I hereby give My sanction to the Imperial Ordinance concerning the Revision of the Income Tax Law Enforcement Regulations, 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
Imperial Ordinance No. 110
THE INCOME TAX LAW ENFORCEMENT REGULATIONS
Chapter I. General Provisions
Chapter II. Taxable Standards
Chapter III. Declaration
Section 1. Provisional Return
Chapter IV. Payment
Section 1. Self Assessment
Chapter V. Reinvestigation
Chapter VI. Miscellaneous Provisions
CHAPTER I. GENERAL PROVISIONS
Article 1.
The public bodies to be free from the income tax by virtue of Art. 3 of the Income Tax Law (hereinafter called the Law) shall be as follows: 1.
Associations of "To," "Fu," and "Ken"; associations of "Do," "Fu," and "Ken"; associations of "Fu" and "Ken"; associations of "To" cities, towns, and villages; associations of cities, towns, and villages; associations of towns and villages; wards in Tokyo Metropolis; wards in cities, towns, an villages; bodies similar to towns and villages, located in the area where the Town and Village Regulation is not put in operation; irrigation associations; federations of irrigation associations and Hokkaido Public Works Associations. 2.
Arable land adjustment associations and federations of these associations, and bodies similar to such associations. Article 2.
As to the application of the provisions of Art. 4, par. 2 of the Law, whether the beneficiaries are specified or not, or they are existent or non-existent, shall be determined according to the actual situations as of 31st of December in each year; provided, as to the case referred to under Art. 21 of the Law, as of 1st of April, as to the case referred to under Art. 22, par. 1, item 1 and Art. 23, par. 1, of the Law as of 1st of July, as to the case referred to under Art. 22, par. 1, item 2 and Art, 23, par. 2 of the Law, as of 1st of October, each year respectively, as to the case referred to under Art. 29, par. 1, of the Law, as of the date of death, and as to the case referred to under Art. 29 par. 2 of the Law, as of the time when the taxpayer ceases to have domicile and residence within the territory where the Law is prevailing. Article 3.
As to the application of the provisions of Art. 5. par. 1 of the Law, in case shares or equities have been acquired as a bequest, the costs of acquisition paid by the decedent shall be deemed as paid by the heir in order to acquire those shares or equities. Article 4.
The interests on check deposits provided for in Art. 6, item 4 of the Law shall be the interests on the current deposits withdrawable by checks, and not exceeding 3 rin per day on principal of 100 yen in rates. Article 5.
Pursuant to the provisions of Art. 8, par. 3 of the Law, in case both of the spouses are taxpayers, the one who has more incomes shall be excluded from the scope of the dependents of said paragraph. Article 6.
The scope of the disabled provided for in Art. 8, par. 3 of the Law shall be those who are usually in state of unsounded mind, deaf, dumb, blind, or those who need watching at all times owing to a heavy injury on his body or to an incurable disease. CHAPTER II. TAXABLE STANDARDS
Article 7.
The assets referred to in item 7, par. 1, Article 9 of the Law shall be as follows: 1.
Investment in juridical persons (including fund and subscription); 2.
Rights on patent, utility, model, design or trade-mark, copyrights, publication rights, business rights or other similar rights. Article 8.
Assets referred to under par. 4, Article 9, and par. 4, Article 10 of the Law shall be the assets provided for under item 1 of the preceding Article. Article 9.
As to the provisions of item 7, par. 1, Article 9 of the Law, the costs for the acquisition of real estates, rights thereon, vessels (including vessels under construction), rights on or equipments of mining or placer, or assets provided for under Art. 7, item 2, which were acquired after the date of investigations defined in Article 1 of the Capital Levy Law, shall be, for those which were acquired by construction, manufacture, or creation: the expenses of construction, manufacture or creation (including the prospecting expenses for the rights on mining or placer); and for those acquired by transfer: the countervalue of same (including miscellaneous charges necessitated in acquiring them). For purposes of the provisions of item 5, Article 10 of the Law, the assets acquired due to inheritances, donations or bequests, shall be deemed to have been acquired by heirs, donees or legatees at the time when the decedents, donors, or bequeath had acquired them, and the cost for equipments, improvements or expenses for transfer paid by the decedents, donors or bequeath, shall be deemed as paid by the heirs, donees or legatees.
In case of the provisions of pars. 3-5, Article 12 of the Law, the amount deductible from the incomes other than earned or retirement income of each member of a co-living family shall be according to the statement made in the April provisional return, the July provisional return or the October provisional return, or the final return or returns, provided for in par. 1 or 2, Article 29 of the Law; provided in case of non-statement, improper statement, or non-presentation of the returns, the amount shall be the amount calculated on the amount deductible from the income other than the earned or retirement incomes in proportion to the amount of such incomes each of the members of co-living family has gained. Article 11.
The provisions of the preceding Article shall apply, in case of par. 2, Article 14 of the Law, to the amount deductible from the earned income of each member of co-living family. In this case the clause "the amount deductable from the income other than the earned or retirement income" in the proviso of the preceding Article shall read "the amount deductible in compliance with the provisions of pars. 1 and 2, Article 14 of the Law," and the clause "the amount of income other than earned or retirement income" shall read as "the amount of the income tax calculated applying the provisions of Articles 12 and 13 of the Law". Article 12.
