Article 116Acquisition Price of Share Options, etc. in the Case of a Merger, etc.

In the case where a Resident, through a merger, company split, share exchange, or share transfer (hereinafter in this Article referred to as a "merger, etc.") in which the corporation that issued the share options or bonds with share options held by the Resident (hereinafter in this Article referred to as "former share options, etc.") is the merged corporation (meaning the merged corporation prescribed in Article 2, item (xi) (Definitions) of the Corporation Tax Act), the splitting corporation (meaning the splitting corporation prescribed in item (xii)-2 of that Article), the wholly owned subsidiary corporation in a share exchange (meaning the wholly owned subsidiary corporation in a share exchange prescribed in item (xii)-6 of that Article), or the wholly owned subsidiary corporation in a share transfer (meaning the wholly owned subsidiary corporation in a share transfer prescribed in item (xii)-6-5 of that Article), has received, in place of those former share options, etc., only share options or bonds with share options of the acquiring corporation (meaning the acquiring corporation prescribed in Article 2, item (xii) of that Act), the successor corporation in a company split (meaning the successor corporation in a company split prescribed in item (xii)-3 of that Article), the wholly owning parent corporation resulting from a share exchange (meaning the wholly owning parent corporation resulting from a share exchange prescribed in item (xii)-6-3 of that Article), or the wholly owning parent corporation in a share transfer (meaning the wholly owning parent corporation in a share transfer prescribed in item (xii)-6-6 of that Article), in each case pertaining to that merger, etc. (hereinafter in this Article referred to as "acquiring corporation's share options, etc."), for the calculation of the assessed value of the acquiring corporation's share options, etc. under Article 105, paragraph (1) (Valuation Methods for Securities) for each year on or after the year in which the day of that merger, etc. falls, the acquisition price per unit of the acquired acquiring corporation's share options, etc. that forms the basis for that calculation is to be the amount calculated by dividing the previous acquisition price of one unit of former share options, etc. (if there are expenses required for the acquisition of those acquiring corporation's share options, etc., the amount obtained by adding the portion of the amount of those expenses that corresponds to one unit of former share options, etc.) by the number of acquiring corporation's share options, etc. acquired for one unit of former share options, etc.