The Law for Promotion of Rationalization of Enterprise
法令番号: 法律第5号
公布年月日: 昭和27年3月14日
法令の形式: 法律

審議経過

I hereby promulgate the Law for Promotion of Rationalization of Enterprise.
Signed:HIROHITO, Seal of the Emperor
This fourteenth day of the third month of the twenty-seventh year of Showa (March 14, 1952)
Prime Minister　YOSHIDA Shigeru
Law No.5
The Law for Promotion of Rationalization of Enterprise
CHAPTER I General Provisions
(Purpose)
Article 1.　The purpose of this Law is to promote the rationalization of enterprise by accelerating improvement of technique and the rapid modernization of machines, equipments, etc. of important industries and by rendering guidance, recommendation and others for the improvement of raw materials and material unit of motive power, and thereby to contribute to attainment of self-supporting economy of Japan.
(Definition of Entrepreneur)
Article 2.　The word "entrepreneur" as used in this Law shall mean a person engaged in manufacturing industry, mining, electric enterprise, gas enterprise, transportation, civil engineering, construction, fisheries, or such other enterprises as are provided for by Cabinet Order.
CHAPTER II Acceleration of Improvement of Technique
(Grant of Subsidy, Etc., for Researcher and the Like)
Article 3.　The competent Minister may, when he deemes it necessary for the acceleration of improvement of technique, grant subsidy within the limit of the budget in accordance with the provisions of the Ordinance of the competent Ministry or loan machines, equipments, etc., owned by the State, in accordance with the provisions of the State Property Law (Law No.73 of 1948), to an entrepreneur or other persons who conduct test and research (hereinafter referred to as "researcher" ) in order to encourage and foster the research on technique regarding mining and manufacturing industry, etc., the test for industrialization or the trial manufacture of new machines and equipments (hereinafter referred to as "research" ).
(Exception to Imposition of Income Tax or Corporation Tax upon the Machines, Equipments, Etc. for Test Research)
Article 4.　The competent Minister and the Minister of Finance may give approval to a researcher, in accordance with the provisions of Cabinet Order, to the effect that his researches are urgently necessary for accelerating rationalization of enterprises, and that machines, equipments, etc. which the researcher in going to acquire or construct, are those that are indispensable for the relative research.
2　In cases where an individual who is researcher, and carries on a business provided for in Article 9 paragraph 1 item (4) of the Income Tax Law (Law No.27 of 1947), has obtained the approval under the provision of the preceding paragraph, if he has acquired or constructed the approved machines, equipments, etc. and put them into use for the approved research, within one year after the date of the approval (only when such research is related to the business of such individual), the amount of depreciation charges for such machines, equipments, etc. allowed to be counted in necessary expenses in computation of his business income provided for in the same item, as for each year covering the days within three years after the day on which such machines, equipments, etc. were put into use for the research, shall, notwithstanding the provision of Article 10 paragraph 2 of the same Law, be calculated by multiplying the amount equivalent to 90% of the cost for acquisition or construction of the machines, equipments, etc. by the number of months during the period concerned in such each year and then divided by 36, only within three years after the day on which the machines, equipments, etc. were put into use for the research and when they are putting into such use.
3　In cases where an individual, who was subject to the application of the provisions of the preceding paragraph and this paragraph has deceased, if his successor (including a testamentary donee by a universal title) succeeds to the business related to research conducted by such individual and also continues the research concerned, the provision of Article 5-(2) paragraph 1 of the Income Tax Law shall not apply to a change of ownership of the machines, equipments, etc. for the research on account of the death of such individual. In this case, the machines, equipments, etc. put into use for the research which are acquired through such succession shall be deemed to have continuously been owned by the successor concerned.
4　In cases where a corporation, which is a researcher, obtained the approval under the provision of paragraph 1, if it has acquired or constracted the approved machines, equipments, etc. and put them into use for the approved research, within one year after the date of the approval, the limit amount of depreciation expenses for such machines, equipments, etc. to be computed in accordance with the provisions of the Corporation Tax Law (Law No.28 of 1947) or Order issued thereunder, which allow to count it in business expenses in computation of its business income under the same Law, as for each accounting period covering the days within three years after the day on which such machines, equipments, etc. were put into use for the research, shall, notwithstanding the said provisions, be calculated by multiplying the amount equivalent to 90% of the cost for acquisition or construction of such machines, equipments, etc. by the number of months during the period concerned out of the accounting period concerned and then divided by 36, only within three years after the day on which such machines, equipments, etc. were put into use for the research and when they are putting into such use.
