The Corporation Tax Law (Law No.28 of 1947) shall be partially amended as follows:
In Article 4 item 2, "Japanese Government Corporation for Housing of Allied Personnel," shall be added next to "Kodan," , in item 3 of the same Article, "Civilian Merchant Marine Committee" shall be amended as "Civil Merchant Marine Commission" ;and in item 4 of the same Article, "and Social Insurance Medical Fee Payment Fund" shall be amended as ", Social Insurance Medical Fee Payment Fund and Japan Braodcasting Corporation" .
In Article 5 item 3, "and unions or other organizations of government employees" shall be amended as "and the organizations of national public service personnel or local public service personnel" , and "which have been incorporated and have been established in accordance with the National Public Service Law" shall be amended as "which have been established in accordance with the National Public Service Law or the Local Public Service Law" .
In Article 7-(2) paragraph 2, "Article 31-(2)" shall be amended as "Article 31-(3)" .
In Article 9 paragraph 2, "fine or" shall be amended as ", municipal inhabitant tax under the provisions of the Local Tax Law, fine or" , "the National Tax Collection Law" as "the National Tax Collection Law or the Local Tax Law" , and "and also to the national tax equivalent to the delinquent additional tax" as "and also to the national tax equivalent to the delinquent additional tax, or the negligence additional money, non-filing additional money, heavy additional money or delinquent additional money" , and in paragraph 7 of the same Article, "Article 9-(8)" shall be amended as "Article 9-(9)" .
In Article 9-(2), "its share" shall be amended as "its par-stock" , and "minus the amount expended to issue the shares concerned" shall be amended as "and such issue price of the no-par stock as is not transferred to the capital account, if the no-par stock has been issued" .
In Article 9-(5) paragraph 1, "by allotting to the shareholders, partners or investors of the amalgamated corporation less stocks or less amount of money than the paid-up amount of stocks or the invested amount held by the amalgamated corporation at the time of amalgamation" , shall be amended as"for the fact that the increased amount of capital or investment of the amalgamating corporation as the result of the amalgamation (or, if the new corporation has been established as the result of the amalgamation, the amount of capital or investment at the time of the establishment of the new corporation) is less than the amount of capital or investment (or, if there are two or more amalgamated corporations the total amount of capital or investment of these amalgamated corporations;or in cases where the amalgamating corporation had or amalgamated corporation had another amalgamated corporation's stock or investment, if the amalgamating corporation does not allot its share or investment to the stock or investment concerned, the total amount of capital or investment concerned shall be reduced by the amount of capital or investment of the amalgamated corporation corresponding to the stock or investment to which the amalgamating corporation's stock or investment was not allotted).
In Article 9-(6) paragraph 2 item 1, "(as for stocks or investments, the paid-up amount thereof;hereinafter the same in this Article)" shall be deleted;in item 3 of the same paragraph "paidup amount" shall be amended as "the amount" ;and the following one item shall be added to the same paragraph:
4. In a case where a corporation owns stocks of other corporation, if the issuer corporation of the stock has transferred the amount of reserve or a part thereof to the capital account, such amount of reserve transferred to the capital account as corresponds to the stocks which the owner corporation of the stock owns.
In paragraph 3 of the same Article, "each item of the preceding paragraph" shall be amended as "items 1 to 3 inclusive of the preceding paragraph" , and "the paid-up amount thereof" as "the amount of the stock or investment concerned." ;and the following one paragraph shall be added to the same Article:
5 The amount of the stock or investment included in the property which was acquired due to the redemption of stocks decrease in capital, retirement, secession, decrease in investment or dissolution in a case under the provision of paragraph 2 item 1 or 2 and the amount of stock or investment which was acquired due to amalgamation in a case under the provision of item 3 of the same paragraph shall be the face value of the stock or the amount of the investment for the purpose of the application of the provisions of the preceding three paragraphs; provided that, if the corporation which issues the stocks acquired in a case under the provision of paragraph 2 item 1 or 2 issues no-par stocks, or if, in a case under the provision of item 3 of the same paragraph, nopar stocks are issued as the result of the amalgamation, the value of the stock concerned shall be the amount prescribed respectively under item 1 or 2.
1. The amount of capital of the issuer corporation at the time of the decision with respect to the redemption of stocks, decrease in capital or decrease in investment which is the cause for the acquisition of the stock concerned, or at the time of retirement or secession or at the time of the resolution with respect to the distribution of the residual assets, divided by the number of total issued stocks.
