The Special Taxation Measures Law (Law No.15 of 1946) shall be partially amended as follows:
In Article 1, "corporation tax," shall be added next to "income tax," , and ", sugar excise" shall be deleted.
The following one Article shall be added next to Article 2:
Article 2-(2). With respect to such interests on public bonds, corporate debentures, bank deposits, and on other deposits as may be prescribed by Ordinance, and to profits derived from such joint operation trusts as may be prescribed by Ordinance, which are to be paid to such persons as provided for in Article 1 paragraph 1 of the Income Tax Law within the enforcement area of the same Law, the income tax may, notwithstanding the provisions of Article 9 paragraph 1 item 1 and Article 13 of the same Law, be imposed upon such interests or profits at 50% rate separately from the other incomes at the time of payment of such interests or profits, through the statements of taxpayers, based on the procedures as may be prescribed by Ordinance.
Such income tax as provided for in the preceding paragraph shall be collected by payers of such interests or profits at the time of payment thereof and turned over to the Government by the 10th of the following month of the month to which the collection belongs.
For the purpose of application of the Income Tax Law, such income tax to be collected and turned over in accordance with the provisions of the preceding paragraph shall be deemed such income tax to be collected and turned over under the provision of Article 37 of the same Law, and the due date of taxpayment under the provision of the preceding paragraph shall be deemed the due date of taxpayment under the provision of Article 37 of the same Law;and for the purpose of application of the provisions of Article 69-(2) of the same Law and Article 72 and Article 74 of the same Law (limited to such part as relating to Article 69-(2) of the same Law), the income tax to be collected in accordance with the provision of the preceding paragraph shall be deemed the income tax to be collected in accordance with the provision of Article 37 of the same Law.
The following four Articles shall be added next to Article 5-(4):
Article 5-(5). If an individual filing his return on blue form under the provision of Article 26-(4) paragraph 1 of the Income Tax Law has acquired such machines, other equipments or ships as contribute to reconstruction of Japanese economy and as may be prescribed by Ordinance (hereinafter referred to as "machines and others" in this Article) and as have not been used for the business after the production thereof, or has produced machines and others, and has used them for his business on or after January 1, 1951, the amount equivalent to 150% of such depreciation charges of the machines and others concerned to be deducted from the gross receipt under the provisions of the same Law as relating to a three year period from the day on which he used them for his business shall, notwithstanding the provision of Article 10 paragraph 2 of the same Law, be included in the necessary expense for the purpose of computing the income under the provision of Article 9 paragraph 1 item 3 or 4 of the same Law, only for the three year period.
In case a corporation filing its return on blue form under the provisions of Article 25 paragraph 1 of the Corporation Tax Law has acquired such machines and others as have not been used for the purpose of its business after the production thereof, or has produced machines and others, and has used them for the purpose of its business the beginning day of accounting period ending on or after April 1, 1951, the amount equivalent to 150% of such depreciation charges of the machines and others concerned for every accounting period involving any day of a three year period from the day on which the corporation used them for its business as are to be included in business expense in accordance with the provisions of Order issued under the same Law for the purpose of computing income for the accounting period concerned shall, notwithstanding the provisions of Article 9 paragraph 7 and Article 9-(8) of the same Law, be included in the amount of losses for the purpose of computing income for the accounting period concerned under the provisions of the same Law, only for the three year period.
In case the total amount of the depreciation charges of the machines and others concerned for every accounting period involving any day of the three year period from the day on which the corporation falling under the provision of the preceding paragraph used them for its business (the amount of depreciation charges for the accounting period of which ending day is not involved in the three year period shall be limited to the amount exceeding the depreciation charges for such term of the accounting period as is not involved in the three year period, which are to be included in the amount of losses in computing the income for the accounting period concerned in accordance with the provisions of Order under the Corporation Tax Law) is less than the amount (hereinafter referred to as "limit amount of special depreciation charges" in this Article) equivalent to 150% of depreciation charges (hereinafter referred to as "limit amount of ordinary depreciation charges" ) of machines and others concerned for the three year period as provided for in the preceding paragraph which are to be included in the amount of losses in computing the income for the accounting period concerned in accordance with the provision of Order under the same Law, if the depreciation charges of the machines and others concerned for every accounting period involving any day of the two year period from the day when three years have elapsed since the day when the machines and others concerned where used for its business exceed the depreciation charges to be included in the amount of losses in computing the income for accounting period concerned in accordance with the provisions of Order under the same Law, the amount, within the limit of smaller amount whichever deficient amount in the depreciation charges or the limit amount of special depreciation charges minus the limit amount of the ordinary depreciation charges shall be included in the amount of losses in computing the income for the accounting period concerned under the same Law.
The provisions of the preceding three paragraphs shall not apply to a case where the inclusion of depreciation charges in the necessary expense or amount of losses under the provisions of the preceding three paragraphs is not stated in the return as provided for in Article 21, Article 22, Article 26, Article 26-(2) or Article 29 of the Income Tax Law or in the return as provided for in Articles 18 to 21 inclusive of the Corporation Tax Law.
Article 5-(6). No corporation tax shall be imposed for every accounting period upon reserves of such other corporations as enumerated in Article 17 paragraph 1 item 2 of the Corporation Tax Law.
