The Law concerning Reduction, Exemption and Postponement of Collection of Taxes for Sufferers from Calamities (Law No.175 of 1947) shall be partially amended as follows:
Article 2 and Article 3 shall be amended as follows:
Article 2. A person who has suffered a severe damage from calamities on his residential house or other properties (limited to the person who has not deducted the amount of loss due to calamities concerned in accordance with the provision of Article 11-(3) of the Income Tax Law) shall, if his total income is not more than 300,000 yen for the year of damage, be exempted from or credited against his income tax for the year (excluding the negligence additional tax, non-filing additional tax, heavy additional tax or additional tax to be collected in accordance with the provision of Article 57-(1) paragraphs 1 to 3 inclusive, Article 57-(2) paragraphs 1 to 3 inclusive or Article 62-(4) paragraph 1 of the same Law, and the delinquent additional tax to be collected in accordance with the provision of Article 9 paragraph 3 of the National Tax Collection Law) according to the following classifications as may be determined by Order:
If his total income does not exceed 150,000 yen...... the whole of his income tax
If his total income exceeds 150,000 yen...... 50% of his income tax.
In case the amounts of income are aggregated in accordance with the provision of Article 13-(2) paragraph 1 or Article 13-(3) paragraph 1 of the Income Tax Law, "total income" under the preceding paragraph shall be the aggregate of the capital incomes of the relatives other than the principal income earner as provided for in Article 13-(2) paragraph 1 or of the total incomes of the dependents (in case the provision of Article 13-(2) paragraph 2 of the same Law applies, the total income minus the capital income) and of the total income of the principal income earner or of the total income of the taxpayer (in case the provision of the same paragraph applies, the total income minus the capital income).
The amount of total income as provided for in paragraph 1 shall be, when the provision of Article 14-(2) paragraph 1 or paragraph 2 of the Income Tax Law applies, the amount of total income concerned plus 25% of the amount of special income as provided for in Article 14 paragraph 1 item (2) of the same Law for the year when the taxpayer suffered the damage.
In Article 4, "as inherited on or after May 3, 1947," shall be deleted, "inherited property" shall be amended as "property acquired by inheritance bequest or donation," and "Article 38" shall be amended as "Article 27 paragraph 1, Article 28 paragraphs 1 to 4 inclusive or Article 29 paragraph 1," "the amount of tax to be added by virtue of Article 59 paragraph 1 of the Estate Tax Law" shall be amended as "the amount of negligence additional tax, non-filing additional tax or heavy additional tax to be collected in accordance with the provision of Article 53 paragraph 1 or 2 or Article 54 paragraph 1 and the delinquent additional tax to be collected in accordance with the provision of Article 9 paragraph 3 of the National Tax Collection Law."
Article 5 shall be amended as follows:
Article 6 shall be deleted;and in Article 7, "as inherited on or after May 3, 1947" shall be deleted, "an inherited property" shall be amended as "a property acquired by inheritance, bequest or donation," "Article 38" shall be amended as "Article 27 paragraph 1, Article 28 paragraphs 1 to 4 inclusive or Article 29 paragraph 1," "the inherited property" shall be amended as "the property concerned," and this Article shall be made Article 6;and the following one Article shall be added next to the same Article:
Article 7. In assessing the net worth tax for a person liable to pay the net worth tax who has suffered severe damage from calamities on his properties which were the basis for the computation of taxable value for net worth tax purposes, before the due date of filing the return under Article 18 paragraphs 1 to 4 inclusive of the Net Worth Tax Law but after the time of taxation under the provision of Article 1 item (1) of the same Law, the value of such properties shall be computed, as may be prescribed by Order, after deducting the value of the damaged part.
In Article 8, "net worth tax" shall be added next to "estate tax."
In Article 9, "net worth tax" shall be added next to "inheritance tax."
In Article 10, "Articles 2 to 7" shall be amended as "Article 2, Article 4, Article 6, Article 7."
