I hereby give My sanction to the Law concerning the Revision of the Corporation 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 thirty-first day of the third month of the twenty-second year of Showa (March 31, 1947) Countersigned: Prime Minister YOSHIDA Shigeru Minister of Finance ISHIBASHI Tanzan Law No.28 THE CORPORATION TAX LAW Chapter I. General Provisions Chapter II. Taxable Standards Chapter III. Tax Rates Chapter IV. Declaration Chapter V. Payment Chapter VI. Correction and Determination of Taxable Standards Chapter VII. Special Rules for A Family-corporation Chapter VIII. Reinvestigation, Petition and Law Suit Chapter IX. Miscellaneous Provisions Chapter X. Penalties THE CORPORATION TAX LAW CHAPTER I. GENERAL PROVISIONS

Article 1. Corporations which come under either of the following numbers shall be liable to pay corporation tax pursuant to the present Law: 1. A corporation having its head office or principal place of business within the enforcement area of the present Law. 2. A corporation not having its head office or principal place of business within the enforcement area of the present Law but having its asset or business within the enforcement area of the present Law.

Article 2. A corporation having its head office or principal place of business within the enforcement area of the present Law shall be liable to pay corporation tax with respect to all of its income and capital, and a corporation not having its head office or principal place of business within the enforcement area of the present Law but having its asset or business within the enforcement area of the present Law shall be liable to pay corporation tax with respect to the asset or the income from business and the capital concerned therewith which is located within the enforcement area of the present Law.

Article 3. In case of the amalgamation of corporations, the corporation which continues to exist after the amalgamation, or has been newly created by the amalgamation, shall be liable to pay corporation tax in respect to the income and capital of a corporation which ceased to exist due to the amalgamation.

Article 4. No corporation tax will be imposed on prefectures, cities, towns, villages, and other public bodies as may be prescribed by Ordinance and juridical persons established by virtue of Art.34 of the Civil Code.

Article 5. No corporation tax shall be imposed on the amount of capital of a corporation in an accounting period, when the computation made pursuant to Article 9 proves that there is no. taxable normal income (including the amount of income as accrued from the business in case the corporation tax is to be exempted by virtue of Art.6;the same goes in this Article), accrued to the corporation during said period;(excluding the period in liquidation;the same goes hereinafter);the same shall hold good in respect of such amount in corporation tax imposed upon the capital employed during an accounting period, as is equalto the excess of the amount of corporation tax, imposed, in accordance with the provision of Arts.17 and 41, upon the capital employed during the period, over the amount of normal income accrued during the period less the amount of corporation tax imposed upon the normal and excess incomes during the same period.

Article 6. Such corporations which are engaged in the manufacturing, mining or picking of staple products as may be designated by Ordinance may be, as prescribed by Ordinance, exempt from corporation tax in respect of the amount of normal income accrued from said businesses during the accounting period in which the corporations have begun said businesses and accounting periods ending within three years from the first day of the following accounting period. In case such corporations engaged in manufacturing, mining or picking of staple products as are referred to in the preceding paragraph have expanded their equipments, the corporations may be, as prescribed by Ordinance, exempt from corporation tax in respect of the amount of normal income arising out of the expanded equipments for said businesses, during the accounting period in which the expansion takes place and to accounting periods ending within three years from the first date of the following accounting periods.

Article 7. An accounting period within the meaning of the present Law shall be the accounting period as designated by statutes or by charaters of corporations. When a corporation has dissolved or ceased to exist due to amalgamation during the term of an accounting period, the term of time between the first day of the accounting period and the date of dissolution or amalgamation shall be deemed one accounting period.

CHAPTER II. TAXABLE STANDARDS

Article 8. Corporation tax shall be imposed in respect of such income and capital as are enumerated hereunder: 1. Income accrued during every accounting period. 2. Excess income accrued during every accounting period. 3. Income at liquidation. 4. Capital employed during every accounting period.

