Consumption Tax Act

Where a person who is legally regarded as having made a transfer, etc. of assets is a mere nominee and does not enjoy the consideration for that transfer, etc. of assets, and a person other than that person enjoys the consideration for that transfer, etc. of assets, the provisions of this Act apply on the basis that that transfer, etc. of assets was made by the person who enjoys that consideration.

Where a person who is legally regarded as having made a specified purchase is a mere nominee and does not pay the consideration for that specified purchase, and a person other than that person is the person who is to pay the consideration for that specified purchase, the provisions of this Act apply on the basis that that specified purchase was made by the person who is to pay that consideration.

A beneficiary of a trust (limited to a person who actually has rights as a beneficiary) is deemed to hold the assets belonging to the trust property of that trust, and the asset transactions, etc. pertaining to that trust property (meaning transfers, etc. of assets, taxable purchases and the taking of taxable goods out of a bonded area; the same applies hereafter in this paragraph and paragraph (1) of the following Article) are deemed to be the asset transactions, etc. of that beneficiary, and the provisions of this Act apply; provided, however, that this does not apply to the assets belonging to the trust property of a group investment trust prescribed in Article 2, item (xxix) (Definitions) of the Corporation Tax Act, a trust subject to corporate taxation prescribed in item (xxix)-2 of that Article, a retirement pension trust, etc. prescribed in Article 12, paragraph (4), item (i) (Vesting of Assets and Liabilities in Trust Property and Profit and Expenses to Be Attributed to Trust Property) of that Act, or a public interest trust or participant protection trust prescribed in item (ii) of that paragraph, or to the asset transactions, etc. pertaining to that trust property.

A person who actually has the authority to make changes to a trust (other than what Cabinet Order prescribes as the authority to make minor changes) and who is meant to benefit from the trust property of that trust (other than a beneficiary) is deemed to be a beneficiary as prescribed in the preceding paragraph, and the provisions of that paragraph apply.

The application of paragraph (1) in the case where there are two or more beneficiaries, the determination of whether a person falls under a person who is meant to benefit from the trust property as prescribed in the preceding paragraph, and other matters necessary for the application of the provisions of the preceding two paragraphs are specified by Cabinet Order.

The trustee of a trust subject to corporate taxation prescribed in the proviso to paragraph (1) of the preceding Article or a public interest trust prescribed in the proviso to that paragraph (hereinafter in this Article referred to as a "trust subject to corporate taxation, etc.") is deemed to be a separate person for each of the trust assets, etc. (meaning the assets belonging to the trust property and the asset transactions, etc. pertaining to that trust property; the same applies hereafter in this Article) of each trust subject to corporate taxation, etc. and its own assets, etc. (meaning the assets and asset transactions, etc. other than the trust assets, etc. of trusts subject to corporate taxation, etc.; the same applies hereafter in this Article), and the provisions of this Act (excluding Article 5, the preceding Article, Articles 20 through 27, Articles 47, 50 and 51, and Chapter VI; the same applies hereafter in this Article) apply.

In the case referred to in the preceding paragraph, the trust assets, etc. and own assets, etc. of each trust subject to corporate taxation, etc. belong to the respective separate persons deemed under that paragraph.

Where an individual business operator is a trustee business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under the preceding two paragraphs, the provisions of this Act are applied to that trustee as the person to whom the trust assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), that trustee business operator is deemed to be a corporation, and the provisions of this Act apply.

With respect to the taxable sales in the base period for the taxable period of an own-assets business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under paragraphs (1) and (2), the provisions of this Act are applied to that trustee as the person to whom the own assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), notwithstanding Article 9, paragraph (2), the taxable sales are the total of the following amounts:

the amount calculated under Article 9, paragraph (2) as the taxable sales in the base period of that own-assets business operator for that taxable period;

the total of the amounts calculated as provided by Cabinet Order as the taxable sales of the trustee business operator of each trust subject to corporate taxation, etc. pertaining to that own-assets business operator in the period corresponding to the base period of that own-assets business operator.

With respect to the taxable sales in the base period for the taxable period of a trustee business operator, notwithstanding Article 9, paragraph (2), the taxable sales are the taxable sales in the base period for the taxable period of the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator that includes the first day of that taxable period.

With respect to the taxable sales in the specified period prescribed in Article 9-2, paragraph (1) (or, where paragraph (3) of that Article applies, the total prescribed in that paragraph), the taxable sales in the base period for that business year prescribed in Article 11, paragraph (4), and the taxable sales in the taxable period prescribed in Article 30, paragraph (2) of an own-assets business operator or trustee business operator, notwithstanding Article 9-2, paragraph (2) or (3), Article 11, paragraph (4) or Article 30, paragraph (6), the taxable sales are, respectively, the amounts calculated as provided by Cabinet Order in accordance with paragraph (4) or (5) as corresponding to those amounts.

