Article 12Vesting of Assets and Liabilities in Trust Property and Profit and Expenses to Be Attributed to Trust Property

①A beneficiary of a trust (limited to one who currently has rights as a beneficiary) is deemed to hold the assets and liabilities belonging to the trust property of the trust, and the profit and expenses attributed to the trust property are deemed to be the profit and expenses of the beneficiary, and the provisions of this Act apply accordingly; provided, however, that this does not apply to the assets and liabilities belonging to the trust property of a group investment trust, retirement pension trust, etc., public interest trust, etc. or trust subject to corporate taxation, or to the profit and expenses attributed to the trust property.

②A 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 (other than a beneficiary) is deemed to be a beneficiary as prescribed in the preceding paragraph, and the provisions of that paragraph apply.

③The assets and liabilities belonging to the trust property of a group investment trust, retirement pension trust, etc. or public interest trust, etc. of which a corporation is the trustee, and the profit and expenses attributed to the trust property, are deemed not to be the assets and liabilities or the profit and expenses of the corporation in calculating the amount of income of the corporation for each business year, and the provisions of this Act apply accordingly.

④In this Article, the meanings of the terms set forth in the following items are as prescribed in those items:

⑤The application of the provisions of paragraph (1) in the case where there are two or more beneficiaries, the determination of whether a person falls under the category of a person who is meant to benefit from the trust property as prescribed in paragraph (2), and other necessary matters concerning the application of the provisions of paragraphs (1) through (3) are specified by Cabinet Order.