Article 9. The amount of normal income, during every accounting period, of a corporation having its head office or principal place of business within the enforcement area of the present Law shall be the amount of its gross amount of profits minus its gross amount of losses. The amount of corporation tax fine or forfeit, (including fine or forfeit imposed by administrative notices) which is paid or to be paid during every accounting period shall not be counted in loss, in the computation of the normal income referred to in the preceding paragraph. The excess in donations made by a corporation, during every accounting period, over the amount as computed in accordance with the provisions prescribed by Ordinance shall not be counted in less in the computation of the normal income referred to in par.1;provided, however, in respect of such donations as may be prescribed by Ordinance, a part of the amount thereof may be counted in loss. The amount of loss accrued during the accounting period beginning within one year prior to the beginning date of each accounting period shall be counted in loss in the computation of the normal income referred to in par.1. Matters necessary for the computation of normal income referred to in par.1, besides the matters prescribed in the preceding three paragraphs, shall be prescribed by Ordinance.

Article 10. The amount of income tax paid by a corporation in every accounting period in accordance with Art.18 of the Income Tax Law, shall be credited against the amount of the corporation tax imposable upon the normal and excess incomes accrued during the period, as prescribed by Ordinance. In the case of the preceding paragraph, the amount of income tax paid in accordance with Art.18 of the Income Tax Law which is creditable by virtue of the preceding paragraph, shall not be counted in loss in the computation of normal income of a corporation. The provisions of the preceding two paragraphs shall apply in respect of corporation tax imposable upon the income at liquidation.

Article 11. The normal income in every accounting period of a corporation not having its head office or principal place of business within the enforcement area of the present Law shall be computed by applying the provisions of Art.9 to the asset or business of the corporation located within the enforcement area of the present Law.

Article 12. The provisions of Arts.4 and 7 of the Income Tax Law shall apply in respect of the taxation of corporation tax. With regard to the computation of the amount of normal income of a trust company, the amount of income or expenditures due to jiont-operation-trust shall not be included in its gross amount of profits or its gross amount of losses.

Article 13. The excess income of a corporation in every accounting period shall be the excess amount of the normal income of every accounting period over 10% of the amount of capital employed in every accounting period. The provision of Art.9, par.3, proviso shall not apply in respect of the computation of the normal income of every accounting period in computing the excess income referred to in the preceding paragraph.

Article 14. Income at liquidation of a corporation shall be the amount as enumerated hereunder: 1. In case of dissolution of a corporation, the excess of the amount of assets left at liquidation over the amount of paid-in capital or of contribution at the time of dissolution. 2. In case of amalgamation, the amount of the excess of the total amount of the paid-in share capital or the amount of contributions and the amount of money which are given to the stockholders or partners of the corporation which ceased to exist due to amalgamation by the corporation which have been newly created by amalgamation, over the amount of paid-in share capital or the amount of contributions of the corporation which has been amalgamated ed at the time of amalgamation. In case of dissolution of a corporation, an amount in donations made during liquidation, as prescribed by Ordinance, shall be deducted from the amount of assets left at liquidation. The provision of Art.9, par.5 shall apply in respect of the computation of income at liquidation referred to in par.1.

Article 15. The capital in every accounting period of a corporation having its head office or principal place of business within the enforcement area of the present Law shall be calculated as follows:The monthly average of the amount of paid-up capital, contributions or funds as of the end of each month of each accounting period plus the amount of reserves at the beginning date of each accounting period shall be multiplied by the number of months in said accounting period and then divided by 12. The amount thus obtained shall be regarded as the capital of the corporation in said accounting period. The capital of religious corporations or incorporated labour unions shall be computed, as prescribed by Ordinance, by applying the provisions of the preceding paragraph to their assets or businesses held for profit making purposes. The capital of a corporation not having its head office or principal place of business within the enforcement area of the present Law shall be calculated, as prescribed by Ordinance, by applying the provision of par.1 to the capital or business located within the enforcement area of the present Law. With regard to the calculation of capital in case of amalgamation, different provisions may be prescribed by Ordinance notwithstanding the provisions of the preceding three paragraphs.

Article 16. "A reserve" within the meaning of the present Law shall be the fund reserved and similar types of amount which have been reserved from the normal income of a corporation. The amount which is to be paid as corporation tax shall not be counted in the amount of reserve referred to in the preceding paragraph.