Article 37, paragraph (1) applies to the taxable period of a trustee business operator that includes the first day of that taxable period only in the case where, on that first day, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator is a business operator to which Article 37, paragraph (1) applies for the taxable period of that own-assets business operator that includes that first day. In this case, in that paragraph, the phrase "business operator (" is deemed to be replaced with "trustee business operator (meaning a trustee business operator prescribed in Article 15, paragraph (3), and excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) on the first day of its taxable period, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator (meaning a trust subject to corporate taxation, etc. prescribed in Article 15, paragraph (1)) (meaning an own-assets business operator prescribed in paragraph (4) of that Article, and"; the phrase "to the district director having jurisdiction over its place for tax payment, for a taxable period in which its" is deemed to be replaced with "for a taxable period in which its"; the phrase "a written notification stating that it will be subject to the application of this paragraph, then, for each taxable period from the taxable period following the taxable period that includes the day on which the written notification was submitted (or, where the taxable period that includes the day on which the written notification was submitted is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, from that taxable period) onward (excluding a taxable period in which its taxable sales in the base period exceed 50 million yen and a taxable period pertaining to a corporate split, etc.)" is deemed to be replaced with "is a business operator to which this paragraph applies, then, for the taxable period of that trustee business operator that includes that first day"; and the phrase "that business operator" in the items of that paragraph is deemed to be replaced with "that trustee business operator".

Where the own-assets business operator referred to in the preceding paragraph has become subject to the application of Article 37-2, paragraph (1) or (6) for the taxable period of that own-assets business operator that includes the first day prescribed in that paragraph (hereinafter in this paragraph referred to as the "own-assets taxable period"), the application of the preceding paragraph is as provided in the following items for the category of cases set forth in those items:

in the case where the own-assets taxable period is an elected disaster-affected taxable period prescribed in Article 37-2, paragraph (1) and approval under that paragraph has been obtained for that elected disaster-affected taxable period: the own-assets business operator is deemed to have been a business operator subject to the application of Article 37, paragraph (1) on the first day prescribed in the preceding paragraph;

in the case where the own-assets taxable period is a disaster-affected taxable period of discontinuance prescribed in Article 37-2, paragraph (6) and approval under that paragraph has been obtained for that disaster-affected taxable period of discontinuance: the own-assets business operator is deemed not to have been a business operator subject to the application of Article 37, paragraph (1) on the first day prescribed in the preceding paragraph.

For the application of Article 42 to a trustee business operator, a merger of trusts is deemed to be a merger, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the former trust involved in the merger of trusts is to be included in the merged corporation, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the new trust involved in the merger of trusts is to be included in the merging corporation.

Where there are two or more trustees of a trust subject to corporate taxation, etc., the trust assets, etc. of each trustee pertaining to that trust subject to corporate taxation, etc. are deemed to be the trust assets, etc. of the trustee who presides over the trust affairs of that trust subject to corporate taxation, etc. (hereinafter in this Article referred to as the "presiding trustee"), and the provisions of this Act apply.

With respect to the consumption tax pertaining to the trust assets, etc. deemed under the preceding paragraph to be the trust assets, etc. of the presiding trustee, trustees other than the presiding trustee are liable for joint payment of that consumption tax.

For the application of the provisions of Article 43, paragraph (1) (Competent Agency for Collection of National Taxes) of the Act on General Rules for National Taxes where the consumption tax prescribed in the preceding paragraph is collected from a trustee other than the presiding trustee, in that paragraph, the phrase "The collection of a national tax" is deemed to be replaced with "The collection of consumption tax pertaining to the liability for joint payment prescribed in Article 15, paragraph (13) of the Consumption Tax Act of a trustee other than the presiding trustee prescribed in paragraph (12) of that Article (hereinafter in this paragraph referred to as the "presiding trustee") (hereinafter in this paragraph referred to as a "jointly liable trustee") of a trust subject to corporate taxation, etc. prescribed in paragraph (1) of that Article (Application of This Act to Trustees of Trusts Subject to Corporate Taxation, etc.)", and the phrase "the place for tax payment of the national tax" is deemed to be replaced with "the place for tax payment of that consumption tax or the place for tax payment of that consumption tax in the case where that jointly liable trustee had been the presiding trustee of that trust subject to corporate taxation, etc.".

In addition to what is provided for in the preceding paragraphs, matters necessary for the calculation of the amount of consumption tax on purchases in the case where a merger or split of trusts subject to corporate taxation, etc. has taken place, and other matters necessary for the application of the provisions of this Act to a trustee business operator or an own-assets business operator, are specified by Cabinet Order.