The income tax imposable on a person referred to under Article 1, par. 1 or par. 2, item 1 of the Law whose income (or, in respect to a co-living family, the total income of members thereof) does not exceed 50,000 yen, shall be computed pursuant to the annexed table I of the Law according to the income and number of dependents, notwithstanding Articles 12-14 of the Law (or, in respect to a person referred to under Article 1, par. 2, item 1, pursuant to the annexed table 1 of the Law according according to the income, deeming the number of dependents as 0; (the same goes in this Article); in this case, the income of each member shall be added together and the tax thereon shall be found in the annexed table I according to the number of dependents; the tax for each member shall be computed by allocating the total tax in proportion to the amount of the income of each member. Article 13.
In case the person referred to under the preceding Article comes under any of the following items the income tax referred to under each item shall be found in the annexed table I under the column for "dependents 0," notwithstanding the provisions of the preceding Article: 1.
In respect to a person who failed to file the April, July or October provisional return or failed to state matters relating to his dependents as provided for under Art. 21, par. 1, item 4 of the Law in any of these returns, the income tax referred to under item 1 of the said paragraph. 2.
In respect to a person who failed to file the final return or return as provided for under Art. 29. par. 1 or 2, or failed to state matters relating to his dependents as provided for under Art. 26, par. 1, item 4 of the Law in any of these returns, the income tax referred to under item 1 of said paragraph (including same item as made to apply by virtue of Art. 29, par. 1 or 2 of the Law). The provision of the latter half of the preceding Article shall apply to the case of the preceding paragraph.
The amount of income tax, paid relating to the trust property kept under the joint-operation-trust, to be deducted in accordance with the provisions of Art. 19, par. 1 of the Law from the income tax paid and due on the profit of the joint-operation-trust, shall be deducted on withholding the income tax by a trust company in accordance with the provisions of Art. 37, par. 1, or of Art. 41 of the Law. Article 15.
Staple products referred to under Art. 20, par. 1 of the Law shall be as follows: 1.
Lime nitrogen, ammonium sulphate, powder of burnt potassium alum, powder of burnt potassium quartzite trachyte, and superphosphate lime (including transformed fertilizer) 3.
Gold ore and alluvial gold 4.
Petroleum, coal and lignite 5.
Potassium quartzite trachyte. Article 16.
The expansion of equipments for the manufacture, digging, or collection which is favored the exemption of income tax in accordance with the provisions of Art. 20, par. 2, of the Law shall be limited to those not less than 30 per cent of the increase of capacity over that of pre-expansion. Article 17.
Those who continue, or have facts considered as continuation of, manufacture, digging or collection mentioned in the preceding two Articles, shall have the right to take over the remainder of the period of exemption of income tax, if any. Article 18.
The exemption of the income tax provided under Art. 20 of the Law shall not apply in case the declaration concerning exemption of income tax mentioned in said Article was stated in neither of April provisional return, July provisional return, October provisional return, July revised provisional return, October revised provisional return, the final return nor the return referred to under Art. 29, par. 1 or 2 of the Law except the cases in which the chief of the tax office recognizes the existence of special circumstances. CHAPTER III. DECLARATION
Section 1. Provisional Return
Article 19.
April provisional return, July provisional return or October provisional return shall be filed with the chief of tax office concerned stating therein matters referred to under each item of par. 1, Art. 21 of the Law and matters shown hereunder: 1.
Name, and domicile or residence of taxpayer; 2.
Names of persons entitled to the deduction of Art. 12, par. 6 and Art. 14, par. 3 of the Law, amount of the deduction and other necessary matters on the deduction; 3.
Matters relating to the exemption of the income tax referred to under Art. 20 of the Law; 4.
Other matters to be referred to. Statements on the accounting of businesses for the manufacture, digging or collection of staple products as referred to under Art. 20 of the Law shall be attached to the return to be filed pursuant to item 3 of the preceding paragraph.
July revised provisional return or October revised provisional return shall state changes in the matters referred to under each item of par. 1, Art. 21 of the Law and of par. 1 of the preceding Article and be filed with the chief of the tax office concerned. The provisions of par. 2 of the preceding Article shall apply to the filing of the return referred to under the preceding paragraph.
In case of difficulties in communications or transportations or of other unavoidable circumstances covering the whole or a part of prefectures, the Minister of Finance may appoint the area and date and put off the filing date of returns provided under Arts. 21-23 of the Law. In case of difficulties in communications or transportations or of other unavoidable circumstances, the chief of the tax office, may, by the petition of taxpayers, put off the filing date of returns provided under Art. 21-23 of the Law by appointing other date.
Those who desire to have the provisions of the preceding paragraph applied to, shall submit applications to the chief of the tax office covering the place of payment, stating reasons therefore.
In special circumstances, the chief of tax office may apply the provisions of Article 14 or may not apply the provisions of Article 13 of the Law concerning the deduction to the computation of the estimated amount of income tax as provided for under item 1 of par. 1, Art. 21 of the Law, even if no mention was made about dependents referred to under Art. 21, par. 1, item 4 of the Law in April provisional return, July provisional return or October provisional return. Section 2. Final Return
Article 23.
A final return shall be submitted to the chief of tax office concerned stating therein matters referred to under each item of par. 1, Art. 26 of the Law and those shown hereunder: 1.
Name, and domicile or residence of taxpayer; 2.