2. The increased capital of the amalgamating corporation as the result of amalgamation (or, if the new corporation has been established as the result of amalgamation, the amount of capital at the time of the establishment of the corporation), divided by the number of total stocks issued as the result of amalgamation.
The following one Article shall be added next to Article 9-(8):
Article 9-(9). The amount refunded to a corporation in each accounting period in accordance with the provision of Article 26-(3) paragraph 4 (including the amount appropriated in accordance with the provision of paragraph 5 of the same Article) and the corporation tax refunded due to over-payment, or appropriated for the unpaid national taxes, demand charges for taxpayment, arrears or coercive attachment charges (excluding the interest on the delinquent tax as provided for in Article 42) shall, for the purpose of the computation of income for the accounting period covering the day of such refund or appropriation, not be counted in the gross income.
In Article 11, "Article 9-(8)" shall be amended as "Article 9-(9)," .
In Article 16 paragraph 1, "or the amount that is not counted is gross income in accordance with the provisions of Article 9-(6)" shall be amended as ", the amount of surplus from amalgamated corporation under the provisions of Article 9-(5) as corresponds to the reserve of the amalgamated corporation, and the amount that is not counted in gross income in accordance with the provisions of Article 9-(6) or Article 9-(9)" .
In Article 17 paragraph 1 item (2), "(limited to such corporation as may be a family corporation if non-family corporation is not selected as the shareholder or the member of corporation for determining whether or not it is a family corporation)" shall be added next to "Family corporation" .
In Article 31-(2), "the preceding three Articles" shall be amended as "Articles 29 to 31 inclusive" , and the same Article shall be made Article 31-(3) and the following one Article shall be added next to Article 31:
Article 31-(2). With respect to the taxable basis or amount of corporation tax for the accounting period (including the period deemed one accounting period in accordance with the provisions of Article 19 or Article 20 for the purpose of computing the taxable basis) for which the corporation filled the return under the provisions of Article 18, Article 21 or Article 22 (including the return under the provisions of Article 23 in which the matters to be filled in these returns are stated) and with respect to the amount of loss as the basis for request of refund of corporation tax submitted in accordance with the provision of Article 26-(3) paragraph 1 simultaneously with filing the returns under the provision of Article 18 paragraph 8 or Article 21 paragraph 4, the correction or de-termination under the provision of the preceding three Articles may not be made on or after the date on which three years have elapsed from the due date of filing the return under the provisions of Article 18, Article 21 or Article 22 (or, on or after the said date or the date on which two years have elapsed from the actual filing of the return, whichever is the later, if the return under the provisions of Articles 18 to 23 inclusive was filed before the said date);provided that this shall not apply to the corporation tax or the amount of refund concerned of the corporation which has received the refund under the provisions of Article 26-(3) paragraph 4 or which has evaded the corporation tax by fraud or other illegal act.
The provision of the preceding paragraph shall not be construed so as to contravene the provisions of other Laws concerning prescription.
Article 31-(3) shall be made Article 31-(4).
The following one paragraph shall be added next to Article 34 paragraph 2:
In the case under the preceding paragraph, if the disposition against which the request concerned was made is the correction or determination under the provisions of Articles 29 to 31 inclusive of the taxable basis, amount of corporation tax or amount of loss for the accounting period for which the blue return was filed, or is the assessment of negligence additional tax, non-filing additional tax or heavy additional tax under the correction or determination concerned, the demand or the coercive collection under the provision of the National Tax Collection Law shall not be made with respect to the amount of tax determined or corrected under the provisions of Article 33, negligence additional tax, non-filing additional tax or heavy additional tax, even if the collection of tax is not deferred, during the term from the day of the request for reinvestigation to the day on which the determination under the provision of paragraph 7 was notified with respect to the matters concerning the request.
In paragraph 5 of the same Article, "paragraph 3" shall be amended as "paragraph 4" .
In Article 35 paragraph 1, "paragraph 3" shall be amended as "paragraph 4" , "paragraph 6" as "paragraph 7" ;in paragraph 2 of the same Article, "and paragraph 4" shall be amended as "paragraph 3 and paragraph 5" ;in paragraph 3 item 2 of the same Article, "paragraph 6" shall be amended as "paragraph 7" ;in paragraphs 4 and 5 of the same Article, "paragraph 5" shall be amended as "paragraph 6" ;and in paragraph 6 of the same Article, "the Director of Tax Administration Agency or" shall be deleted, and "paragraph 6" shall be amended as "paragraph 7" .