I hereby give My sanction to the Imperial Ordinance concerning the amendments of the Capital Levy Law Enforcement Regulations and cause the same to be promulgated.
Signed: HIROHITO, Seal of the Emperor
This tenth day of the second month of the twenty-second year of Showa (February 10, 1947)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Finance ISHIBASHI Tanzan
Imperial Ordinance No. 47
The Capital Levy Law Enforcement Regulations shall be partly amended as follows:
The following paragraph shall be added to Art. 54.
In case a taxpayer is able to appropriate the properties as are enumerated in par. 1, item 2 or 3, by virtue of par. 2, if there are shares or other contributions in the properties which were the basis for the computation of the taxable amount of the taxpayer, he may, as prescribed by the Minister of Finance, appropriate for the payment in kind such properties as are enumerated in par. 1, items 1 to 3 inclusive and which were owned at the date of investigation by the corporation in which he invested, besides the properties enumerated in the said items.
The following item shall be added to Art. 55.
3. In case the properties, which were the basis for the computation of the taxable amount, are composed of shares and other contributions, if the properties as owned by the corporation, on the date of investigation to which the taxpayer invested are appropriated for the payment in kind: the value of the properties concerned as appraised pursuant to Chapter III of the Law, Chapter III of the present Ordinance, and the associate Ordinances, notwithstanding the provisions of the preceding two items.
In Art. 56, par. 1, Art. 60 and Art. 70, par. 1, "or par. 4" shall be added next to "Art. 54, par. 1."
In Art. 71, "Art. 54, par. 2 and 3" shall read "Art. 54, par. 2-4."
Article 72-1. In case a taxpayer's property held on the date of investigation has been damaged, within the period as are enumerated hereunder, due to earthquake, flood, lightning, fire, volcanic eruption or any other act of God (excluding old account property and quasi-old-account property, and including the properties deemed to have replaced for the properties as owned at the date of investigation; the same goes in this Article) (including the case where the value of shares or other contributions of a corporation has heavily declined because of natural calamities referred to above), if the amount of damaged property exceeds 30% of the value of properties as owned at the date of investigation or 100,000 yen (in respect of co-living families, the total amount of damaged property exceeding 30% of the value of properties owned on the date of investigation by the families or 100,000 yen) and the taxpayer is acknowledged by the superintendent of a taxation office to be scarcely able to pay the tax, the superintendent of a taxation office may abate or exempt from the capital levy equivalent to the amount as are enumerated in each item hereunder.
1. In case the taxpayer has been damaged after the date of investigation but before the time as prescribed in Art. 40, par. 1, item 1 or item 3 of the Law:
(A) In respect of the capital levy imposable upon the taxable amount stated in the return pursuant to Art. 37, par. 1 or Art. 38 of the Law, the difference between the amount of tax concerned and the amount of capital levy as computed by deducting the amount of damage from the taxable amount concerned.
(B) In respect of the capital levy equivalent to the increment of the tax accruing due to the revision of return pursuant to Art. 39, par. 1 of the Law or due to the revision of the taxable amount pursuant to par. 4 of the same Article, the amount of difference between the amount of the capital levy as computed on the basis of the revised taxable amount and the amount of the capital levy as computed by deducting the amount of damage from the revised taxable amount (excluding the amount of difference between the amount of the capital levy as computed by the taxable amount before revision and the amount of the capital levy as computed by deducting the amount of damage from the taxable amount before revision).
(C) In respect of the capital levy imposable upon the taxable amount stated in the return filed after the expiration of the time limit referred to in Art. 37 or Art. 38 of the Law, or in respect of the capital levy equivalent to the amount of tax accruing due to the revision of return pursuant to Art. 39, par. 3 of the Law or due to the revision of the taxable amount pursuant to par. 5 of the same Article, or in respect of the capital levy equivalent to the amount of the tax as collected by the correction or determination of taxable amount by virtue of Art. 46 of the Law, the amount as computed by multiplying the amount of tax concerned (excluding the amount of tax to be added by virtue of Art. 65, par. 1 of the Law, the amount of tax to be additionally collected by virtue of Art. 66, par. 1 of the Law, and the amount of tax which may be applied for the payment in the form of old-restricted accounts or quasi-old-restricted accounts) by the ratio of the damaged amount to the total amount of properties owned at the date of investigation.
2. In case the taxpayer has been damaged after the time as prescribed in Art. 40, par. 1, item 1 or item 3 of the Law but before the full payment of the capital levy, the amount as computed by multiplying the unpaid amount of tax concerned (excluding the amount of tax to be added by virtue of Art. 65, par. 1 of the Law, the amount of tax to be additionally collected by virtue of Art. 66, par. 1 of the tax and the amount of tax in delinquency and the amount of tax which may be applied for the payment in the form of old restricted account or quasi-old-restricted account) by the ratio of the damaged amount to the value of properties owned at the date of investigation.
