Article 34-(8). In case a second company has received investment of assets from a special accounting joint-stock company which has a loss in its new account, if the amount of assets which has been transferred pursuant to the provisions of Paragraph 2 of Article 10 is less than the amount of liabilities it has assumed in accordance with the provisions of Paragraph 1 of the same Article, such second company shall enter the amount of that deficiency on the assets side of its balance sheet as a second company special account. A second company which has established a second company special account pursuant to the provisions of the preceding paragraph shall, whenever there is a profit at the time of each settlement term, amortize the second company special account in accordance with the provisions of a separate ordinance.

Article 34-(9). In case a special accounting joint-stock company has made a second company succeed to its liabilities which are in excess of assets to be transferred in accordance with the provisions of Paragraph 2 of Article 10, the profits of the special accounting joint-stock company resulting from the succession of such liabilities shall not be included as a profit in the calculation of normal income for each business year under the Corporate Tax Law and income for each business year in case business tax is imposed under the Local Tax Law. The amount of amortization of the second company special account as provided for in Paragraph 2 of the preceding Article shall, for the purpose of calculation of normal income for each business year under the corporate Tax Law and income for each business year in case business tax is imposed under the Local Tax Law, be included as a loss within the limit of an amount determined by separate ordinance out of the amount corresponding to the loss which has arisen during the business year of the special accounting joint-stock company which has invested assets in such second company and which business year has started within one year prior to the date when the business year in which such amortization has been made has started, and which also has started within one year prior to the date of establishment of such a second company. In case a special accounting joint-stock company has invested its assets in a second company, if a second company special account is established in such a second company, the provisions of Paragraph 4 of Article 9 of the Corporate Tax Law and rules concerning business tax in Local Tax Law corresponding to the same provisions shall not apply with respect to an amount corresponding to an amount as provided for in the separate ordinance referred to in the preceding paragraph (in case there are two (2) or more second companies, the aggregate) out of the loss which has arisen during the business year of such special accounting joint-stock company which has started within one (1) year prior to the date of establishment of such a second company.