CHAPTER III. TAX RATES

Article 17. Corporation tax shall be imposed at the following rates: 1. Normal income accrued during every accounting period. A corporation having its head offce or principal place of business within the enforcement area of the present Law.... 35% of the amount of income. A corporation not having its head offce or principal place of business, but having asset or business, within the enforcement area of the present Law.... 45% of the amount of income; 2. Excess income accrued during every accounting period. The tax shall be imposed at the following rates on the successive increments of excess income: The excess of normal income over 10% of the amount of capital employed.... 10%; Ditto over 20% of the amount of capital employed.... 20%; Ditto over 30% of the amount of capital employed.... 30%; In respect of a corporation the capital of which is not exceeding 100,000 yen per annum, "10%" referred to above shall read "5%," "20%" shall read "15%," and "30%" shall read "25%." 3. Income at liquidation. Amount of income at liquidation shall be divided into the following grades and each tax rates shall be applied as follows: Amount composed of reserve or income which is exempted from corporation tax by virtue of the present Law or other statutes.... 20%; Other amount than shown above.... 45%. 4. Capital employed during each accounting period.... 0.5% of the amount of capital.

CHAPTER IV. DECLARATION

Article 18. A corporation (excluding the case as prescribed in Art.21) shall, within two months following the date on which an accounting period of the corporation closed, file with the Government a return stating therein the amount of normal income, excess income and capital of the accounting period concerned. The return referred to in the preceding paragraph shall be, as prescribed by Ordinance, accompanied by an inventory, balance sheet, statement of profits and loss, detailed statement concerning the amount of the normal income, excess income and capital as computed pursuant to Art.6, Art.9, Arts.11-13 and Art.15, and the detailed statement concerning the computation of corporation tax due on the income and capital concerned. A corporation not having its head offce or principal place of business within the enforcement area of the present Law, shall file, besides those papers referred to above, detailed statement of normal income and excess income showing profits and losses arising out of asset or business located within the enforcement area of the present Law and the same of the amount of capital, employed relating to asset or business located within the enforcement area of the present Law. A religious corporation or an incorporated labour union shall file, besides the papers referred to in par.2, a detailed statement concerning the amount of normal income and excess income in every accounting period in respect of asset or business held for profits making purposes and a detailed statement concerning the amount of capital in respect of asset or business concerned. The provisions of pars.1-4 shall apply to cases where a corporation has no taxable amount of the normal income, excess income or capital in every accounting period.

Article 19. In case the account of a corporation referred to in par.1 of the preceding Article have not been settled on or before the filing date of a return referred to in the same paragraph, the corporation shall provisionally estimate the amount of normal income, excess income and capital during the accounting period concerned and file with the Government the return stating therein the amount of normal income, excess profits and capital as estimated provisionally, instead of the filing of a return as prescribed in par.1 of the preceding Article. The return as referred to above shall be accompanied by a detailed statement concerning the amount of normal income, excess income and capital as provisionally estimated during the accounting period concerned, a detailed statement concerning the computation of the amount of corporation tax and other necessary documents. The provision of par.5 of the preceding Article shall apply in respect of the filing of the return referred to in par.1.

Article 20. In case the corporation which filed the return as estimated provisionally pursuant to the provision of par.1 of the preceding Article, has finally settled the account, the corporation shall, within twenty days after the settlement of account, file with the Government a return stating therein the amount of normal income, excess income and capital during the accounting period concerned. The provisions of Article 18, pars.2-5 shall apply in respect of the filing of the return referred to in the preceding paragraph.

Article 21. In case the accounting period of a corporation as designated by statutes or by charters of corporations (such accounting period shall hereinafter be reffered to "fixed accounting period" ) is exceeding six months, the first six months after the beginning of the fixed accounting period shall be deemed one accounting period in the application of the present Law. In this case, the corporation concerned shall estimate the amount of normal income, excess income and capital in the accounting period and file, within two months after the ending of the accounting period concerned, with the Government a return stating therein the amount of normal income, excess income and capital in said accounting period. The provision of Art.19, pars.2 and 3 shall apply in respect of the filing of a return referred to in the preceding paragraph. The provisions of the preceding two paragraphs shall not apply in respect of religious corporations and incorporated labour unions.

