(General Provisions)
Article 29. The accounting of the Corporation shall be in accordance with the provisions of this Chapter.
(Accounting Principle)
Article 30. The Corporation shall account for the increase, decrease or any other change in its property on an accrual basis for the purpose of making clear the results of management and financial status of its enterprise.
(Business Year)
Article 31. The business year of the Corporation shall begin on April 1 of each year and end on March 31 of the next year.
(Assets)
Article 32. The assets of the Corporation shall be classified into fixed assets, inventories, current assets, deferred charges and intangible assets.
2 Itemized classification, standard for evaluation, extent of depreciable assets and method of depreciation, of assets provided for in the preceding paragraph, shall be determined by the President with the approval of the Minister of Finance.
(Capital and Liabilities)
Article 33. The value of the assets provided for in the preceding Article shall be the operational capital of the Corporation, and shall be classified into capital, accumulated reserves, reserve accounts, long term liabilities, current liabilities, and deferred income and the itemized classification of it shall be determined by the President with the approval of the Minister of Finance.
(Budget)
Article 34. The Corporation must prepare a budget for each business year and present it to the Minister of Finance by such date as he may prescribe attached with an execution plan thereof, operational program for the year, fund program, and any other documents concerning items to serve as a reference, and the preliminary balance sheet and profit and loss statement for the preceding year.
2 When the budget is presented in accordance with the provision of the preceding paragraph the Minister of Finance must review it and make necessary adjustments and obtain Cabinet decision.
3 The Cabinet must, when decision has been made in accordance with the provision of the preceding paragraph, present the budget to the Diet, simultaneously with the national budget.
4 Budget as provided for in the preceding paragraph, shall be attached with documents prescribed in paragraph 1.
5 The form and contents of the budget shall be determined by a Cabinet Order and procedures for preparation and presentation thereof, by the Minister of Finance.
(Incurring of Obligations)
Article 35. In case of conducting actions to incur any obligations other than those based upon law or those within the scope of the amount of expenditure budget, the Corporation must obtain prior approval of the Diet in the form of budget.
2 Besides those provided for in the preceding paragraph, the Corporation may, in case of such urgent necessity as the calamity damage restoration, etc., incur obligations within the scope not exceeding the amount approved by the Diet every business year.
(Reserve Fund)
Article 36. The Corporation may include a reserve fund in its budget to cover shortage of expenditure budget caused by increased sales of monopoly goods and other unforeseeable reasons.
(Approval of Budget)
Article 37. As for the approval by the Diet for the budget, the example of the approval of the national budget shall be followed.
(Notification of Budget)
Article 38. In case the approval for the budget of the Corporation is given by the Diet, the Government shall notify it to the Corporation without delay.
2 The Corporation shall not enforce its budget before it has been notified in accordance with the provision of the preceding paragraph.
3 In case the Government notifies it to the Corporation in accordance with paragraph 1, it must be notified to that effect to the Board of Audit without delay.
(Supplementary Budget)
Article 39. Only in case it is necessary on account of unavoidable causes arising after the preparation of the budget, the Corporation may prepare a supplementary budget, and submit it to the Minister of Finance, attached with execution plan thereof, operational program, fund program, and any other documents concerning items to serve as a reference.
2 The provisions of paragraphs 2 to 5 inclusive of Article 34, and of the preceding two Articles shall apply mutatis mutandisto the supplementary budget in accordance with the preceding paragraph.
(Amendment of Budget)
Article 40. In case it is necessary to amend the approved budget other than the cases provided for in paragraph 1 of the preceding Article, according to the reason caused after the approval of the budget, the Corporation may amend and present it to the Minister of Finance attached with the execution plan thereof, operational program, fund program, and any other documents concerning items to serve as a reference.
2 The provisions of paragraphs 2 to 5 inclusive of Article 34, and of Articles 37 and 38, shall apply mutatis mutandis to the amendment of the budget provided for in the preceding paragraph.
(Interim Budget)
Article 41. The Corporation may, when necessary, prepare an interim budget covering a certain period of one business year, and present it to the Minister of Finance with the execution plan thereof, fund program and any other documents concerning items to serve as a reference.
2 The provisions of paragraphs 2 to 5 inclusive of Article 34, and of Articles 37 and 38 shall apply mutatis mutandis to the interim budget provided for in the preceding paragraph.