5　The number of months under paragraph 2 and the preceding paragraph shall be calculated in accordance with calendar, and a fraction less than one month shall be calculated as one month.
6　The provision of paragraph 2 or paragraph 4 shall apply only when a report on computing the amount allowed to be included in necessary expenses in accordance with the provision of paragraph 2 or the amount included in business expenses out of the amount of depreciation expenses in accordance with the provision of paragraph 2 is entered in, and also a detailed statement of computation of such amount is attached to, the return under the provision of Article 21, Article 22, Article 26, Article 26-(2) or Article 29 of the Income Tax Law or of Article 18 to Article 21 inclusive of the Corporation Tax Law;and the provision of paragraph 3 shall apply only when a statement of the fact of succession to the business as prescribed in the said paragraph and the fact of continuance of the research is attached to the tax return under the provision of Article 29 of the Income Tax Law.
(Exemption of Machines, Equipments, Etc. for Research from Fixed Assets Tax and Imposition of Uneven Tax Thereupon)
Article 5.　The provisions of Article 6 of the Local Tax Law (Law No.226 of 1950) shall apply to the fixed assets tax applicable on machines, equipments, etc. which are subject to the application of the provisions of paragraph 2 or parargraph 4 of the preceding Article.
CHAPTER III Acceleration of Modernization of Machines, Equipments, Etc.
(Exception to Depreciation)
Article 6.　In accordance with the provisions of the Tax Special Measures Law (Law No.15 of 1946) a special depreciation may be made in regard to machines, equipment, etc. which have been acquired or manufactured for the modernization of machines, equipments, etc. by a person who is engaged in an enterprise coming under one of the important industries which require rapid modernization of machines, equipments, etc. and which may be provided for by Cabinet Order.
(Exemption from Fixed Assets Tax and Imposition of Uneven Tax)
Article 7.　The provisions of Article 6 of the Local Tax Law shall apply to the fixed assets tax applicable on machines, equipments, etc. which are subject to the application of the provision of the preceding Article.
CHAPTER IV Integration of Facilities Relative to Industry
(Rearrangement of Facilities Relative to Industry)
Article 8.　An entrepreneur may apply to an administrator of a road, port, harbor, or a fishing port, for construction, improvement, maintenance and recovery of road or port and harbor or fishing port facilities which are necessary for rationalization of enterprise in accordance with the Ordinance of the competent Ministry.
2　The administrator of road, port, harbor, or fishing port may, in cases where he has received an application in accordance with the provision of the preceding paragraph, if he deems it necessary carry out the construction work within the limit of the budget in accordance with the provisions of the Road Law (Law No.58 of 1919), the Port and Harbor Law (Law No.218 of 1950) and the Fishing Port Law (Law No.137 of 1950). In this case, he may cause an entrepreneur to bear a part of the expenses required for the construction work within the limit of the benefit which such entrepreneur will enjoy.
3　The State may bear or subsidize all or part of the expenses required for the construction work under the provision of the preceding paragraph within the limit of the budget in accordance with the provisions of the Road Law, the Port and Harbor Law or the Fishing Port Law.
4　The State may, when he deemes it necessary, initiate the construction work under the provision of paragraph 2 on its own account, in accordance with the provisions of the Road Law, the Port and Harbor Law or the Fishing Port Law. In this case, it may cause the entrepreneur to bear a part of the expenses required for the construction work within the limit of the benefit which he will enjoy.
CHAPTER V Improvement of Material Unit
(Publication of Goal of Material Unit)
Article 9.　The competent Minister may, when he deemes it necessary for the acceleration of improvement of raw materials of mining and industrial products or material unit of motive power at plants or operating places (hereinafter referred to as "material unit" ), publish the material unit which is to be made a goal.
(Report concerning Material Unit)
Article 10.　The competent Minister may, when he deemes it necessary for the promotion of rationalization of enterprise, cause an entrepreneur to submit a report concerning the material unit at the plant or operating place of the entrepreneur concerned in accordance with the provisions of the Ordinance of the competent Ministry.
