Order for Enforcement of the Income Tax Act

In the case where a Resident, with regard to shares held by that Resident (hereinafter in this paragraph referred to as "shares held"), acquires shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split through a company split by split-off prescribed in Article 24, paragraph (1) (Dividend Income) of the Act carried out by the corporation that issued the shares held (limited to a company split by split-off in which no assets other than shares of any one of the succeeding corporation in a company split prescribed in Article 61, paragraph (6), item (iii) (Method of Calculating the Amount of Stated Capital, etc. Corresponding to Shares Held) pertaining to that company split by split-off (hereinafter in this paragraph through paragraph (4) referred to as "succeeding corporation in a company split") or a corporation that has with the succeeding corporation in a company split a relationship specified by Ministry of Finance Order as a relationship of directly or indirectly holding all of the issued shares, etc. of the succeeding corporation in a company split (hereinafter in this paragraph through paragraph (4) referred to as "succeeding parent corporation in a company split") are delivered as assets as a consideration for a split prescribed in Article 2, item (xii)-9, (a) (Definitions) of the Corporation Tax Act; the same applies hereinafter in this paragraph), for the calculation of the assessed value of shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split under Article 105, paragraph (1) (Methods of Valuing Securities) in each year on or after the year that includes the date of that company split by split-off, the acquisition price per share of the acquired shares in the succeeding corporation in a company split (hereinafter in this paragraph referred to as "shares in the succeeding corporation in a company split") or shares in the succeeding parent corporation in a company split (hereinafter in this paragraph referred to as "shares in the succeeding parent corporation in a company split") that serves as the basis of that calculation is the amount calculated by dividing the amount calculated by multiplying the previous acquisition price of one of the shares held by the ratio prescribed in Article 61, paragraph (2), item (ii) pertaining to that company split by split-off by the number of shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split acquired for one of the shares held (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (ii) (Deemed Dividends in the Case of a Company Split by Split-Off) of the Act, or an amount of expenses required for the acquisition of those shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split, the amount obtained by adding the portion of the amount deemed to have been received and the amount of expenses that corresponds to one share in the succeeding corporation in a company split or one share in the succeeding parent corporation in a company split).

In the case where, with regard to shares held by a Resident (hereinafter in this paragraph referred to as "shares held"), a company split by split-off prescribed in Article 24, paragraph (1) of the Act in which the corporation that issued the shares held is the succeeding corporation in a company split (limited to a company split by split-off that falls under a company split without consideration prescribed in Article 4-3, paragraph (6), item (i), (a) (Shareholding Relationships, etc. in Qualified Reorganizations) of the Order for the Enforcement of the Corporation Tax Act and that has the relationship set out in item (ii), (a), (2) of that paragraph; hereinafter in this paragraph and the following paragraph referred to as "company split by split-off without consideration") has taken place, for the calculation of the assessed value of the shares held under Article 105, paragraph (1) in each year on or after the year that includes the date of that company split by split-off without consideration, the acquisition price per share of the shares held that serves as the basis of that calculation is the amount obtained by adding, to the previous acquisition price of one of the shares held, the amount (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (ii) of the Act, the amount obtained by adding the portion of that amount deemed to have been received that corresponds to one of the shares held) calculated by multiplying the amount calculated by multiplying the previous acquisition price of one old share (meaning shares of the splitting corporation prescribed in Article 61, paragraph (6), item (vi) pertaining to that company split by split-off without consideration (referred to in the following paragraph and paragraph (4) as the "splitting corporation") that the Resident held immediately before that company split by split-off without consideration; the same applies hereinafter in this paragraph) by the ratio prescribed in Article 61, paragraph (2), item (ii) pertaining to that company split by split-off without consideration by the number of those old shares and dividing the result by the number of the shares held, and the shares held are deemed to have been acquired on that date.