Names of persons entitled to the deduction of Art. 12, par. 6 and Art. 14, par. 3 of the Law, amount of the deduction and other necessary matters on the deduction; 3.
Matters relating to the exemption of the income tax referred to under Art. 20 of the Law; 4.
Other matters to be referred to. Provisions of par. 2, Art. 19 shall apply to the case where the return on the matter referred to under item 3 of the preceding paragraph is to be filed.
Penalty tax provided under par. 1, Art. 55 of the Law shall be excluded, in accordance with the provisions of item 6 of par. 1, Art. 26 of the Law, from the amount of income tax referred to under the same item. Article 25.
In case an individual liable to file a final return has died without filing the return, the heir shall file the return with the chief of the tax office covering the place of payment of the tax of the decedent within 4 months of the day following the day on which be recognized the commencement of the inheritance. In the return to be filed in accordance with the provisions of the preceding paragraph, matters shown hereunder shall be stated:
1.
Names, and domiciles or residences of the heir; 2.
The ratio of the benefits each heir is entitled to the total value of estate, in case there are more than one heir; 3.
The unpaid amount in the amount of income tax to be paid by the decedent; 4.
The unpaid amount referred to in the preceding item as allocated in proportion of the ratio referred to under item 2 above. In case there are more than one heir, the return of par. 1 shall be filed with joint signatures of heirs; provided, this shall not hinder each heir from filing his own return only if names of other heirs are filed therein.
In case if there are more than one heir, an heir has filed the return in accordance with the proviso of the preceding paragraph, he shall immediately notify other heirs of the summary of the return.
Provisions of Art. 21 shall apply to the extension of the filing date of the final return. Provisions of Art. 22 shall apply in respect to the case when the final return failed to mention about the dependents as referred to under Art. 26, par. 1, item 4 of the Law.
In a revised final return, changes in the matters referred to under each item of par. 1, Art. 26 of the Law, each item of par. 1, Art. 23 and each item of par. 2, Art. 25 of this Regulations shall be stated, and the return shall be filed with the chief of the tax office covering the place of payment. Article 28.
In case an individual liable to file a revised final return was dead without filing the return, the provisions of Art. 25 shall apply thereto (excluding the provision relative to the filing date). In case an individual entitled to apply for the correction by virtue of Art. 27, par. 2 of the Law was dead without filing the application, the provisions of Art. 25 shall apply thereto.
In case the income of the deceased, who died in the middle of a year, accrued to him during January 1st of the year and the date of death (or, in case he had co-living family at the time of death, the said income plus the estimated total income of members of the family) exceeds 4,800 yen, the heir to the decedent shall file a return on the income tax of the decedent, stating therein similar matters as prescribed under each item of par. 1 of Art. 26 of the Law, each item of par. 1 of Art. 23 and of par. 2 of Art. 25 of this Regulations, with the chief of the tax office covering the place of tax payment of the decedent, within 4 months of the day following the day on which he recognized the commencement of the inheritance. The income tax liabilities to be stated in the return of the preceding paragraph shall be the amount computed, on the basis of the income of the decedent accrued to him during the period from January 1st of the year to the time of death, (or, in case members of the co-living family have incomes, on the basis of the total of the decedent's income plus incomes of the members in the year estimated as of the date of the death), in accordance with Arts. 12-14 of the Law; or, shall be the amount prescribed under Art. 15 of the Law, in case either of the decedent's income or the income totaled with those of members is not over 50,000 yen (if the tax is to be computed by adding together incomes of members, the tax liabilities of the decedent shall be computed by multiplying the tax figured out in accordance with Art. 15 of the Law by the ratio of his income to the total income).
Provisions of Art. 28 of the Law and Art. 19, par. 2, Art. 21, Art. 25, pars, 3 and 4 and Art. 26, par. 2 shall apply to the case where the return is to be filed pursuant to par. 1.
An individual coming under Art. 1, par. 1 or 2, item 1 of the Law shall, if his income in the year (or, the total income of his co-living family members, if any) estimated as of the time at which he ceases to have domicile and residence in the enforcement area of the Law, exceeds 4,800 yen, file a return with the chief of the competent tax office, in accordance with Art. 29. par. 2 of the Law, stating therein matters similar to those prescribed under each item of par. 1 of Art. 26 of the Law and each item of par. 1 of Art. 23 of this Regulations. Provisions of par. 2 of the preceding Article shall apply in respect to the case of the preceding paragraph; in this case, "the income of the decedent accrued to him during the period from January 1st of the year to the time of death" shall read as "the income in the year or estimation thereof".
In case an individual coming under Art. 1, par. 1 of the Law has ceased, in the middle of a year, to have domicile and residence within the enforcement area of the Law, the provisions of Art. 14 of the Law, concerning the deduction shall apply as of the actual situation at the time he ceased to have domicile and residence.
The provisions of Art. 28 of the Law, Art. 19, par. 2 and Art. 26, par. 2 of this Regulations shall apply to the case where a return is to be filed pursuant to par. 1.
Art. 27 of the Law and Arts. 27 and 28 of this Regulations shall apply to the case where a return has been filed pursuant to Art. 29, par. 1 or 2 of the Law; in this case necessary matters may be provided for by the Minister of Finance. CHAPTER IV. THE PAYMENT
Section 1. Self-Assessment
Article 32.