Article 22. The corporation coming under the provision of par.1 of the preceding Article shall, within two months after the close of the fixed accounting period, file with the Government a return stating therein the amount of normal income, excess income, and capital in the fixed accounting period concerned (including the period deemed one accounting period by virtue of par.1 of the preceding Article). The provisions of Art.18, pars.2, 3 and 5 shall apply in respect of the filing of a return referred to in the preceding paragraph. The provisions of Art.19 and Art.20 shall apply in respect to the case where the account of said fixed accounting period is not settled by the filing date prescribed in par.1.

Article 23. A corporation in liquidation shall each time on distributing the excess of the liquidate assets over the amount of the paid-up shares or the amount of investment, file the return of income at liquidation, by the time-limit as prescribed by Ordinance, with the Government, as prescribed by Ordinance. The return of the preceding paragraph shall, as prescribed by Ordinance, accompany the inventory and balance sheet at the time of dissolution, the same at the time of the distribution of assets and other papers on the computation regarding liquidation as well as the detailed report on the computation of the corporation tax on the income at liquidation concerned.

Article 24. A corporation created by, or continues to exist after amalgamation, shall within 2 months after the amalgamation, file a return with the Government stating therein the income at liquidation of the corporation ceased to exist due to the amalgamation. The return of the preceding paragraph shall accompany the balance sheet at the time of dissolution and other papers regarding amalgamation as well as the detailed statement on the assets succeeded by the amalgamation.

Article 25. In case a corporation has found an omission in the return on the normal income, excess income, capital or income at liquidation, which was filed with the Government, pursuant to Arts.18-24 or filed after the time-limit as referred to in Arts.18-24, it shall immediately apply to the Government to revise the return. In making the revisions, the corporation shall file the detailed statement on the revision.

CHAPTER V. PAYMENT

Article 26. Corporation taxes referred to under each of the following numbers, shall be paid by the time-limit of each number concerned as provided for by Ordinance: 1. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.18.... by the time-limit of said paragraph; 2. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.19.... by the timelimit of said paragraph; 3. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.20 (excluding the corporation tax to be paid pursuant to the preceding number).... by the time-limit of said paragraph; 4. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.21.... by the time-limit of said paragraph; 5. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.22 (excluding the corporation tax to be paid pursuant to the preceding number).... by the time-limit of said paragraph; 6. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.19 as applied by virtue of par.3 of Art.22 (excluding the corporation tax to be paid pursuant to item 4).... by the time-limit of said paragraph; 7. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period as declared in the return filed pursuant to par.1 of Art.20 as applied by virtue of par.3 of Art.22 (excluding the corporation tax to be paid pursuant to item 4 and the preceding item).... by the time-limit of said paragraph; 8. Corporation tax imposed on the amount of income at liquidation as declared in the return filed pursuant to par.1 of Art.23.... by the time-limit of said paragraph; 9. Corporation tax imposed on the amount of income at liquidation as declared in the return filed pursuant to par.1 of Art.24.... by the time-limit of said paragraph as provided for by Ordinance. Corporation tax imposed on the normal income, the excess income and the capital of each accounting period or the income at liquidation of a corporation which has been declared after the time-limit of Arts.18-24, or imposed on the normal income, the excess income and the capital or the income at liquidation which increased due to the revision of a return made pursuant to par.1 of Art.25, shall be paid on the date of filing or revision of the return concerned.

Article 27. If, in the case of the dissolution of corporation, the corporation liquidates its assets without paying the corporation tax imposed on the normal income, the excess income and the capital or the corporation tax imposed on the income at liquidation, the liquidators and the persons to whom the liquidate assets have been distributed, shall be jointly liable to pay said taxes; provided that, the recipients of the liquidate assets shall be liable to pay the taxes only to the extent of the benefit he received.