In the case where a Resident receives shares in the succeeding corporation in a company split, shares in the succeeding parent corporation in a company split, or other assets through a company split by split-off prescribed in Article 24, paragraph (1) of the Act by the corporation that issued shares held by the Resident (hereinafter in this paragraph referred to as "shares held"), or where a company split by split-off without consideration in which the corporation that issued the shares held is the splitting corporation has taken place, for the calculation of the assessed value of the shares held under Article 105, paragraph (1) in each year on or after the year that includes the date of that company split by split-off or company split by split-off without consideration, the acquisition price per share of the shares held that serves as the basis of that calculation is the amount obtained by deducting, from the previous acquisition price of one of the shares held, the amount calculated by multiplying the previous acquisition price of one of the shares held by the ratio prescribed in Article 61, paragraph (2), item (ii) pertaining to that company split by split-off or company split by split-off without consideration, and the shares held are deemed to have been acquired on that date.

Where shares in the succeeding corporation in a company split or shares in the succeeding parent corporation in a company split pertaining to a company split by split-off prescribed in paragraph (1) are not delivered in proportion to the ratio of the number or amount of shares in the splitting corporation held by each Shareholder, Member, or Other Investor of the splitting corporation to the total number or total amount of the issued shares, etc. of the splitting corporation pertaining to that company split by split-off, that company split by split-off is not to be regarded as falling under a company split by split-off prescribed in that paragraph.

A corporation that issued the shares held prescribed in paragraph (3) must, where it has carried out a company split by split-off prescribed in Article 24, paragraph (1) of the Act, notify the individual who held those shares held of the ratio prescribed in paragraph (3) pertaining to that company split by split-off.

In the case where a Resident, with regard to a beneficial interest in a Specified Trust That Issues Beneficiary Certificates held by the Resident (hereinafter in this paragraph referred to as "old beneficial interest"), acquires a beneficial interest in a successor trust through a trust split of the Specified Trust That Issues Beneficiary Certificates pertaining to that old beneficial interest (limited to a trust split in which no assets other than a beneficial interest in the successor trust pertaining to that trust split (meaning a trust that receives a transfer of part of the trust property of another trust having the same trustee through a trust split; the same applies hereinafter through paragraph (8)) are delivered to the beneficiaries of the split trust pertaining to that trust split (meaning a trust that transfers part of its trust property through a trust split as the trust property of another trust having the same trustee or of a new trust; the same applies hereinafter in this paragraph and paragraph (8)) (excluding money or other assets delivered as consideration based on a request for acquisition of a beneficial interest prescribed in Article 103, paragraph (6) (Request for Acquisition of Beneficial Interest) of the Trust Act made by such a beneficiary who opposes the trust split); the same applies hereinafter in this paragraph), for the calculation of the assessed value of the beneficial interest in the successor trust under Article 105, paragraph (1) in each year on or after the year that includes the date of that trust split, the acquisition price per unit of the acquired beneficial interest in the successor trust (hereinafter in this paragraph referred to as "successor trust beneficial interest") that serves as the basis of that calculation is the amount calculated by dividing the amount calculated by multiplying the previous acquisition price of one unit of the old beneficial interest by the ratio that the amount set out in item (ii) bears to the amount set out in item (i) by the number of units of successor trust beneficial interest acquired for one unit of the old beneficial interest (where there is an amount of expenses required for the acquisition of that successor trust beneficial interest, the amount obtained by adding the portion of that amount of expenses that corresponds to one unit of successor trust beneficial interest).

the amount obtained by deducting, from the sum of the amounts recorded on the balance sheet of the split trust pertaining to that trust split as the value of assets at the end of the most recent calculation period of that split trust that ended before that trust split, the sum of the amounts recorded on that balance sheet as the value of liabilities at that time;

the amount obtained by deducting the sum of the amounts recorded in the books of the successor trust pertaining to that trust split as the value of liabilities transferred by that trust split from the sum of the amounts recorded in those books as the value of assets transferred to that successor trust by that trust split (where that amount exceeds the amount set out in the preceding item, the amount set out in that item).

In the case where a Resident receives a beneficial interest in a successor trust or other assets through a trust split of a Specified Trust That Issues Beneficiary Certificates pertaining to a beneficial interest in such a trust held by the Resident (hereinafter in this paragraph referred to as "old beneficial interest"), for the calculation of the assessed value of the old beneficial interest under Article 105, paragraph (1) in each year on or after the year that includes the date of that trust split, the acquisition price per unit of the old beneficial interest that serves as the basis of that calculation is the amount obtained by deducting, from the previous acquisition price of one unit of the old beneficial interest, the amount calculated by multiplying the previous acquisition price of one unit of the old beneficial interest by the ratio prescribed in the preceding paragraph pertaining to that trust split, and the old beneficial interest is deemed to have been acquired on that date.