3 The interim budget shall lose effect in case the budget for the business year concerned has been approved by the Diet, and any disbursements made or obligations incurred under the authority of the interim budget shall be regarded as having been made or incurred under the authority of the budget for the business year concerned.
(Execution of Budget)
Article 42. The execution of the budget of the Corporation shall comply with classifications prescribed in the execution plan presented to the Diet as its attachment.
Article 43. With respect to the expenditure budget, the Corporation shall not use it for purposes other than those specified therein.
Article 43-(2). With respect to the amount of expenditure specified in the budget, the Corporation may not divert funds to or from items without the approval of the Minister of Finance.
Article 43-(3). In case contracts and other acts causing disbursements have been made or incurred during the business year concerned and yet liability for payment therefor has not accrued within the same business year, the Corporation may carry forward and expend, out of the budget of expenditure, the amount of expense to the act, etc. in the following business year.
Article 43-(4). When reserve fund is to be used, or a part of the budget is to be carried forward for disbursement in the following business year, the Corporation must notify the Minister of Finance to that effect without delay.
2 Upon receipt of the notification in accordance with the preceding paragraph, the Minister of Finance must notify the Board of Audit to that effect without delay.
(Fund Program)
Article 43-(5). The Corporation must prepare a fund program for every quarter of a year based upon the budget approved by the Diet, and present it to the Minister of Finance. The same shall apply to the case where alterations thereof are made.
2 When the Minister of Finance recognizes that the fund program presented to him pursuant to the preceding paragraph cannot be put into effect taking consideration of treasury cash situation, he shall notify to the corporation the limit that is possible to enforce.
3 Upon receipt of the notification provided for in the preceding paragraph, the Corporation must amend its fund program on the basis of the notification.
(Report on Receipts and Disbursement, etc.)
Article 43-(6). The Corporation must report monthly to the Minister of Finance and the Board of Audit the amount of obligations incurred through contracts and other acts causing disbursements, and the amounts of receipts and disbursements.
(Settlement of Accounts)
Article 43-(7). The Corporation must complete the settlement of its accounts for each business year not later than July 31 of the following year.
Article 43-(8). The Corporation must prepare every business year an inventory, a balance sheet, and profit and loss statement, (hereinafter referred to as the "financial statements" ), and present them to the Minister of Finance for his approval within one month after the settlement of account is completed.
2 The Corporation must publish the financial statements without delay when approval of the Minister of Finance has been given in accordance with the provision of the preceding paragraph.
Article 43-(9). When settlement of accounts has been completed, the Corporation must prepare the settlement of accounts report for each business year according to classifications in the budget, and present it to the Minister of Finance without delay, attached with financial statements for the business year approved by the Minister of Finance in accordance with the provision of paragraph 1 of the preceding Article.
2 Upon receipt of the settlement of accounts report and the financial statements in accordance with the provisions of the preceding paragraph, the Minister of Finance must forward them to the Cabinet.
3 The form and contents of the settlement of accounts report provided for in paragraph 1 shall be determined by Cabinet Order.
Article 43-(10). Upon receipt of the settlement of accounts report and the financial statements in accordance with the provision of paragraph 2 of the preceding Article, the Cabinet must forward them to the Board of Audit not later than November 30 of the following business year.
2 The Cabinet must submit to the Diet the settlement of accounts report of the Corporation audited by the Board of Audit, attached with the financial statement, together with the settlement of accounts of the revenue and expenditure of the State.
(Division of Profit and Loss Accounting)
Article 43-(11). The profit and loss accounting of the Corporation shall be divided into three subaccounts of tobacco, salt and camphor, to make clear the profit and loss in each of the accounts.
(Subsidy for Price Differential, etc.)
Article 43-(12). In case sales price of monopoly goods in fixed at lower price than the cost of manufacture, sales, etc. thereof, in view of such policy considerations as price control, the Government may grant a subsidy to the Corporation to cover the difference.
(Payment of Profit)
Article 43-(13). The Corporation must pay to the Treasury not later than May 31 of the following year the amount obtained by deducting the amounts prescribed in the following items from the balance obtained by deducting the gross loss from the gross profit accrued at the settlement of accounts for each business year (hereinafter referred to as "monopoly payment" ):
(1) When the total value of fixed assets, intangible assets and inventories has increased during the business year concerned, the amount obtained by deducting from the amount of increasement the amount corresponding to the portion which has been used for the increase of fixed assets, intangible assets and inventories, out of the revenue originating from long-term borrowing newly borrowed during the business year concerned;
(2) When the Corporation has redeemed a long-term borrowing during the business year concerned, the amount obtained by deducting from the amount of redemption the amount equivalent to depreciation up to the business year concerned for that portion of the fixed assets and intangible assets which were acquired with or increased the value by the long-term borrowing that has been redeemed.