In case a taxpayer is going to pay income tax a in accordance with the provisions of Arts. 30-34 of the Law, he shall pay it into the Bank of Japan, its branch office or its agency attaching a payment note the form of which will be fixed by the Minister of Finance. Article 33.
An heir liable to file a final return in accordance with the provisions of par. 4, Art. 26 of the Law, shall pay the amount of tax to be paid by the decedent (in case there are more than one heir, the tax liabilities each heir is to pay shall be proportionate to the ratio of benefits each is entitled to the total estate). The income tax referred to under the preceding paragraph shall be paid by the filing date prescribed under Art. 25, par. 1.
Provisions of par. 1 shall apply to the case where the final return referred to under Art. 26, par. 4 of the Law is to be revised in the form of the revised final return.
In case 80% or more of the income of a taxpayer is estimated to come from agriculture and 70% or more of the income from agriculture is estimated to come on or after October 1st according to the estimation made as of April 1st, July 1st or October 1st, the taxpayer need not advance his tax in instalment on April 1st, July 1st or October 1st, notwithstanding the provision of Art. 30 of the Law or Art. 31 of the Law. The provision of the preceding paragraph shall not apply unless the taxpayer so states and so applies in the return to be filed between 1st-30th April, 1st-31st July or 1st-31st October to the chief of the tax office covering the place of payment of his tax.
The provision of par. 1 shall not apply, in case the chief of the tax office deems the statement in the return questionable; in this case the chief of the tax office shall so notify to the taxpayer.
In case a taxpayer who is favored of the treatment of par. 1 has later become, as of July 1st or October 1st, not entitled to the treatment, he shall pay his instalments to be paid on quarter day or days coming after the date on which he so found; in this case, he shall file his return between 1st-31st July or 1st-31st October stating therein the fact he ceased to be entitled to the treatment, with the chief of the tax office covering the place of payment of his tax.
In case the taxpayer failed to file his return referred to under the latter half of the preceding paragraph, the chief of the tax office shall determine that the treatment of par. 1 will not be given to him in respect to the instalments to be paid on or after July 1st or October 1st, and inform the taxpayer of the determination.
In the case referred to under par. 3 or 5, an amount of the income tax to be designated by the chief of the tax office shall be paid through the date he appoints, notwithstanding Art. 30 or 31 of the Law.
The income tax prescribed under par. 1 to be paid by the taxpayer subject to par. 1, shall be paid on the fourth quarter day.
In case there is an extension of the filing date by virtue of the provisions of Art. 24 of the Law (including the case where the same provisions apply in par. 5 of Art. 26 of the Law), it shall be deemed that the payment date of the income tax which is due during the period thus extended, has been extended till the new filing date, by virtue of the provisions of par. 2 of Art. 33 of the Law. Article 36.
In case a person has filed his April, July or October provisional return or July or October revised provisional return or the final return after the filing date or has filed the return referred to under Art. 29, par. 1 or 2 of the Law after the filing date thereof, he shall pay the tax in deficit simultaneously with the filing of the return in accordance with the provisions of Art. 33, par. 3 of the Law. Article 37.
In case the return referred to under Art. 29, par. 1 of the Law has been filed, the heir shall pay the income tax due on the descendant referred to under Art. 29, par. 2 of the Law (excluding the income tax already paid by the decedent) by the filing date of the return. In case there are more than one heir, the income tax each heir is to pay pursuant to the preceding paragraph shall be proportionate to the ratio of benefits each is entitled to, to the total value of eastte.
Each heir is jointly liable for the tax other is to pay pursuant to par. 1.
A person who filed his return pursuant to Art. 29. par. 2 of the Law, shall pay all of his tax by the date on which he ceases to have domicile and residence within the enforcement area of the Law. Article 39.
In case there is an overpayment in the tax paid on the basis of July or October revised provisional return, the excess shall be refunded only after the filing date of the final return elapsed; in this case, the excess (excluding the amount appropriated in accordance with Arts. 4-5 of the National Tax Collection Law to the tax which should have been paid by the payment date which came prior to the filing date of the revised provisional return) shall be appropriated to the instalment to be paid after 2nd or 3rd quarter period. In case still there is an overpayment after the appropriation of the preceding paragraph, the excess, as well as an overpayment found in the 4th instalment, may be credited against the instalment to be paid on the income of the following year; if so applied, the taxpayer shall make a statement to that effect in the provisional return on the income of the following year.
Article 40.
Those who have withhold the income tax, in accordance with the provisions of par. 1 of Art. 37 of the Law, par. 1 of Art. 38 of the Law, or of Arts. 40-42 of the Law, are required to pay it into the head office, a branch office or an agency of the Bank of Japan, accompanied by the note of payment and the sheet of account, made out in the form as fixed by the Minister of Finance. Article 41.
In the case as provided for in par. 2. Art. 37 of the Law, the amount withheld according to the provisions of par. 1 of the same Article shall be deemed the amount of the income tax payable by the person during the year. In the case of the preceding paragraph, an amount equivalent to the amount of the income tax as provided for in item 6, par. 1, Art. 26 of the Law, paid in or payable by a person coming under the provisions of par. 1, or to the amount of the income tax withheld or to be withheld pursuant to the provisions of par. 1, Art. 38 of the Law, Art. 40 or 42 of the Law shall be refunded.