Article 28. In case a corporation which is liable to pay corporation tax, has failed to pay the tax by the time-limit as prescribed in par.1 of Art.26, or by the filing date or the revising date of a return as prescribed in par.2 of the same Article, the Government will enforce the payment in accordance with Art.9 of the National Tax Collection Law.

CHAPTER VI. CORRECTION AND DETERMINATION OF TAXABLE STANDARDS

Article 29. In case the taxable standards (the taxable standards shall hereinafter mean normal income, excess income or capital of each accounting period or income at liquidation declared in the return filed pursuant to Art.20, par.1, Art.23, par.1 or Art.24, par.1 as applied in Art.18, par.1, Art.20, par.1, Art.22, par.1, and Art.22, par.3, or revised pursuant to Art.25, par.1, are different from the same investigated by the Government, the Government shall, on the basis of its investigation, correct the taxable standards. In case the taxable standards declared in the return filed pursuant to Art.19, par.1 as applied in Art.19, par.1, Art.21, par.1 or Art.22, par.3, or revised pursuant to Art.25, par.1, are different from the same investigated by the Government, the Government shall, on the basis of its investigation, correct the taxable standards.

Article 30. The Government will determine the taxable standards on its own investigation, in case a corporation which is deemed liable to pay the tax failed to file its return, or filed the return stating therein that there was no taxable income or capital.

Article 31. In case an omission has been found in the corrected or determined taxable standards after the correction or determination as referred to in the preceding two Articles took place, the Government shall revise the corrected or determined standards on its own investigation.

Article 32. The Government when corrected or determined the taxable standards in accordance with the preceding three Articles, shall notify the same to the corporation liable to pay the tax.

Article 33. When the Government has corrected or determined the taxable standards in accordance with Arts.29-31, the Government shall collect the penalty tax (meaning the tax in deficit) not later than one month after the notification of the preceding Article has been issued.

CHAPTER VII. SPECIAL RULES FOR A FAMILY-CORPORATION

Article 34. In case a family-corporation is deemed to have acted, or computed the taxable standards, aiming at the evation of the corporation tax, the Government may determine the taxable standards on the basis of its interpretation regardless of the actions or computations concerned. "A family-corporation" within the meaning of the present Law shall be the corporation, of which the total amount of its stocks or contributions owned by a stockholder or a member of the corporation, or their relatives, employee or corporations of which they have such special interests as prescribed by Ordinance take proportion of the half or more of the whole amount of stocks or contributions of the corporation.

Article 35. In case a family-corporation has reserved more than 30% of its normal income in an accounting period, the Government may collect an amount, as an additional corporation tax to corporation tax on normal income, which is to be computed be applying a special rate to the excess over the 30%. The special rate referred to under the preceding paragraph shall be figured out as follows: Translate the normal income on a yearly basis. Divide this amount and apply 35% to the amount under 100,000 yen, 55% to the amount over 100,000 yen but under 200,000 yen, 65% to the amount over 200,000 yen but under 500,000 yen, 70% to the amount over 500,000 yen but under 1,000,000 yen and 75% to the amount over 1,000,000 yen, successively. Then add up each amount thus computed. The ratio of the amount thus added up, to the amount of the normal income of the corporation in the accounting period will be the special rate mentioned above. The normal income and reserve therefrom referred to under par.1 shall be computed by deducting the amount of corporation tax due on the normal income, excess income and capital (excluding the amount to be added by virtue of the said paragraphs) respectively from the normal income and the reserve therefrom. The provisions of par.1 shall not apply to a corporation which does not have main office, but holds assets or businesses, within the enforcement area of the present Law, and other corporations as may be provided for by Ordinance. Arts.32 and 33 shall apply in respect to cases where the additional tax is to be collected pursuant to, par.1.

CHAPTER VIII. RE-INVESTIGATIONS, PETITION AND LAW SUIT

Article 36. In case a corporation liable to pay the tax has an objection in respect to the taxable standards as notified by the Government in accordance with Art.32 or to the penalty tax as notified by the Government in accordance with Art.32 as applied in par.5 of the preceding Article or to the amount of tax as notified by the Government pursuant to Art.44, it may request the re-investigation to the Government stating the reason for its dissatisfaction within a month from the date on which it received the notification. The Government will not postpone the collection of tax if the request by virtue of the preceding paragraph is made;provided, however, the Government may, if it deems unavoidable, postpone the collection of the tax.

