Order for Enforcement of the Income Tax Act

Where a former trust relating to a merger of trusts, or a split trust relating to a trust split (meaning a trust that, by a trust split, transfers part of its trust property to another trust or a new trust; the same applies in the following paragraph), is a Trust Subject to Corporate Taxation (limited to a trust listed in Article 2, item (xxix)-2, (a) or (c) (Definitions) of the Corporation Tax Act; hereinafter in this paragraph referred to as a "specified Trust Subject to Corporate Taxation"), the new trust relating to that merger of trusts, or the other trust or new trust (excluding a Trust Subject to Corporate Taxation) relating to that trust split, is deemed to be a specified Trust Subject to Corporate Taxation.

Where a merger of trusts or a trust split (limited to one by which a single trust transfers part of its trust property to a new trust; hereinafter in this paragraph and the following paragraph referred to as a "single-trust split into a new trust") takes place, in the case where that merger of trusts makes a Trust Subject to Corporate Taxation the new trust, a former trust relating to that merger of trusts (excluding a Trust Subject to Corporate Taxation) is deemed to have come to fall under a Trust Subject to Corporate Taxation immediately before that merger of trusts, and in the case where that single-trust split into a new trust makes a group investment trust (meaning a group investment trust prescribed in Article 13, paragraph (3), item (i) (Attribution of Trust Property Assets and Liabilities and of Proceeds and Expenses Attributable to Trust Property) of the Act; hereinafter the same applies in this paragraph) or a trust taxed on its beneficiaries (meaning a trust in which a beneficiary prescribed in paragraph (1) of that Article (including a person deemed to be a beneficiary prescribed in paragraph (1) of that Article pursuant to paragraph (2) of that Article) is deemed to hold the assets and liabilities belonging to its trust property; hereinafter the same applies in this paragraph) the split trust, and makes a Trust Subject to Corporate Taxation the successor trust (meaning a trust that, by a trust split, receives the transfer of part of the trust property of a split trust; hereinafter the same applies in this paragraph and the following paragraph), that successor trust is deemed to have come to fall under a Trust Subject to Corporate Taxation, from a group investment trust or a trust taxed on its beneficiaries, immediately after that single-trust split into a new trust.

Where a trust split by which part of the trust property is transferred to another trust (hereinafter in this paragraph referred to as an "absorption-type trust split") or a trust split by which two or more trusts transfer part of their trust property to a new trust (hereinafter in this paragraph referred to as a "split of two or more trusts into a new trust") takes place, the provisions of the preceding two paragraphs apply by deeming that a single-trust split into a new trust has been carried out that makes a trust whose trust property is the trust property transferred by that absorption-type trust split or split of two or more trusts into a new trust (hereinafter in this paragraph referred to as an "intermediate trust in a split") the successor trust, and that a merger of trusts has been carried out immediately thereafter that makes that intermediate trust in a split and the successor trust (in the case of a split of two or more trusts into a new trust, another intermediate trust in a split) the former trusts.

In addition to what is provided for in the preceding three paragraphs, matters necessary for the application of the provisions of the Act or this Cabinet Order with regard to a trust corporation or the settlor or beneficiary of a Trust Subject to Corporate Taxation are specified by Ministry of Finance Order.