The provisions of par. 2, Art. 39 of the Regulations and Art. 40 of the Law shall apply in regard to the amount to be refunded according to the provisions of the preceding paragraph.
A person as provided for in par. 1. Art. 38 of the Law to be excluded from the application of said paragraph shall be an individual who employs not more than two domestics at all times. Article 43.
The monthly amount or weekly amount of pay as provided for in item 2 or 4 of par. 1, Art. 38 of the Law shall be the amount obtained by dividing the amount of pay by the number of months or weeks as integrals. The daily amount of pay as provided for in item 3 or 4, par. 1, Art. 38 of the Law shall be the amount obtained by dividing the amount paid by the number of days on which the calculation of the pay is based. In this case a fraction under one day shall be counted as one day.
A person who, within the enforcement area of the present Law, makes the payment of earned incomes to five or more workers at all times, and who is designated by the chief of the tax office, may, in cases where the payment to the workers is made at day, rates withhold the tax set forth in Daily Basis Table under the annexed table No. 2 for a taxpayer with two dependents, notwithstanding Art. 38, par. 1, item 1 of the Law; provided, this shall not hold good in respect to the withholding of the tax to be made by the payer of pays through whom the taxpayer has filed the return of Art. 39 of the Law stating therein the number of his dependents as more than three. Article 45.
In the report to be filed pursuant to the provisions of par. 1, Art. 39 of the Law, the following matters shall be described, and the return shall be filed to the chief of the tax office concerned through the payer of the pay (or the main pay): 1.
The name and domicile or residence of the person liable to make the report; 2.
The name or the title of the person who makes pay; 3.
The name and the date of birth of the dependent, his or her relation to the reporter and a statement as to his disablement; 4.
Other matters for referrcnce. The report to be filed in accordance with the provisions of par. 2, Art. 39 of the Law shall have provided with a statement in respect to any change taken place in the matters as provided for in 1, 3, and 4 of the preceding paragraph, and be filed with the chief of the tax office concerned through the payer of the pay (or the main pay).
In case of an overpayment as referred to under the provisions of Art. 40 of the Law is found in the tax to be withheld pursuant to Art. 38, par. 1 of the Law, the payer shall appropriate the excess income to the income tax to be withheld at the time of making the last pay for the year. In case the excess as referred to in the preceding paragraph is not appropriated at the time of making the last pay for the year or in case there is a surplus left even after the appropriation is made pursuant to the provisions of the preceding paragraph, the amount in excess shall be appropriated to the income tax to be withheld at the time of making the pay in the ensuing year.
If there is no tax collectable in this ensuing year, the amount in excess shall be refunded.
Matters necessary for the appropriation or refundment shall be provided for by the Minister of Finance.
The payer of the pay referred to under Art. 40 of the Law shall, in case there is a deficit prescribed under, Art. 40 of the Law in the income tax to be withheld pursuant to Art. 38, par. 1 of the Law, withheld the amount equal to the deficit from the last pay in the year or from the first pay in the ensuing year; the tax thus withheld shall be paid into the Government by 10th of the month next to the month in which the tax is withheld.
CHAPTER V. REINVESTIGATION
Article 47. A person who desires to apply for reinvestigation in accordance with the provisions of par. 1, Art. 48 of the Law or par. 1, Art. 49 of the Law (including same paragraph as applied under par. 2 of same Article) shall file an application for reinvestigation, stating therein the reason therefore in detail, together with a documentary evidence, with the Director of the Local Financial Bureau having jurisdiction over the place of paying taxes through the chief of the tax office who has corrected or decided upon the estimated income, provisional tax, income, income tax or the amount referred to under Art. 26, par. 1, items 5-7 of the Law or who has determined the penalty tax referred to under Art. 57, par. 1 of the Law or who has made the judgement referred to under Art. 27, par. 3 of the Law.
In the case of the preceding paragraph when the application for reinvestigation is received by the chief of the tax office, the application shall be regarded as being filed with the Director of the Local Financial Bureau having jurisdiction over the place of paying taxes, in accordance with the provisions of the preceding paragraph.
Article 48. When the application for reinvestigation as provided for in paragraph 1 of the preceding Article is filed, the chief of the Local Financial Bureau may ask the applicant questions in regard to matters necessary for a decision to be given after reinvestigation or ask him to submit a statement of accounts or other documents deemed necessary for a decision to be given after reinvestigation.
CHAPTER VI. MISCELLANEOUS PROVISIONS
Article 49. Public notice as provided for in par. 5, Art. 44 of the Law (including cases where same paragraph is applied in par. 6, Art. 46 and par. 3, Art. 57 of the Law) shall be given by publicizing in the Official Gazette the name of the taxpayer and his estimated income, or provisional tax (in the case of par. 6, Art. 46 of the Law, the name of the taxpayer and the amount of income, the amount of income tax or the amount as provided for in items 5-7 par. 1, Art. 26 of the Law, and in the case of par. 3, Art. 57 of the Law, the name of the taxpayer, the amount of tax in deficit).
Article 50. In case it is deemed difficult for the taxpayer to pay the tax on account of a conspicuous loss of his means through natural calamities or other causes, the chief of the tax office may, upon receipt of an application from the taxpayer, abate or exempt his income tax.