Where a beneficial interest in the successor trust pertaining to a trust split prescribed in paragraph (6) is not delivered in proportion to the ratio of the number of units or value of the beneficial interest in the split trust held by the beneficiaries of the split trust pertaining to that trust split, that trust split is not to be regarded as falling under a trust split prescribed in that paragraph.

The trustee of a Specified Trust That Issues Beneficiary Certificates pertaining to the old beneficial interest prescribed in paragraph (7) must, where it has carried out a trust split, notify the individual who held that old beneficial interest of the ratio prescribed in that paragraph pertaining to that trust split.

In the case where a Resident, with regard to shares held by that Resident (hereinafter in this paragraph referred to as "shares held"), acquires shares in a wholly owned subsidiary corporation through a share distribution prescribed in Article 24, paragraph (1) (Dividend Income) of the Act carried out by the corporation that issued the shares held (limited to a share distribution in which no assets other than shares in a wholly owned subsidiary corporation prescribed in Article 2, item (xii)-15-2 (Definitions) of the Corporation Tax Act (hereinafter in this paragraph through paragraph (3) referred to as "wholly owned subsidiary corporation") are delivered; the same applies hereinafter in this paragraph), for the calculation of the assessed value of shares in the wholly owned subsidiary corporation under Article 105, paragraph (1) (Methods of Valuing Securities) in each year on or after the year that includes the date of that share distribution, the acquisition price per share of the acquired shares in the wholly owned subsidiary corporation (hereinafter in this paragraph referred to as "wholly owned subsidiary shares") that serves as the basis of that calculation is the amount calculated by dividing the amount calculated by multiplying the previous acquisition price of one of the shares held by the ratio prescribed in Article 61, paragraph (2), item (iii) (Method of Calculating the Amount of Stated Capital, etc. Corresponding to Shares Held) pertaining to that share distribution by the number of wholly owned subsidiary shares acquired for one of the shares held (where there is an amount deemed to have been received as a dividend of surplus or dividend of profits pursuant to Article 25, paragraph (1), item (iii) (Deemed Dividends in the Case of a Share Distribution) of the Act, or an amount of expenses required for the acquisition of those wholly owned subsidiary shares, the amount obtained by adding the portion of the amount deemed to have been received and the amount of expenses that corresponds to one wholly owned subsidiary share).

In the case where a Resident receives shares in a wholly owned subsidiary corporation or other assets through a share distribution prescribed in Article 24, paragraph (1) of the Act carried out by the corporation that issued shares held by the Resident (hereinafter in this paragraph referred to as "shares held"), for the calculation of the assessed value of the shares held under Article 105, paragraph (1) in each year on or after the year that includes the date of that share distribution, the acquisition price per share of the shares held that serves as the basis of that calculation is the amount obtained by deducting, from the previous acquisition price of one of the shares held, the amount calculated by multiplying the previous acquisition price of one of the shares held by the ratio prescribed in Article 61, paragraph (2), item (iii) pertaining to that share distribution, and the shares held are deemed to have been acquired on that date.

Where shares in the wholly owned subsidiary corporation pertaining to a share distribution prescribed in paragraph (1) are not delivered in proportion to the ratio of the number or amount of shares in the corporation making a distribution in kind held by each Shareholder, Member, or Other Investor of the corporation making a distribution in kind prescribed in Article 61, paragraph (6), item (xii) pertaining to that share distribution to the total number or total amount of the issued shares, etc. of that corporation making a distribution in kind, that share distribution is not to be regarded as falling under a share distribution prescribed in paragraph (1).

A corporation that issued the shares held prescribed in paragraph (2) must, where it has carried out a share distribution prescribed in Article 24, paragraph (1) of the Act, notify the individual who held those shares held of the ratio prescribed in paragraph (2) pertaining to that share distribution.