The amount of damage referred to in the preceding paragraph shall be computed by deducting the insurance money to be paid pursuant to the insurance contract on the damaged properties from the amount computed by multiplying the amount of value of the properties concerned as computed pursuant to the provisions of Chapter III of the Law, Chapter III of the present Ordinance and the associate Ordinances by the ratio of the decreased amount to the amount of total properties concerned.
Article 72-2. In case the capital levy is to be abated or exempted by virtue of par. 1, item 1, (A) or (B) of the preceding Article the amount of tax to be abated or exempted by virtue of par. 1, item 1 (A) or (B) of the preceding Article shall not be counted in the "capital levy to be paid" referred to in Art. 55, par. 1 and Art. 56, par. 1, item 1 of the Law.
In case the capital levy is to be abated or exempted by virtue of par. 1, item 1, (A) or (B) of the preceding Article, "the taxable amount" referred to in Art. 55, par. 1 and Art. 56, par. 1, item 1 of the Law shall be the amount after deducting the damaged amount referred to in par. 1 of the preceding Article.
In case the capital levy is to be abated or exempted by virtue of par. 1, item 1, (A) or (B) of the preceding Article "the taxable amount" in Art. 38, par. 1, item 1 and Art. 46, par. 1, item 3 shall read "the amount by deducting damaged amount referred to in Art. 72, par. 1 from the taxable amount."
Article 72-3. In case a taxpayer desires to be abated or exempted his capital levy pursuant to the provision of Art. 72, par. 1 (excluding item 1 (B) of the same paragraph), he shall file an application stating therein such matters as provided for by the Minister of Finance to the superintendent of the taxation office covering the place of payment within the following period.
1. In case a taxpayer desires to be abated or exempted his capital levy pursuant to the provision of item 1 (A) of par. 1 of Art. 72: on or before March 15, 1947, or the filing date of Art. 38 of the Law; provided that in case the date on which the taxpayer has been damaged, is within two months before the said time-limits: within two months after the next day of the date on which he has been damaged.
2. In case a taxpayer desires to be abated or exempted his capital levy pursuant to par. 1, item 1 (B) of Art. 72: within the time-limit of the revision of the return of par. 1 of Art. 39 of the Law or the time-limit of the revision of the taxable amount of par. 4 of the same Article of the Law; provided that in case the date on which the taxpayer has been damaged is within two months before said time-limits: within two months of the next day of the date on which he was damaged.
3. In case a taxpayer desires to be abated or exempted his capital levy pursuant to Art. 72, par. 1, item 2: within two months of the next day of the date on which he was damaged; provided that in case the time-limit as enumerated in Art. 40, par. 1, item 2, item 4 or item 5 of the Law or the time-limit for payment referred to in Art. 50 are beyond two months of the next day of the date on which he has been damaged: by the said time-limits.
In case a taxpayer desires to be abated or exempted his capital levy pursuant to Art. 72, par. 1, item 1 (C), he shall file an application stating therein the matters as provided for by the Minister of Finance to the superintendent of the taxation office covering the place of payment simultaneously with the filing of his return or the revision of his return to be made pursuant to Article 39, par. 3 of the Law or the revision of the taxable amount to be made pursuant to par. 5 of the same Article or before the date for payment of Art. 50 of the Law (in case the date on which he was damaged, is after the filing date, or the date of revision of return or taxable amount, or within two months before the time-limit for payment of Art. 50 of the Law: within two months of the next day of the date on which he was damaged).
The superintendent of a taxation office, if he has made a disposition for abatement or exemption of capital levy pursuant to the provision of par. 1 of the preceding Article, shall inform the matter to the taxpayer.
Article 72-4. In case an application as referred to in par. 1 or par. 2 of the preceding Article has been filed, the superintendent of a taxation office, if he deems necessary, may postpone the collection of tax with the application of the taxpayer till the disposition for abatement or exemption pursuant to Art. 60, par. 1 of the Law is decided.
In case a taxpayer desires the postponement of the collection of tax pursuant to the provision of the preceding paragraph, he shall file the application stating therein matters as provided for by the Minister of Finance to the superintendent of the taxation office covering of the place of payment simultaneously with the filing of an application referred to in the preceding Article.
In case the disposition for the postponement of the collection of tax pursuant to par. 1 has been decided, the superintendent of the taxation office shall inform the matter to the taxpayer.
In case the abatement or exemption of the capital levy is allowable pursuant to the provision of Art. 72, par. 1, the collection of the tax may be postponed as provided for by the Minister of Finance, even in case an application as referred to in par. 1 or par. 2 of the preceding Article is not filed.
In Art. 79, "par. 2 of Art. 60" shall be deleted.
Supplementary Provision:
The present Ordinance shall come into force as from the day of its promulgation.