In case the taxpayer desires to have income tax abated or exempted pursuant to the provisions of the preceding paragraph, he shall file an application therefore with the chief of the tax office having jurisdiction over the place of paying taxes with a statement of causes thereof.
When the chief of the tax office has taken necessary steps in regard to the abatement or exemption of the income tax pursuant to par. 1, he shall notify the taxpayer to that effect.
Article 51. A person who desires to inspect an April, July or October provisional return, a July or October revised provisional return, the final return, the revised final return or the return prescribed under Art. 29, par. 1 or 2 of the Law as filed by a taxpayer or to inspect papers relating to the correction or determination referred to under Art. 44, pars. 1-3 of the Law or Art. 46, pars. 1-4 of the Law, shall, as provided for by the Minister of Finance, pay the charge and may so apply to the chief of the tax office covering the place of payment of the taxpayer's tax.
Article 52. A person who desires to give an information as provided for in par. 1, Art. 54 of the Law, shall do so to the Minister of Finance or to the Director of Local Financial Bureaus by stating the following matters:
1. The name and domicile or residence of the informer;
2. A detailed statement of the suspicion that a person who is considered liable to pay the tax has failed to file a final return or revised final return, or the suspicion that there is an omission in the amount of income or in the amount of income tax or the amount as provided for in item 7, par. 1, Art. 26 of the Law (in case the amount as provided for in the said item represents an excess, the suspicion that said amount is deemed to be excessive), as declared in the return;
3. The name and domicile or residence of the person who is deemed liable to pay the tax as referred to the preceding item or of the taxpayer.
Article 53. The amount of reward to be paid to a person who has given an information as provided for in par. 1, Art. 54 of the Law, shall be the amount corresponding to not more than 10% of the amount of the tax recovered by a correction or determination enabled by the information (excluding the amount of penalty tax to be added in conformity to the provisions of par. 1 or 2, Art. 55 of the Law or to be imposed in conformity to the provisions of par. 1, Art. 57 of the Law) and shall be determined by the Director of the Local Financial Bureau according to the extent the information has contributed to the correction or determination made.
The reward as provided for in par. 1, Art. 54 of the Law shall be paid by the Director of the Local Financial Bureau having jurisdiction over the place of payment of the taxpayers' tax.
Article 54. The amount of penalty tax to be added to the income tax in accordance with the provisions of Art. 55, par. 1 of the Law shall be computed by multiplying the amount of income tax shown hereunder by the rate of three sen per diem per one hundred yen, according to the number of days specified hereunder:
1. As to the increment of the income tax increased by a revision as provided for in par. 1, Art. 27 of the Law, the number of days elapsed since the day following the filing date of the final return to the day the revised final return is filed, inclusive;
2. As to income tax payable pursuant to the provisions of par. 3, Art. 33 of the Law, the number of days elapsed since the day following the time-limit for the payment of tax as provided for in Art. 30 or 31 of the Law or Art, 33, par. 2, Art. 35, Art. 37, par. 1 or Art. 38 of this Regulations to the day the return as provided for in par. 3, Art. 33 of the Law is filed, inclusive;
3. As to the increment of the income tax increased by a correction made pursuant to the provisions of par. 1 or par. 3, Article 44 of the Law (limited to the tax to be paid pursuant to Art. 45, par. 3 of the Law), the number of days elapsed since the day following the time-limit for payment as provided for in Art. 30 or 31 of the Law to the date of payment as provided for in par. 3, Art. 45 of the Law, inclusive;
4. As to income tax decided upon pursuant to the provisions of par. 2, Art. 44 of the Law (limited to the tax to be paid pursuant to Art. 45, par. 3 of the Law), the number of days elapsed since the day following the time-limit for payment as provided for in Art. 30 of the Law to the date of payment as provided for in par. 3, Art. 45 of the Law, inclusive.
In case a taxpayer is to pay his income tax pursuant to Art. 34, par. 6, he shall, in respect to the income tax so designate by the chief of the tax office concerned, pay an amount additional to the tax, to be computed at the rate of 3 sen per diem per 100 yen of principal, according to the number of days elapsed since the date designated by the chief of the tax office to the time-limit of payment (or to the date on which the payment is made if it is made before the time-limit).
The chief of the tax office may, when considered as an inevitable outcome of circumstances, abate or exempt the tax to be added pursuant to the preceding two paragraphs, as provided for by the Minister of Finance.
Article 55. The amount of tax to be added by virtue of Art. 55, par. 1 of the Law as applied under par. 2 of same Article, to the income tax corresponding to the amount of tax in deficit as provided for in Art. 47 of the Law, shall be the amount obtained by multiplying the said amount of tax by three sen per diem per one hundred yen, according to the number of days elapsed since the day following the filing date of the final return to the time-limit for payment as provided for in the same Article.
The provisions of par. 3 of the preceding Article shall apply to the case of the preceding paragraph.
Article 56. The amount of penalty tax to be collected pursuant to Art. 56 of the Law in addition to the income tax corresponding to the amount of taxes collectable pursuant to the provisions of par. 1 of Art. 43 of the Law, shall be the amount obtained by multiplying the amount of tax in question by three sen per dies per one hundred yen, according to the number of days elapsed since the day following the date of payment as provided for in par. 1, Art. 37, par. 1, Art. 38 or Arts. 40 to 42, of the Law, to the date of payment designated by the chief of the tax office in accordance with par. 1, Art. 43 of the Law.