Article 5-(7). With respect to the family corporation as enumerated in Article 17 paragraph 1 item 2 of the Corporation Tax Law, the corporation tax on reserves for every accounting period shall, notwithstanding the provisions of Article 17 of the same Law, be imposed upon such amount in excess of 500,000 yen of reserves for every accounting period, at 5% rate.
Article 5-(8). If any of financial institutions has paid the dividend on preferred stock or equity from its profits or surpluses under the provision of Article 13 paragraph 1 or Article 14 paragraph 1 (including a case where this provision applies mutatis mutandis in Article 17 paragraph 2) of the Law for Issuance, etc. of Debentures by Banks, the amount of such dividend shall be included in the amount of losses for the purpose of computing the income under the provisions of the Corporation Tax Law for the accounting period in which the profits or surpluses concerned accrued.
Article 11 shall be deleted and Article 12 shall be made Article 11.
Supplementary Provisions:
1 This Law shall come into force as from April 1, 1951.
2 The provisions of Article 2-(2) of the Special Taxation Measures Law as amended (hereinafter referred to as "the Law" ) shall apply to such interests (as regards unregistered public bonds and corporate debentures, the amount paid on or after April 1, 1951) and profits are as to be paid on or after the same day.
3 The provisions of Article 5-(5) paragraphs 1 and 4 (limited to such part as relating to the income tax) or the Law shall apply to the income tax of an individual for 1951 and thereafter.
4 The provisions of Article 5-(5) paragraphs 2 to 4 inclusive (limited to such part as relating to the corporation tax) shall apply to the corporation tax on income for the accounting period ending on or after April 1, 1951, and the provisions of Article 5-(6) and Article 5-(7) shall apply to the corporation tax on reserves for the accounting period beginning on or after April 2, 1951 and the provision of Article 5-(8) shall apply to the corporation tax on income for the accounting period ending on or after March 31, 1951.
5 In a case where a corporation subject to the application of the provision of Article 5-(6) of the Law after the enforcement of this Law files a return under Article 19 of the Corporation Tax Law with the Government, if there is any corporation tax on reserves for every accounting period in such corporation tax amount for the previous accounting period as provided for in the same Article, such corporation tax amount for the previous accounting period minus the corporation tax amount on reserves for every accounting period concerned shall be the due corporation tax amount for the previous accounting period.
6 In case a person has, at the time of the enforcement of this Law, such sugar imported before the enforcement of this Law (including that imported from the area deemed foreign country in accordance with the provision of Article 104 of the Customs Law (Law No.61 of 1899)), or such sugar, treacle or sugar water made from the imported sugar as was exempt from the sugar excise in accordance with the old provisions of Article 11 paragraph 1 or 2 of the Special Taxation Measures Law (hereinafter referred to as "imported sugar and others" ) more than 200 kin in total in the place outside the bonded area or the manufactory of sugar, treacle or sugar water (meaning such sugar, treacle or sugar water as provided for in each item of Article 3 of the Sugar Excise Law (Law No.13 of 1901);hereinafter the same), he shall be deemed to have received them from the manufactory at the date of the enforcement of this Law and shall be subject to the sugar excise. In this case, if the amount of tax is not more than 10,000 yen, it shall be collected by April 30, 1951, and if it exceeds 10,000 yen, the amount of tax is divided into the equal installments for each month according to the following classification, and shall be collected by the end of the month concerned:
If the amount of tax exceeds 10,000 yen |
...... April and May, 1951. |
If the amount of tax exceeds 50,000 yen |
...... April to June, 1951. |
If the amount of tax exceeds 100,000 yen |
...... April to July, 1951. |
7 A person falling under the provision of the preceding paragraph shall report the kind, class, quantity and storage place of such imported sugar and others as possessed by him to the chief of taxation office having jurisdiction over the place of storage (hereinafter referred to as "the chief of competent taxation office" ) within one month after the enforcement of this Law.
8 In a case where the Oilstuff and Sugar Distribution kodan falls under the provision of paragraph 6, if it has gotten the approval of the chief of competent taxation office, the sugar excise may, notwithstanding the provision of the same paragraph, be collected from a recipient of imported sugar and others, at the time when such imported sugar and others as possessed by the said Kodan are received from the storage place thereof.
9 If the Oilstuff and Sugar Distribution Kodan intends to get the approval under the preceding paragraph, it shall file a written application stating therein such intention, and kind, class, quantity and storage place of such imported sugar, and others as possessed by itself, with the chief of competent taxation office.
10 A person who intends to receive such imported sugar and others as approved by the chief of competent taxation office in accordance with the provision of paragraph 8 from the place of storage shall file a receipt application stating therein the time of receipt, kind, class, quantity and storage place of imported sugar and others to be received, with the chief of competent taxation office.
11 If a person falling under the provisions of paragraph 6 who has possessed imported sugar and others for purposes of use as provided for in Article 5 paragraph 1 or Article 11 paragraph 1 of the Sugar Excise Law has gotten the approval of the chief of competent taxation office, the imported sugar and others shall, notwithstanding the provision of paragraph 6, be deemed to have been received with the approval under the provision of Article 5 paragraph 1 or Article 11 paragraph 1 of the same Law at the time of approval.
12 A person who intends to get the approval under the preceding paragraph shall file a written application stating therein such intention, kind, class, quantity, purpose of use and storage place of such imported sugar and others as possessed by him, with the chief of competent taxation office within one month after the enforcement of this Law.