Order for Enforcement of the Income Tax Act

The Residents who have a special relationship specified by Cabinet Order with a Shareholder, Member, or Other Investor prescribed in Article 157, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Act are the following persons.

a relative of that Shareholder, Member, or Other Investor;

a person who has not filed a notification of marriage with that Shareholder, Member, or Other Investor but is in circumstances equivalent to a de facto marital relationship;

an employee of that Shareholder, Member, or Other Investor;

a person other than the persons set out in the preceding three items who maintains a livelihood by means of money or other assets received from that Shareholder, Member, or Other Investor;

a relative of the persons set out in the preceding three items who shares the same livelihood with those persons.

The individuals who have a special relationship specified by Cabinet Order with the person who directs a business prescribed in Article 157, paragraph (1), item (ii), (b) (Negation of Actions or Calculations by a Family Company) and Article 158 (Presuming the Attribution of Income of a Place of Business) of the Act are the following persons and persons who were those persons.

a relative of that person who directs the business;

a person who has not yet filed a notification of marriage with that person who directs the business but is in circumstances equivalent to a de facto marital relationship;

an employee of that person who directs the business;

a person other than the persons set out in the preceding three items who maintains a livelihood by means of money or other assets received from that person who directs the business;

an employer of that person who directs the business;

the relatives of the persons listed in items (ii) through the preceding item who share a livelihood with those persons.

The grounds specified by Cabinet Order prescribed in Article 159, paragraph (3), item (ii) (Refunding Taxes Withheld, Based on Reassessment or Similar Decision) of the Act are the grounds specified by Cabinet Order prescribed in Article 58, paragraph (5) (Interest on Refund) of the Act on General Rules for National Taxes.

The provisions of Article 268 (Order of Appropriation of Income Tax to Be Refunded) apply mutatis mutandis to the case where a refund under the provisions of Article 159, paragraph (1) of the Act is appropriated to unpaid national tax and expenses for the delinquent tax collection procedure.

A person who receives a refund under the provisions of Article 159, paragraph (1) of the Act must, where, within the amount of the refund, there is an amount of tax withheld prescribed in paragraph (2) of that Article that has not yet been paid and that amount of tax withheld has been paid, submit to the competent district director with jurisdiction over the place for tax payment, without delay, a written notice stating the date of payment, the amount of tax withheld that was paid, and other necessary matters.

The amount calculated as specified by Cabinet Order prescribed in Article 160, paragraph (2) (Refunding of Prepaid Taxes Based on Reassessment or Similar Decision) of the Act is the remainder obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

the sum of the amounts of delinquent tax paid on the amounts of tax listed in the items of Article 120, paragraph (2) (Filing an Income Tax Return) of the Act for the year pertaining to the income tax for which the Reassessment or similar decision under Article 160, paragraph (1) of the Act was made (referred to as "tax prepayment, etc." in the following item) (excluding, where any of that delinquent tax has already become refundable pursuant to the provisions of Article 139, paragraph (2) (Refunding of Prepaid Taxes) or Article 160, paragraph (2) of the Act, the amount of the delinquent tax that has become refundable);

the sum of the amounts of delinquent tax calculated pursuant to the provisions of laws relating to national taxes on each tax prepayment, etc. obtained sequentially, in the order specified below, out of that tax prepayment, etc. (excluding the amount of the portion to be appropriated by a refund under Article 139, paragraph (1) or Article 160, paragraph (1) of the Act) until reaching the amount listed in Article 120, paragraph (1), item (iii) of the Act pertaining to the Reassessment or similar decision referred to in the preceding item (where there is an amount of tax withheld prescribed in item (iv) of that paragraph, the amount listed in that item, and where there is income tax to be appropriated under Article 268, paragraph (2), item (i) (Order of Appropriation of Income Tax to Be Refunded) as applied mutatis mutandis pursuant to paragraph (3), the amount obtained by adding that amount of income tax).

among the tax prepayment, etc., for those with different statutory payment due dates prescribed in Article 2, item (viii) (Definitions) of the Act on General Rules for National Taxes (hereinafter in this item referred to as "statutory payment due date"), the one with the earlier statutory payment due date takes priority;

among the tax prepayment, etc. with the same statutory payment due date, for those with different dates of finalization, the one with the earlier date of finalization takes priority;

among the tax prepayment, etc. with the same statutory payment due date and date of finalization, for those with different dates of payment, the one with the earlier date of payment takes priority.

The grounds specified by Cabinet Order prescribed in Article 160, paragraph (3), item (i), (b) of the Act are the grounds specified by Cabinet Order prescribed in Article 58, paragraph (5) (Interest on Refund) of the Act on General Rules for National Taxes.

The provisions of Article 268 apply mutatis mutandis to the case where a refund under the provisions of Article 160, paragraph (1) or (2) of the Act is appropriated to unpaid national tax and expenses for the delinquent tax collection procedure, and the provisions of Article 269 (Calculation of Interest on Refund Pertaining to Prepaid Taxes) apply mutatis mutandis to the case where the amount of interest on refund is calculated for a refund under the provisions of Article 160, paragraph (1) of the Act, respectively.