the date of promulgation of the Law.