This Cabinet Order comes into effect on April 1, 2009; provided, however, that the provisions listed in the following items come into effect on the date specified in each of those items:

The provisions of Article 59, paragraph (1) (Revenue Pertaining to Distributions of Proceeds of Investment Trusts, etc.) of the Order for Enforcement of the Income Tax Act after amendment (hereinafter referred to as the "New Order") apply to the termination of the trust or partial cancellation of the trust contract, prescribed in that paragraph, of Investment Trusts, etc. prescribed in that paragraph on or after the day on which this Cabinet Order comes into effect (hereinafter referred to as the "Effective Date"), and the provisions then in force continue to govern the termination of the Securities Investment Trust or partial cancellation of the Securities Investment Trust contract, prescribed in that paragraph, of an Open-Ended Securities Investment Trust under Article 59, paragraph (1) (Revenue Pertaining to Distributions of Proceeds of Investment Trusts, etc.) of the Order for Enforcement of the Income Tax Act prior to amendment (hereinafter referred to as the "Former Order"), and the termination of the trust or partial cancellation of the trust contract, prescribed in paragraph (2) of that Article, of Investment Trusts, etc. prescribed in that paragraph, before the Effective Date.

The provisions of Article 73, paragraphs (1) and (2) (Requirements for Specified Retirement Allowance Mutual Aid Organizations) and Article 74, paragraph (1) (Approval of Specified Retirement Allowance Mutual Aid Organizations) of the New Order apply to cases where a corporation referred to in Article 74, paragraph (1) of the New Order submits the written application under that paragraph (including the case where it applies mutatis mutandis under paragraph (6) of that Article) on or after the Effective Date, and the provisions then in force continue to govern cases where a corporation referred to in Article 74, paragraph (1) (Approval of Specified Retirement Allowance Mutual Aid Organizations) of the Former Order submitted the written application under that paragraph (including the case where it applies mutatis mutandis under paragraph (6) of that Article) before the Effective Date.

①In the case where an individual (hereinafter in this Article referred to as the "person applying a former valuation method") who has selected, for the calculation of the assessed value of Inventory for 2009, the cost method based on the acquisition price calculated by the last-in first-out method listed in Article 99, paragraph (1), item (i), (c) (Methods of Valuation of Inventory Assets) of the Former Order or the simple average method listed in (f) of that item (including the lower of cost or market method listed in item (ii) of that paragraph that is based on the value assessed by that cost method; hereinafter in this Article referred to as the "former valuation method") has selected a former valuation method for the calculation of the assessed value of Inventory (excluding, in the case where on December 31, 2010 a method listed in the items of Article 99, paragraph (1) (Methods of Valuation of Inventory) of the New Order (hereinafter in this Article referred to as the "new valuation method") has been selected for Inventory belonging to that type of business and category of assets, or the approval under Article 99-2, paragraph (1) (Special Methods of Valuation of Inventory Assets) of the New Order has been received, that Inventory) belonging to the type of business and category of assets for which that selection was made (meaning the type of business and category of assets prescribed in Article 100, paragraph (1) (Selection of Methods of Valuation of Inventory Assets) of the New Order; the same applies hereinafter in this Article) that the person holds on December 31, 2010 (if the person applying a former valuation method dies or has an Absence From Japan in the middle of the year, at the time of the death or Absence From Japan), the provisions of Article 99 of the Former Order (limited to the part pertaining to paragraph (1), item (i), (c) and (f)) remain in force with regard to the calculation of the assessed value of the Inventory so selected for 2010.

②In the case where a person applying a former valuation method seeks to change to a new valuation method the valuation method selected for the calculation of the assessed value of Inventory (limited to Inventory belonging to the type of business and category of assets for which a former valuation method has been selected) for 2010 or 2011, if the person submits to the competent district director with jurisdiction over the place for tax payment, by the Filing Deadline for income tax for each year for which the person seeks to make the change, a written notice stating that fact and the particulars specified by Ministry of Finance Order prescribed in Article 101, paragraph (2) (Procedures for Changing Methods of Valuation of Inventory Assets) of the New Order, that written notice is deemed to be the written application under that paragraph, and the submission of that written notice is deemed to constitute the approval under paragraph (1) of that Article.

③Where a person applying a former valuation method falls under any of the cases listed in the following items, the provisions of Article 102, paragraph (1) (Statutory Methods of Valuation of Inventory) of the New Order apply, treating the person as not having selected a valuation method for the calculation of the assessed value of the Inventory prescribed in each of those items for the year specified in that item:

④In the case where, with regard to the calculation of the assessed value for 2010 or 2011 of Inventory held by a person applying a former valuation method (limited to Inventory belonging to the type of business and category of assets for which a former valuation method has been selected), the person changes the valuation method to a new valuation method pursuant to Article 101 of the New Order or paragraph (2), or receives the approval under Article 99-2, paragraph (1) of the New Order (including the case where the provisions of the preceding paragraph apply), and the assessed value of that Inventory on December 31 of the year in which the person made the change or received the approval (in the case where the provisions of the preceding paragraph apply, the year to which the provisions of that paragraph apply; hereinafter in this paragraph referred to as the "year of change"), calculated by the valuation method after the change or the valuation method pertaining to the approval (in the case where the provisions of the preceding paragraph apply, the valuation method prescribed in Article 102, paragraph (1) of the New Order; hereinafter in the following paragraph referred to as the "valuation method after the change") exceeds the assessed value that would be calculated by the valuation method before the change or the valuation method before the approval (in the case where the provisions of the preceding paragraph apply, the valuation method that had been selected; hereinafter in the following paragraph referred to as the "valuation method before the change"), the amount obtained by deducting, from the amount of the excess (hereinafter in this Article referred to as the "valuation change adjustment amount"), the amount calculated by dividing that valuation change adjustment amount by seven is to be included in necessary expenses in the calculation of the amount of business income for the year of change of that person applying a former valuation method.

⑤The provisions of the preceding paragraph apply only where documents stating the assessed value calculated by the valuation method after the change and the assessed value calculated by the valuation method before the change for the Inventory to which the person seeks to have the provisions of that paragraph applied, and other particulars specified by Ministry of Finance Order, are attached to the Tax Return for the year for which the person seeks to have the provisions of that paragraph applied. In this case, the amount to be included in necessary expenses pursuant to the provisions of that paragraph is limited to the amount calculated on the basis of the amounts stated as those assessed values.

⑥Even where a Tax Return is filed to which the documents referred to in the preceding paragraph are not attached with respect to all or part of the amount to be included in necessary expenses pursuant to the provisions of paragraph (4), the district director may, if the district director finds that there were unavoidable circumstances for the failure to attach those documents, apply the provisions of paragraph (4) to the amount for which those documents were not attached.

⑦An individual to whom the provisions of paragraph (4) have applied is to include, in gross revenue in the calculation of the amount of business income for each year on or after the year following the year in which those provisions applied, the amount listed in item (i) (or, where that year is the year that includes the date on which the individual transferred or discontinued the whole of the business pertaining to Inventory belonging to the same type of business and category of assets as the Inventory to which the provisions of that paragraph applied (hereinafter in this paragraph referred to as "applicable assets"), or the date on which the individual ceased to hold all of the applicable assets, or where the amount listed in item (i) exceeds the amount listed in item (ii), the amount listed in item (ii)).