Article 37. In case a request is made by virtue of par.1 of the preceding Article, the objection shall be settled by the Government and the settlement shall be notified to the corporation liable to pay the tax. Necessary matters relating to the provision of the preceding paragraph shall be provided for by Cabinet Order.

Article 38. A corporation who has an objection to the settlement made pursuant to par.1 of the preceding Article may make suit to the Government or appeal to the Court. The petition or law suit concerning the correction or determination made by the Government pursuant to Arts.29-31, the additional tax imposed pursuant to par.1 of Art.35 or the penalty tax imposed pursuant to Art.43, is not able to be made unless the settlement through the reinvestigation has been made.

CHAPTER IX. MISCELLANEOUS PROVISIONS

Article 39. Any person may, as prescribed by Ordinance, request the Government to inspect return filed by corporations liable to pay the tax and documents regarding correction, determination or revision of taxable standards.

Article 40. In case an information given to the Government of the fact that a corporation deemed liable to pay the tax had failed to file its return or of the suspect of an omission in the taxable standards thereof has led the Government to the determination or correction of the taxable standards thereof, the Government may, as prescribed by Ordinance, give the informer an amount not exceeding 10% of the corporation tax as recovered by the determination or correction as a reward;provided, however, the maximum of the reward shall not exceed 100,000 yen. The provision of the preceding paragraph shall not apply in case the informer happens to be a Government official or a person receiving similar treatment;the same shall hold good in case the information has originated from the knowledge acquired by a Government official or person receiving similar treatment or from the knowledge acquired by an official of public bodies (excluding a Government official and a person receiving similar treatment) on business or from the fact collected by illegal behavions.

Article 41. In case the amount of corporation tax upon the capital of each accounting period, computed pursuant to the provisions of Art.17 proves less than 500 yen, it shall be 500 yen.

Article 42. A corporation liable to pay the tax shall, as prescribed by Ordinance, pay an amount of the penalty tax additional to the corporation tax as referred to under par.2 of Art.26 which is computed, according to the term of time prescribed by Ordinance, by multiplying the amount of said corporation tax at the rate of 3 sen per 100 yen of said corporation tax on the date of payment prescribed by the provision of said paragraph. The provisions of the preceding paragraph shall apply in respect to the collection of the penalty tax referred to under Art.33 by the Government.

Article 43. Excepting cases where there are good reasons for the failure to file a return by the filing date prescribed under Arts.18-22 and Art.24 or by the filing date prescribed by Ordinance in accordance with the provisions of par.1 of Art.23 or for the making error on the taxable standards returned formerly or revised if a return referred to in par.1 of Art.25 has been revised or for the fact that the taxable standards returned by a corporation is at varience with the same investigated by the Government, the Government, when the corporation tax referred to under par.2 of Art.26 has been paid or the corporation tax equal to the penalty tax of Art.33 is to be collected, shall, as prescribed by Ordinance, collect, according to the term of time prescribed by Ordinance, a penalty tax in the form of corporation tax, which is to be computed by multiplying the tax concerned at the rate of 5% for each month elapsed;provided, the maximum thereof shall be 50% of the tax amount concerned.

Article 44. The Government, when determined the penalty tax to be collected pursuant to the provisions of the preceding Article shall notify the same to the corporation which is liable to pay the tax.

Article 45. Taxation officials may, when necessary for the purpose of investigation of the corporation tax, ask questions to the corporations which are liable or deemed liable to pay corporation tax or inspect their books, papers or other things relating thereto.

Article 46. Taxation officials may, when necessary for the purpose of investigation of corporation tax, ask questions to the persons who are deemed liable to pay money or commodities to the corporation liable or deemed liable to pay corporation tax, or to the persons who are deemed entitled to receive money or commodities from said corporation, or inspect books and papers relating to their businesses.