2 The Corporation shall accumulate the amounts provided for in item (1) and item (2) of the preceding paragraph as reserve fund.
3 The Minister of Finance may order a part of the monopoly payment prescribed in paragraph 1 to be paid on an estimate basis, during the business year concerned in accordance with the provisions of Cabinet Order.
(Borrowing Money)
Article 43-(14). The Corporation may make long-term and or short-term borrowings from the Government with the approval of the Minister of Finance.
2 The long-term and short-term borrowings prescribed in the preceding paragraph must be within the limit of the amount stipulated in the budget.
3 The short-term borrowing prescribed in paragraph 1 shall be redeemed within the business year concerned. In case, however, redemption is impossible due to shortage of available fund, refinancing may be allowed with the approval of the Minister of Finance to the extent of the amount of such inability.
4 The short-term borrowing refinanced in accordance with the proviso to the preceding paragraph must be redeemed within one year.
(Loan from the Government)
Article 43-(15). The Government may loan the fund for long-term and or short-term to the Corporation.
(Temporary Use of Treasury Surplus)
Article 43-(16). The Government may allow the Corporation to use Treasury surplus temporarily, only during the business year concerned instead of the short-term loan provided for in the preceding Article.
(Redemption Schedule)
Article 43-(17). The Corporation must prepare the redemption schedule every business year for the long-term borrowings, and obtain approval of the Minister of Finance.
(Handling of Cash pertaining to Operation)
Article 43-(18). The Corporation must deposit the cash pertaining to its operation with the Treasury. However, when a Bank of Japan branch or agent cannot be conveniently utilized, it may deposit the cash in Post-Offices or private banks, for the safekeeping of cash, within the limit provided for by Cabinet Order.
(Restriction on the Disposition of Property)
Article 43-(19). The Corporation must obtain approval of the Diet when the Corporation wants to transfer or exchange the manufacturing factories and such other important properties as correspond to them.
(Accounting Regulations)
Article 43-(20). The Corporation must establish the accounting regulations for its accounting other than those provided for by this Law and the Cabinet Order based thereon.
2 The accounting regulations prescribed in the preceding paragraph must be such as to contribute to the efficient management of business and proper execution of budget, in view of the public nature of the Corporation as a public enterprise.
3 When the Corporation establishes the accounting regulations prescribed in paragraph 1, the Corporation must obtain the approval of the Minister of Finance with respect to fundamental items. The same shall apply to alterations thereof.
4 When the Corporation has established the accounting regulations prescribed in paragraph 1, the Corporation must notify it to the Minister of Finance and the Board of Audit without delay.
(Pay Scale)
Article 43-(21). The Corporation must establish the pay scale with respect to the allowance for its officers and employees. In this case, the pay scale must not be such expenditures for one business year based thereon as exceed the amount allocated for allowance in the budget for the business year concerned which is approved by the Diet.
(Determination and Alteration of Monopoly Prices)
Article 43-(22). With respect to the determination and alteration of the prices of monopoly goods made by the Corporation, the provision of Article 3 of the Finance Law (Law No.34 of 1947) shall apply mutatis mutandis.
(Delegation of the Accounting of the National Government)
Article 43-(23). The Government may let the officers or employees of the Corporation manage the receipt and custody of the money and property paid or supplied in compliance with the noticed disposition pursuant to the provisions of the Anti-National Tax Evasion Law (Law No.67 of 1900), as applied mutatis mutandis to Article 79 paragraph 1 of the Tobacco Monopoly Law, Article 55 paragraph 1 of the Salt Monopoly Law, and Article 28 paragraph 1 of the Camphor Monopoly Law.
2 The Government must obtain prior consent of the President in case the Government wants to let officers or employees of the Corporation manage the business prescribed in the preceding paragraph.
3 For the officers or employees of the Corporation who manage the business provided for in paragraph 1, the regulations concerning the managing of the business concerned, out of the laws and orders concerning the accounts of the rational government, shall apply mutatis mutandis.