Income Tax Act

If grounds as set forth in the items of Article 19, paragraph (1) or the items of paragraph (2) of that Article (Amended Returns) of the Act on General Rules for National Taxes arise with regard to the income tax for the year that includes the date of a departure from Japan as prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains and Similar Income upon Departure from Japan) because the gross income for the year of a Tax Return or determination includes the amount of income from transfers of Securities and similar interests as prescribed in paragraph (6) of that Article to which the main clause of paragraph (6) of that Article (including when applied pursuant to paragraph (7) of that Article) applies, a person who has filed that Tax Return, or has been subject to that determination, for the income tax for that year (including that person's heir) may file an Amended Return with the district director, but only within four months from the date on which a case set forth in any of the items of Article 60-2, paragraph (6) arises.

With regard to the application of the provisions of the Act on General Rules for National Taxes if an Amended Return has been filed under the preceding paragraph, the term "statutory Tax Return due date" in Article 70, paragraph (1) (Time Limit for Reassessment and Determination, etc. of National Tax) of that Act and the term "statutory payment due date" in Article 72, paragraph (1) (Extinctive Prescription of the Right to Collect National Tax) of that Act are deemed to be replaced with "the date on which an Amended Return was filed pursuant to Article 151-2, paragraph (1) (Special Provisions on Amended Returns If a Person Who Has Made a Departure from Japan Returns to Japan or in Similar Cases) of the Income Tax Act".

If grounds as set forth in the items of Article 19, paragraph (1) or the items of paragraph (2) of that Article (Amended Returns) of the Act on General Rules for National Taxes arise with regard to the income tax for the year that includes the date of the gift or the date of commencement of the succession because the gross income for the year of a Tax Return or determination includes the amount of business income, capital gains, or miscellaneous income from the transfer of Securities and similar interests as prescribed in Article 60-3, paragraph (1) (Special Provisions on Capital Gains and Similar Income If Assets Are Transferred to a Nonresident by Gift or Similar Means), the amount of business income or miscellaneous income from the settlement of unsettled margin transactions or similar transactions as prescribed in paragraph (2) of that Article, or the amount of business income or miscellaneous income from the settlement of unsettled derivatives transactions as prescribed in paragraph (3) of that Article, to which the first sentence of paragraph (6) of that Article (including when applied pursuant to paragraph (7) of that Article) applies, a person who has filed that Tax Return, or has been subject to that determination, for the income tax for the year that includes the date on which those Securities and similar interests or contracts for those unsettled margin transactions or similar transactions or unsettled derivatives transactions were transferred to a Nonresident by gift, inheritance, or bequest (including that person's heir) may file an Amended Return with the district director, but only within four months from the date on which a case set forth in any of the items of Article 60-3, paragraph (6) arises.

With regard to the application of the provisions of the Act on General Rules for National Taxes if an Amended Return has been filed under the preceding paragraph, the term "statutory Tax Return due date" in Article 70, paragraph (1) (Time Limit for Reassessment and Determination, etc. of National Tax) of that Act and the term "statutory payment due date" in Article 72, paragraph (1) (Extinctive Prescription of the Right to Collect National Tax) of that Act are deemed to be replaced with "the date on which an Amended Return was filed pursuant to Article 151-3, paragraph (1) (Special Provisions on Amended Returns If a Nonresident Donee or Similar Person Returns to Japan or in Similar Cases) of the Income Tax Act".

If a Resident has transferred Securities and similar interests as prescribed in Article 60-2, paragraph (1) (Special Provisions on Capital Gains and Similar Income upon Departure from Japan) that the Resident acquired by inheritance or bequest, and, on or after the date of the transfer, the circumstances come to fall under any of the cases set forth in the following items because the main clause of paragraph (6) of that Article (including when applied pursuant to paragraph (7) of that Article; the same applies in the following paragraph) or the first sentence of Article 60-3, paragraph (6) (Special Provisions on Capital Gains and Similar Income If Assets Are Transferred to a Nonresident by Gift or Similar Means) (including when applied pursuant to paragraph (7) of that Article; the same applies in the following paragraph) has been applied, or because an Amended Return has been filed under Article 151-6, paragraph (1) (Special Provisions on Amended Returns upon Division of the Estate or Similar Event) or a Reassessment has been made based on a request for Reassessment under Article 153-5 (Special Provisions on Requests for Reassessment upon Division of the Estate or Similar Event) (including a determination or ruling on an appeal, or a judgment in a lawsuit, concerning a disposition on that request; the same applies in this paragraph, the following paragraph, and Article 153-4 (Special Provisions on Requests for Reassessment If the Acquisition Cost of Securities and Similar Interests Acquired by Inheritance Changes or in Similar Cases)), with regard to the income tax of the decedent involved in that inheritance or bequest for the year that includes the date of commencement of the succession, and grounds as set forth in the items of Article 19, paragraph (1) or the items of paragraph (2) of that Article (Amended Returns) of the Act on General Rules for National Taxes arise with regard to the Resident's income tax for the year that includes the date of the transfer, the Resident (including the Resident's heir) must file an Amended Return for the income tax for the year that includes the date of the transfer within four months from the date specified in the relevant item, and must pay the amount of tax payable as a result of filing that return within that time limit:

if, as a result of the application of the proviso to Article 60-2, paragraph (4), the amount to be deducted as necessary expenses or acquisition cost in calculating the amount of business income, capital gains, or miscellaneous income from the transfer of the Securities and similar interests has decreased: the date on which an Amended Return was filed under Article 151-2, paragraph (1) (Special Provisions on Amended Returns If a Person Who Has Made a Departure from Japan Returns to Japan or in Similar Cases) for the income tax of the decedent, or the date on which a Reassessment was made based on a request for Reassessment under Article 153-2, paragraph (1) (Special Provisions on Requests for Reassessment If a Person Who Has Made a Departure from Japan Returns to Japan or in Similar Cases);

