Article 272Events Equivalent to Discontinuation of Business, etc.

①The events specified by Cabinet Order prescribed in Article 140, paragraph (5) (Claim for a Refund Based on Carryback of Net Loss upon Transfer of the Whole of a Business, etc.) of the Act are the suspension of the whole of the business for a considerable period or the transfer of an important part of it, which are found to make it difficult, by reason of the occurrence of those events, to receive, with respect to the amount of Net Loss prescribed in that paragraph, the application of Article 70, paragraph (1) (Deduction for Carryover of Net Loss) of the Act.

②The amount for which a refund may be claimed under the provisions of Article 140, paragraph (5) or Article 141, paragraph (4) (Claim by an Heir to Be Issued a Refund Based on Carryback of Net Loss) of the Act is the amount calculated, on the basis of the taxable gross income, taxable retirement income and taxable timber income for the year two years before the year that includes the date on which the event prescribed in those provisions occurred, the amount of income tax calculated for those by applying the provisions of Part II, Chapter III, Section 1 (Tax Rates) of the Act, and the amount of Net Loss prescribed in those Articles that arose in the year preceding the year that includes that date, in accordance with the provisions of Article 140, paragraphs (1) through (3) and Article 141, paragraphs (1) through (3) of the Act and the preceding Article. In this case, if the provisions of Article 140, paragraph (1) or Article 141, paragraph (1) of the Act have already been applied to the income tax for that year two years before, the amount obtained by deducting the amount of Net Loss pertaining to that application from the amount equivalent to the taxable gross income, taxable retirement income and taxable timber income for that year two years before is deemed to be that taxable gross income, taxable retirement income and taxable timber income, and the amount obtained by deducting the amount refunded through that application from the amount equivalent to the amount of income tax for that year two years before is deemed to be that amount of income tax.