Supplementary Provisions:
1. This Law shall come into force as from April 1, 1950.
2. The amended provision of Article 2 shall apply to the income tax for 1950 or thereafter.
3. In case the income of an individual, who suffered severe damage from calamities, which occurred within the period between January 1, 1948 and December 31, 1949, on his income producing assets or on his business assets, is computed for the purpose of assessing the income tax for each of the three years from the next year of the year when the individual suffered the damage, the amount equivalent to the amount of damage due to the ruin or destruction of the assets concerned (excluding the damage compensated by the insured money, etc.;hereinafter the same in this Article), which are equivalent to the amount entered in the final return for the year when the individual suffered the damage, and was not deducted, in computing the income for the same year, as necessary expenses in accordance with the provision of Article 5 before the amendment, shall be deemed the necessary expenses under the provisions of the Income Tax Law (Law No.27 of 1947);provided, however, that this shall not apply to the damage which had been deducted before the year prior to each year concerned for the purpose of computing the income.
4. The provision of the preceding paragraph shall apply only to the case where a person has entered to that effect, the extent of damage and the amount of losses which was not deducted, in computing the income, as necessary expense before the year prior to the year for which he intends to be favoured with the application, in the return for the year concerned as provided for in Article 21 paragraph 1, Article 21-(2) paragraph 1, Article 22 paragraph 1, Article 22-(2) paragraph 1, Article 26 paragraph 1, Article 26-(2) paragraph 1, Article 26-(3) paragraph 1 or Article 29 paragraph 1 or paragraph 2 of the Income Tax Law, excepting the case as provided for in paragraph 5.
5. In case a person who has been newly allowed, by virtue of paragraph 3, to deduct the amount of the damage incurred as a result of calamities, as necessary expenses in computing his income for 1949, intends to be favoured with the application of the same paragraph for his income tax for the same year, he shall make a request for correction of his income tax for the same year within two months after the enforcement of this Law.
6. Except for the case falling under paragraph 3, the provision of Article 5 before the amendment shall apply to the income tax for 1949 or therebefore.
7. In case more than half of the assets of a corporation have been ruined or destroyed on account of calamities which occurred within the period between January 1, 1948 and the closing date of the accounting period covering December 31, 1949, the loss incurred to the corporation due to such ruin or destruction shall, notwithstanding the provision of Article 9 paragraph 4 of the Corporation Tax Law (Law No.28 of 1947) before the amendment by the Law for Partial Amendments to the Corporation Tax Law (Law No.72 of 1950), be counted in the loss, in computing the income for each accounting period ending within three years from the next day of the closing date of the accounting period when the loss concerned has been incurred (as for the accounting period ending on or before March 31, 1950, the normal income for each of the accounting periods;hereinafter the same);provided, however, that this shall not apply to the amount of money deducted, in computing the income for each accounting period from total profits before the accounting period prior to each accounting period.
8. A corporation which intends to be favoured with the application of the preceding paragraph shall, except for the case provided for in paragraph 9, enter in the return under the provisions of Article 18 paragraph 1, proviso to Article 19 paragraph 1 (including the case where this applies mutatis mutandis in paragraph 7 of the same Article), Article 20 paragraph 1 or Article 21 paragraph 1, for the year, for which it intends to be favoured with the application, to that effect, the extent of damage and the amount of losses incurred from calamities, which was not deducted from total profit, in computing the income for each accounting period, before the preceding accounting period of the accounting period concerned.
9. A corporation which has been newly allowed, in accordance with the provision of paragraph 7, to deduct from the total profit the loss incurred from calamities for the accounting period having ended before the enforcement of this Law shall, if it intends to be favoured with the accounting period concerned, file a return to correct the amount of normal income, excess income and capital for the accounting period concerned within two months after the enforcement of this Law.
10. The provision of Article 4 or Article 6 as amended shall apply to the accessions tax on the property acquired by inheritance, bequest or donation on or after January 1, 1950.
11. The provision of Article 3, Article 4, Article 6 or Article 7 before amendment shall still apply to the estate tax on the inheritance having commenced on or before December 31, 1949.