(Guidance, Etc. concerning Improvement of Material Unit)
Article 11.　The competent Minister may, when he deemes it necessary for the promotion of rationalization of enterprise, render to an entrepreneur necessary guidance or recommendation concerning the improvement of material unit.
CHAPTER VI Diagnosis of Smaller Enterprise
(Diagnosis of Enterprise)
Article 12.　A local public body may, upon application from a smaller entrepreneur, make an investigation and a diagnosis of the status of the management of the enterprise concerned and give him recommendations concerning its improvement for the promotion of rationalization of smaller enterprise.
(Grant of Subsidy)
Article 13.　The competent Minister may grant to the local public body which makes an investigation and a diagnosis and gives recommendations under the preceding Article a subsidy to coves a part of its expenses, within the limit of the budget.
CHAPTER VII Miscellaneous Provisions
(Report and Spot Inspection, Etc.)
Article 14.　The competent Minister may, when he deems it necessary to secure appropriate and smooth administration of this Law, ask a researcher or an entrepreneur for a report covering necessary information, or have competent personnel enter the plants, working places or business offices of a researcher or an entrepreneur and inspect the conditions of business, ledgers and documents, and other necessary items, or question the persons concerned.
2　The personnel under the preceding paragraph shall bear an identification card showing their status and show it to the persons concerned.
3　The authority of spot inspection or questioning under the provision of paragraph 1 shall not be construed as having been given for the investigation of crimes.
CHAPTER VIII Penal Provisions
Article 15.　Any person who has failed to make a report under paragraph 1 of the preceding Article, submitted a false report, or refused, prevented or avoided the inspection or made a false statement in reply to a question, shall be subjected to a fine not exceeding thirty thousand (30,000) yen.
Article 16.　In case a representative of a juridical person, a proxy an employee, or other worker of a juridical or natural person, has committed the violating act under the preceding Article concerning the business of the juridical or natural person, the said juridical or natural person shall be subjected to a fine under the same Article besides the conductor himself being punished;provided, however, that the said juridical or natural person shall not be punished in case it is proved that proper care and supervision were made concerning the said business in order to prevent the said violating act of the employee or other worker proxy of the juridical or natural person.
Supplementary Provisions:
1　This Law shall come into force as from the day of its promulgation.
2　The Special Taxation Measures Law (Law No.15 of 1946) shall be amended as follows:
In Article 5-(5) paragraph 1, "and Article 5-(9)" shall be added next to "Article 5-(7)" .
In Article 5-(6) paragraph 1, "and Article 5-(8)" shall be amended as "Article 5-(8) and Article 5-(10)" .
The numbering of Article 5-(7) to Article 5-(11) inclusive shall be moved down by two;and the following two Articles shall be added next to Article 5-(6):
Article 5-(7).　In the case where an individual, filing a blue return, who carries on an enterprise provided for by Cabinet Order in accordance with the provisions of Article 6 of the Law for Promotion of Rationalization of Enterprise (Law No.5 of 1951)(hereinafter referred to as "designated enterprise" ) has, on and after January 1, 1951, acquired those of modern machines, equipments, etc., as may be designated by Order (hereinafter referred to as "designated enterprise machines" ), which never were used for any enterprise after their constructions, or constructed designated enterprise machines, and then, put them into use for the enterprise concerned, the amount of money allowed to be included in necessary expenses, as depreciation expenses for the designated enterprise machines concerned, in computing business income for the year covering the day when such machines are used for the enterprise concerned, shall, regardless of the provision of Article 10 paragraph 2 of the Income Tax Law, be an amount computed as necessary expenses by the individual concerned, within the amount less than the amount corresponding to one half of the acquisition cost of the designated enterprise machines concerned;provided, however, that the said amount shall not be less than the amount to be included in necessary expenses as depreciation expenses for the designated enterprise machines in accordance with the provision of Article 10 paragraph 2 of the Income Tax Law.