Article 47. Prefectures, cities, towns, villages and other public bodies shall not impose the surtax of the corporation tax.

CHAPTER X. PENALTIES

Article 48. In case a corporation tax has been evaded by an act of fraud or other unjust means, the representative, deputy, employee or other members of the corporation who have committed the same, shall be imprisoned for not more than one year, or fined or forfeit not exceeding three times of the tax evaded. The violator of the preceding paragraph may, according to circumstances, be inflicted both imprisonment and fine. In the case of par.1 the Government shall determine the taxable standards and collect the tax at once.

Article 49. A person who comes under any of the following numbers shall be imprisoned for not more than one year, or fined not exceeding 10,000 yen. 1. A person who has refused, disturbed or evaded the inspection of books, papers or other things, which was conducted in accordance with the provisions of Art.45 or Art.46. 2. A person who has presented the documents of the preceding number stating falsehood therein. 3. A person who has failed to answer questions made by taxation officials in conformance with the provisions of Art.45 or Art.46. 4. A person who has answered falsehood to the questions of the preceding number.

Article 50. In case a person who is or was engaged in investigation of the corporation tax has divulged or abused secrets as acquired relating to the investigation or re-investigation, he shall be imprisoned for not more than two years, or fined not exceeding 20,000 yen.

Article 51. In case a representative of a corporation, a deputy, employee or a member of a corporation or of an individual has committed a violation as referred to under Art.48 or Art.49, the person who actually committed violation, shall be punished as well as the corporation or the individual shall be fined in accordance with the provisions of each Article concerned.

Article 52. A person who, regarding the corporation tax of the other persons, has given to the Government a false information on the matters referred to under Art.40 shall be imprisoned for not more than three years, or fined not exceeding 10,000 yen.

Article 53. In respect to a person who has committed the violation as prescribed under par.1 or Art.48, the proviso of par.3 of Art.38, par.2 of Art.39, Arts.40 and 41, par.2 of Art.48 and Arts.63 and 66 of the Penal Code shall not apply;provided, however, this shall not hold good in case the person is to he imprisoned.

SUPPLEMENTARY PROVISIONS:

Article 1. The present Law shall come into force as from April 1, 1947.

Article 2. The present Law shall be enforced in, Honshu, Hokkaido, Shikoku, Kyushu and adjacent islands thereof (excluding areas as may be prescribed by Imperial Ordinance).

Article 3. In respect to a corporation tax imposable upon the normal income, excess income and capital for each accounting period, the present Law shall apply as from accounting periods which close on or after April 1, 1947, and in respect to a corporation tax imposable upon the income at liquidation, as from dissolutions or amalgamations which take place on or after said date.

Article 4. The provisions of Art.21 shall apply in respect to an accounting period of a corporation which will close on or after April 1, 1947 and the date six months after the beginning of which will come after the enforcement of the present Law.

Article 5. The old Law shall still prevail in respect to a corporation tax imposable upon the normal income, excess income and capital for each accounting period which has closed on or prior to March 31, 1947 and in respect to a corporation tax imposable upon the income at liquidation attributable to dissolution or amalgamation which has taken place on or prior to said date;provided, however, in case the amount of income, capital or additional tax is to be determined pursuant to Art.24, par.1 before the revision, the Government may, notwithstanding the provision of said paragraph, dispence with the determination of the Income Investigation Committee as prescribed under the Income Tax Law before the revision as made by the Law 1947 concerning the Revision of the Income Tax Law, and may determine the amount of income, capital or additional tax on its determination.

Article 6. The classified income tax upon the income from dividends and interests, paid by a corporation in accordance with Art.10 of the old Income Tax Law during the accounting period which will close after the enforcement of the present Law or during the term of liquidation due to the dissolution taking place after the enforcement of the present Law shall be deemed as the income tax referred to under Art.18 of he new Income Tax Law and the provision of Art.10 shall apply to it.

Article 7. In Art.37, par.2, "Cabinet Order" shall read "Imperial Ordinance" and in Art.38, "the Court" shall read "the Administrative Litigation Court" pending the enforcement of the Constitution of Japan.