if, because the proviso to Article 60-3, paragraph (4) has been applied or the main clause of that paragraph has ceased to apply, the amount to be deducted as necessary expenses or acquisition cost in calculating the amount of business income, capital gains, or miscellaneous income from the transfer of the Securities and similar interests has decreased: the date on which an Amended Return was filed under paragraph (1) of the preceding Article or Article 151-6, paragraph (1) for the income tax of the decedent, or the date on which a Reassessment was made based on a request for Reassessment under Article 153-3, paragraph (1) (Special Provisions on Requests for Reassessment If a Nonresident Donee or Similar Person Returns to Japan or in Similar Cases) or Article 153-5.

If a Resident has settled unsettled margin transactions or similar transactions as prescribed in Article 60-2, paragraph (2) or unsettled derivatives transactions as prescribed in paragraph (3) of that Article, the contracts for which the Resident received by inheritance or bequest, and, on or after the date of the settlement, the circumstances come to fall under any of the cases set forth in the following items because the main clause of paragraph (6) of that Article or the first sentence of Article 60-3, paragraph (6) has been applied, or because an Amended Return has been filed under Article 151-6, paragraph (1) or a Reassessment has been made based on a request for Reassessment under Article 153-5, with regard to the income tax of the decedent involved in that inheritance or bequest for the year that includes the date of commencement of the succession, and grounds as set forth in the items of Article 19, paragraph (1) or the items of paragraph (2) of that Article of the Act on General Rules for National Taxes arise with regard to the Resident's income tax for the year that includes the date of the settlement, the Resident (including the Resident's heir) must file an Amended Return for the income tax for the year that includes the date of the settlement within four months from the date specified in the relevant item, and must pay the amount of tax payable as a result of filing that return within that time limit:

if, as a result of the application of the proviso to Article 60-2, paragraph (4), the amount equivalent to the amount of profit to be subtracted in calculating the amount of business income or miscellaneous income from the settlement of the unsettled margin transactions or similar transactions or unsettled derivatives transactions has decreased: the date on which an Amended Return was filed under Article 151-2, paragraph (1) for the income tax of the decedent, or the date on which a Reassessment was made based on a request for Reassessment under Article 153-2, paragraph (1);

if, because the proviso to Article 60-3, paragraph (4) has been applied or the main clause of that paragraph has ceased to apply, the amount equivalent to the amount of profit to be subtracted in calculating the amount of business income or miscellaneous income from the settlement of the unsettled margin transactions or similar transactions or unsettled derivatives transactions has decreased: the date on which an Amended Return was filed under paragraph (1) of the preceding Article or Article 151-6, paragraph (1) for the income tax of the decedent, or the date on which a Reassessment was made based on a request for Reassessment under Article 153-3, paragraph (1) or Article 153-5.

If the circumstances come to fall under a case set forth in any of the items of paragraph (1) or any of the items of the preceding paragraph and no Amended Return is filed, the competent district director for the locality in which the taxpayer pays taxes makes a Reassessment of the amount of income, the amount of income tax, and the other information that should have been indicated in that return.

The provisions of the Act on General Rules for National Taxes apply to an Amended Return under paragraph (1) or paragraph (2) and to a Reassessment under the preceding paragraph as follows:

an Amended Return that is filed within the deadline for filing prescribed in paragraph (1) or paragraph (2) is deemed to be a return filed by the due date as prescribed in Article 17, paragraph (2) (Filing of a Return by the Due Date) of the Act on General Rules for National Taxes, except when Article 20 (Effect of Amended Return) of that Act is applied;

for an Amended Return that is filed after the deadline for filing prescribed in paragraph (1) or paragraph (2) and for the Reassessment, the terms "statutory Tax Return due date" and "statutory payment due date" in the provisions of Chapters II through VII (Determination of National Tax Liability and Related Matters) of the Act on General Rules for National Taxes are deemed to be replaced with "the deadline for filing an Amended Return prescribed in Article 151-4, paragraph (1) or paragraph (2) (Special Provisions on Amended Returns If the Acquisition Cost of Securities and Similar Interests Acquired by Inheritance Changes or in Similar Cases) of the Income Tax Act", the term "return filed by the due date" in Article 61, paragraph (1), item (i) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax) of that Act is deemed to be replaced with "Tax Return as prescribed in Article 2, paragraph (1), item (xxxvii) (Definitions) of the Income Tax Act", the phrase "return filed by the due date or return filed after the deadline" in paragraph (2) of that Article is deemed to be replaced with "Amended Return under Article 151-4, paragraph (1) or paragraph (2) (Special Provisions on Amended Returns If the Acquisition Cost of Securities and Similar Interests Acquired by Inheritance Changes or in Similar Cases) of the Income Tax Act", and the term "return filed by the due date" in Article 65, paragraph (1), paragraph (3), item (ii), and paragraph (5), item (ii) (Penalty Tax for Understatement) of that Act is deemed to be replaced with "Tax Return as prescribed in Article 2, paragraph (1), item (xxxvii) (Definitions) of the Income Tax Act";

Article 61, paragraph (1), item (ii) and Article 66 (Penalty Tax for Failure to File) of the Act on General Rules for National Taxes do not apply to the Amended Return and Reassessment prescribed in the preceding item.