①In the case where a consolidated subsidiary corporation prescribed in Article 81-9, paragraph (2), item (ii) of the New Corporation Tax Act is an other domestic corporation prescribed in Article 4-2 of the New Corporation Tax Act that has received the approval referred to in that Article upon receiving the application of Article 3, paragraph (1) of the Supplementary Provisions, if the first day of the first consolidated business year (meaning the first consolidated business year prescribed in Article 15-2, paragraph (1) of the New Corporation Tax Act; the same applies hereinafter in this Article) of the consolidated subsidiary corporation falls on or after the day following the first day of the first consolidated business year of the consolidated parent corporation that has a consolidated full controlling interest with the consolidated subsidiary corporation, the provisions of Article 81-9 of the New Corporation Tax Act apply by deeming the net operating loss prescribed in Article 57, paragraph (1) of the New Corporation Tax Act (including an amount deemed to be a net operating loss pursuant to the provisions of paragraph (2) of that Article, and excluding an amount deemed not to exist pursuant to the provisions of paragraph (5) of that Article) or the net operating loss caused by a disaster prescribed in Article 58, paragraph (1) of the New Corporation Tax Act incurred in each business year that began within five years before the first day of the first consolidated business year of the consolidated subsidiary corporation to be the net operating loss specified in that item.

②Necessary matters concerning the application of the provisions of the preceding paragraph are specified by Cabinet Order.