Article 57. The amount of penalty tax to be collected pursuant to Art. 57, par. 1 of the Law shall be computed by applying 5% for each month elapsed to the amount shown hereunder, according to the number of days elapsed since the day following the filing date of a final return to the day on which the final return or revised final return is actually filed or to the day on which the correction or determination prescribed under Art. 46, par. 5 of the Law is made (if the amount thus computed proved more than 50% of the amount shown hereunder it shall be 50% of the amount shown hereunder):
1. In respect to the case referred to under Art. 57, par. 1, item 1 of the Law, the amount prescribed under Art. 26, par. 1 item 7 of the Law;
2. In respect to the case referred to under Art. 57, par. 1, item 2 of the Law, the increment arising out of the revised final return;
3. In respect to the case referred to under Art. 57, par. 1, item 3 of the Law, the tax in deficit as referred to under Art. 47 of the Law.
Article 58. The chief of the tax office may consult the organizations, formed by persons engaged in the following businesses and having the places of business within his jurisdiction, on estimated amount and ranking of incomes of the members thereof, and on other necessary matters:
1. Business as designated by the Minister of Finance;
2. Agricultural, forestry and aquatic industries and others similar thereto;
3. Doctor's and lawer's business and others similar thereto.
The organizations as provided for in the preceding paragraph shall, when being put questions pursuant to the same paragraph, prepare a report on matters consulted and send in the same to the chief of the competent tax office by the time-limit set by him.
Article 59. In case juridical persons who are not subject to the income tax have acquired or lost uninscribed public bonds, corporate debentures or shares, they shall notify the party handling the payment of their interests or dividends of the names, par values, marks and numbers of such bonds, debentures or shares.
Article 60. A taxpayer who has his domicile within the enforcement area of the Law and who desires to make his residence as the place of paying his tax, shall so apply to the chiefs of the tax offices covering his domicile and residence.
A taxpayer who has no domicile nor residence within the enforcement area of the Law shall designate the place of paying his tax and so notify to the chief of the tax office covering the place of payment.
A taxpayer when changed the place of paying his tax, shall so notify to the chiefs of the tax offices covering old and new places of tax payment, excepting the case provided for under par. 1.
Article 61. A taxpayer, upon designating his tax payment agent, shall notify the chief of the tax office covering the place paying his tax of the name and domicile or residence of the agent.
Article 62. The definition provided for under Art. 30 of the Enforcement Regulations of the Corporation Tax Law shall apply to the corporation which has such special financial connection as is provided for in Art. 67, par. 1 of the Law.
Article 63. A taxation official, in making inspections or investigations of books, documents or other matters, according to the provisions of Art. 63 of the Law shall carry the inspection certificate which is to be designated by the Minister of Finance.
Article 64. "The Government" referred to under Art. 65, par. 2, the latter half, of the Law shall read "the Minister of Finance," "the Government" referred to under Art. 50, par. 1 of the Law shall read "the Director of Local Financial Bureau covering the place of tax payment" and "the Government" referred to under Art. 58, and Arts. 60-62, of the Law, shall read "the chief of the tax office covering the place where the income from interests and other incomes are paid."
Besides the preceding paragraph, the Government referred to under the Law shall mean the chief of the tax office covering the place of payment, unless otherwise specified under the present Imperial Ordinance.
Supplementary Provisions:
Article 1. The present Ordinance shall come into force as from April 1, 1947.
Article 2. The areas to be excluded from the enforcement of the Law according to the provisions of Art. 2 of the Supplementary Provisions of the Law shall be as follows:
1. Shumushu-gun, Shiretoko-gun, Uruppu-gun, Kunajiri-gun, Shana-gun, Etoro-gun, Shintori-gun, Shikitan-gun and Suisho-jima, Yutomari-jima, Shihatsu-jima, Taraku-jima and Akiyu-tomari-jima, of Hamai-mura, Hanasaki-gun, under the jurisdiction of Nemuro Branch Office of Hokkaido Prefectural Government;
2. Ogasawara Islands (Boning Islands), Tokyo-to;
3. Five Villages and Take-shima, under the jurisdiction of Oki Branch Office, Shimane Prefecture;
4. Oshima-gun, Kagoshima Prefecture (excluding Nakakuro-shima, Take-shima and Iwo-jima of Jushima-mura);
Article 3. This Imperial Ordinance shall apply to the Income Taxes for 1947 and subsequent fiscal years. But regarding the income tax on the capital gains made through the transfer of shares and assets as provided for in the provisions of Art. 7, it shall apply only to those made through the transfer taking place on and after April 1, 1947.
Article 4. The interests to which Art. 5, par. 1, Supplementary Provisions of the Law may apply by virtue of par. 1 of said Article, shall be such interests as are shown hereunder:
1. Interests on deposits set with Salt Manufactures Cooperative, Industrial Cooperative Commercial Cooperative, Control Cooperative, Trade Cooperative, Fishing Cooperative, Fishing Association, Manufactures' Association and Automobile Transportation Cooperative;
2. Interests on deposits set with Federation of Salt Manufacturers' Cooperatives, Federation of Industrial Cooperatives, Federation of Commercial Cooperatives, Federation of Trade Cooperatives, Federation of Automobile Transportation Cooperatives, the Central Bank of Agriculture and Forestry and the Central Bank of Commerce and Industry:
3. Interests on deposits set with the Pension Bank and the People's Bank;
4. Interests on deposits set with Mutual Financing Corporations.
The profits from "Joint-operation-trust" as referred to in Art. 5, par. 1 of the Supplementary Provisions of the Law shall be limited to those arising out of the trust whose operations of trust property are limited to deposits, loans or purchases of bonds and debentures.