In the case where the amount included in necessary expenses as depreciation expenses for designated enterprise machines in accordance with the provision of the preceding paragraph, is less than the amount corresponding to one half of the acquisition cost of the designated enterprise machines concerned, the amount allowed to be included in necessary expenses as the depreciation expenses for the designated enterprise machines concerned in computing business in come for the two years following the year provided for in the preceding paragraph shall, regardless of the provision of Article 10 paragraph 2 of the Income Tax Law, be the amount obtained by adding the amount mentioned in each of the following items, to a depreciation amount included in necessary expenses in accordance with the provision of the same paragraph of the same Article as the depreciation expenses for the designated enterprise machines.
1.　In the year following the year provided for in the preceding paragraph, an amount which in less than the amount obtained by deducting the amount included in necessary expenses in accordance with the provision of the preceding paragraph, from the amount corresponding to one half of the acquisition cost of the designated enterprise machines concerned, and which is computed as necessary expenses by the individual concerned;
2.　In the year following the year provided for in the preceding item, an amount which is less than the amount obtained by deducting the congregation of the amount included in necessary expenses in accordance with the provision of the preceding paragraph and the amount mentioned in the preceding item from the amount corresponding to one half of the acquisition cost of the designated enterprise machines concerned, and which is computed in necessary expenses by the individual concerned.
The provision of paragraph 1 of Article 5-(5) shall not apply to designated enterprise machines.
The provision of paragraph 1 or paragraph 2 shall apply only when a report on inclusion in necessary expenses, of the amount to be included in necessary expenses in accordance with the provision of paragraph 1 or paragraph 2, is entered in the return under the provision of Article 21, Article 22, Article 26, Article 26-(2) or Article 29 of the Income Tax Law, and a detailed statement on computation of depreciation amount for the designated enterprise machines is attached to the return concerned.
Article 5-(8).　In the case where a corporation, filing a blue return, who carries on a designated enterprise, has, on and after the opening day of an accounting period ending on and after April 1, 1951, those of the designated enterprise machines, which never were used for any enterprise after their construction, or constructed designated enterprise machines, and then put them into use for the enterprise concerned, the limit amount of depreciation for the designated enterprise machines concerned to be computed in accordance with the provisions of the Corporation Tax Law and Order issued thereunder, for the accounting period covering the day when such machines are used for the enterprise concerned, shall, regardless of these provision, be an amount corresponding to one half of the acquisition cost of the designated enterprise machines concerned.
The provision of Article 5-(6) paragraph 1 shall not apply to designated enterprise machines.
The provision of Article 5-(6) paragraph 3 shall apply mutatis mutandis to the case under paragraph 1.
3　The provision of Article 5-(7) of the Special Taxation Measures Law after amendment (hereinafter referred to as "the Law" ) shall apply to the income tax for 1951 and thereafter.
4　The provision of Article 5-(8) of the Law, shall apply to the corporation tax for accounting period closing on and after January 1, 1952, and thereafter.
5　In cases where a corporation has, in the course of a period from the opening day of the accounting period closing on and after April 1, 1951 to the closing day of the accounting period just prior to the one including January 1, 1952, acquired those of the designated enterprise machines under Article 5-(8) of the Law which were never used for any enterprise after their construction, or constructed the designated enterprise machines under the same Article, and then put them into use for the enterprise concerned, if the said corporation has filed a blue return under the provision of Article 25 paragraph 1 of the Corporation Tax Law, in regard to the income for the accounting period when the said machines were put into use for the enterprise concerned, the limit amount of depreciation for the designated enterprise machines shall, as to the computation of business income of the corporation concerned for the accounting period closing on and after January 1, 1952, be computed, on the assumption that the amount corresponding to the depreciation deficit for each accounting period to be accrued in the case of computing the limit amount of depreciation for each accounting period the accounting period concerned to the one just prior to the accounting period including January 1, 1952 as if the provision of Article 5-(8) of the Law applied in the accounting period when such designated enterprise machines were put into use, is the amount of depreciation deficit accrued in each accounting period.
Prime Minister　YOSHIDA Shigeru
Minister of Finance　IKEDA Hayato
Minister of Welfare　YOSHITAKE Eichi
Minister of Agriculture and Forestry　HIROKAWA Kozen
Minister of International Trade and Industry　TAKAHASHI Ryutaro
Minister of Transportation　MURAKAMI Giichi
Minister of Construction　NODA Uichi