Article 5. The person who desires to pay income tax on the incomes from interests or profits as referred to in the provisions of Art. 5, par. 1 of the Supplementary Provisions of the Law at the time of receiving such interests or profits shall so apply on receiving the interests or profits.
In case the payer of the interests or profits as provided for in Art. 5, par. 1 of the Supplementary Provisions of the Law has collected the income tax on said interests or profits, he shall pay the collected tax to the Head Office, branches or agencies of the Bank of Japan with payment slips and statement of accounts the forms of which are to be designated by the Minister of Finance.
Provisions of Art. 56 after the present revision shall apply to the penalty tax referred to under Art. 56, of the Law which applies in Art. 5, par. 3. of Supplementary Provisions of the Law.
Article 6. The classified income tax on the Class A income from dividends and interests to be deducted from the amount of income tax on the profits from joint-operation-trust, in accordance with the provisions of Art. 6, par. 1 of the Supplementary Provisions of the Law, shall be deducted by the trust companies at the time when income tax on the profits from the joint-operation-trust is to be collected.
Article 7. In case an heir has recognized, regarding the decedent who died on or after January 1st, 1947 but before the enforcement of this Imperial Ordinance, the commencement of inheritance taking place before the enforcement of this Imperial Ordinance, the return to be filed pursuant to Art. 25, par. 1 or Art. 29, par. 1 shall be filed within four months of the enforcement date of this Imperial Ordinance, notwithstanding those provisions.
Article 8. A corporation which employs and pays daily wages to, at the time this Imperial Ordinance is put in force, more than all time laborers, within the enforcement area of the Law, or an individual who is designated, at the time this Imperial Ordinance is put in force, by the chief of a tax office pursuant to Art. 4-(2), par. 2 of the old Regulations, shall be deemed a person designated by the chief of a tax office pursuant to Art. 44 of this Regulations.
Article 9. The return to be filed pursuant to Art. 9, par. 2 of the Supplementary Provisions of the Law shall be filed with the chief of the tax office covering the place of payment of the allowances (or, if there are more than one place, the place of payment of the main allowances).
Article 10. Only for the year 1947, the April provisional return shall state matters prescribed under Art. 19, par. 1 as of June 1st, and be filed 30th, June.
Only for the year 1947, the July provisional return shall state matters prescribed under Art. 17, par. 1, as of August 1st and be filed on 1st-31st, August.
Only for the year 1947, the July revised provisional return shall state changes in matters prescribed under Art. 19, par. 1, as of August 1st, and be filed on 1st-31st, August.
Only for the year 1947, the first quarter period shall run from 1st to 30th June and second quarter period shall run from 1st to 31st August.
Only for the year 1947, "April 1st" referred to under Art. 34 shall read "June 1st," "1st-30th, April" shall read "1st-30th June," "July 1st" shall read "August 1st" and "1st-31st, July" shall read "1st-31st, August."
Article 11. A part of the Enforcement Regulations of the Capital Levy Law shall be amended as follows:
The second paragraph of Supplementary Provisions shall be amended as follows:
The amount to be deducted from the amount of income realized through the sale or payment in kind of standing trees according to the provisions of paragraph 3 of the Supplementary Provisions of the Law shall be a sum total of the amount of necessary expenses and the amount arrived by multiplying the amount of capital levy (except the additional amount of tax to be added or collected according to the provisions of Article 65 and Article 66, 5, paragraph 1, of the Law) by the percentage of the said standing trees sold or paid in kind as in the total amount of his assets on the date of investigation; provided the deduction shall not exceed the amount of income realized through the sale or payment in kind of standing trees concerned.
Article 12. The assessment of the increased income tax shall still be in accordance with the provisions of Articles 2 and 3, Article 10, Article 11, Article 12-3, Article 12-4, Article 34, paragraph 2, Article 43, paragraph 2, Article 45, Articles 82 through 85, Article 99, Article 100, Articles 102 through 104-2 of the Enforcement Regulations of the old Income Tax Law and paragraph 2 of the Supplementary Provisions of the Enforcement Regulations of the Capital Levy Law before the present revision.
Article 13. The Imperial Ordinance No. 42, 1947 (Ordinance on the exemption, abatement and postponement of collection of taxes upon the taxpayers damaged in 1946) shall be partly amended as follows:
In Art. 4, par. 1, "Classified income tax on Class A earned income and Class C business income, to be paid through June, 1947" shall be amended as "Income tax to be withheld by June, 1947 in accordance with Art. 38, par. 1 or Art. 42 of the Income Tax Law" and "Classified income tax" as "the income tax concerned"; also the following paragraph shall be appended to Art. 4:
In the case where the provisions of the preceding two paragraphs are to apply, the income tax withheld or to be withheld pursuant to Art. 26, par, 1, item 5 of the Income Tax Law shall be deemed to cover the tax abated or exempted by virtue of the preceding two paragraphs, for purposes of the application of the Income Tax Law.