Income Tax Act

The heir of a Resident who has newly come to meet the requirements under which a return must be filed under Article 125, paragraph (1) (Filing a Tax Return If the Taxpayer Has Died Partway Through the Year) because 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) has been applied due to a division of the estate or similar event as prescribed in paragraph (1) of the following Article (hereinafter referred to as a "division of the estate or similar event" in this Article) that occurred after the deadline for filing a return under Article 125, paragraph (1) must file a return filed after the deadline for the year that includes the date of the Resident's death within four months from the date on which the division of the estate or similar event occurred, and must pay the amount of tax payable as a result of filing that return filed after the deadline within that time limit.

The heir of a Resident who has newly come to meet the requirements under which a return may be filed under Article 125, paragraph (2) because Article 60-3, paragraph (1) has been applied due to the occurrence of a division of the estate or similar event may file a return under that paragraph for the year that includes the date of the Resident's death after the division of the estate or similar event has occurred.

The heir of a Resident who has newly come to meet the requirements under which a return may be filed under Article 125, paragraph (3) because Article 60-3, paragraph (1) has been applied due to a division of the estate or similar event that occurred after the deadline for filing a return under Article 125, paragraph (3) may file a return filed after the deadline for the year that includes the date of the Resident's death.

If a person who is required to file a return filed after the deadline pursuant to paragraph (1) does not file that return filed after the deadline, the competent district director for the locality in which the taxpayer pays taxes makes a determination of the amount of income, the amount of income tax, and the other information that should have been indicated in that return filed after the deadline.

The provisions of the Act on General Rules for National Taxes apply to a return filed after the deadline under paragraph (1) and to a determination under the preceding paragraph as follows:

a return filed after the deadline that is filed within the deadline for filing prescribed in paragraph (1) 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;

for a return filed after the deadline that is filed after the deadline for filing prescribed in paragraph (1) and for the determination, 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 a return filed after the deadline prescribed in Article 151-5, paragraph (1) (Special Provisions on Returns Filed after the Deadline and Similar Matters upon Division of the Estate or Similar Event) of the Income Tax Act".

The right to claim from the national government a refund arising from the filing of a return under the provisions of paragraphs (1) through (3) is extinguished by prescription if it is not exercised for five years from the date on which the division of the estate or similar event occurred.

If, due to any of the following events that has occurred with regard to a Resident to whom the provisions of Article 60-3, paragraphs (1) through (3) (Special Provisions on Capital Gains and Similar Income If Assets Are Transferred to a Nonresident by Gift or Similar Means) have been applied for the income tax for the year that includes the date of commencement of the succession (hereinafter referred to as a "division of the estate or similar event" in this paragraph), there has been an increase or decrease in the Securities and similar interests as prescribed in paragraph (1) of that Article, or contracts for unsettled margin transactions or similar transactions as prescribed in paragraph (2) of that Article or unsettled derivatives transactions as prescribed in paragraph (3) of that Article (referred to as "covered assets" in item (i)), involved in the inheritance or bequest that were transferred to a Nonresident, and as a result 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 commencement of the succession, the Resident's heir must file an Amended Return for the income tax for the year that includes the date of commencement of the succession within four months from the date on which the division of the estate or similar event occurred, and must pay the amount of tax payable as a result of filing that return within that time limit:

where the provisions of Article 60-3, paragraphs (1) through (3) had been applied on the basis that covered assets involved in an inheritance or bequest had been transferred to Nonresidents in accordance with the shares in inheritance or the proportions of universal bequests under the provisions of the Civil Code (Act No. 89 of 1896) (excluding Article 904-2 (Contributory Portion)), the covered assets have subsequently been divided, and the covered assets transferred to Nonresidents by that division have come to differ from the covered assets treated as having been transferred to Nonresidents in accordance with those shares in inheritance or proportions of universal bequests;

a change in the heirs due to an affiliation, a judicial decision becoming final and binding concerning the disinheritance of an heir or the rescission of a disinheritance, under Article 787 (Action for Affiliation) or Articles 892 through 894 (Disinheritance of Presumptive Heirs and Related Matters) of the Civil Code, a recovery of inheritance as prescribed in Article 884 (Right to Claim Recovery of Inheritance) of that Code, the rescission of a renunciation of inheritance under Article 919, paragraph (2) (Withdrawal and Rescission of Acceptance and Renunciation of Inheritance) of that Code, or any other event;

the discovery of a will concerning a bequest, or the renunciation of a bequest;

the occurrence of an event specified by Cabinet Order as equivalent to the events prescribed in the preceding three items.

If the circumstances come to fall under 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 Article 151-4, paragraph (4) (Special Provisions on Amended Returns If the Acquisition Cost of Securities and Similar Interests Acquired by Inheritance Changes or in Similar Cases) apply mutatis mutandis to an Amended Return under paragraph (1) or a Reassessment under the preceding paragraph. In such a case, the phrase "the deadline for filing prescribed in paragraph (1) or paragraph (2)" in paragraph (4), items (i) and (ii) of that Article is deemed to be replaced with "the deadline for filing prescribed in Article 151-6, paragraph (1) (Special Provisions on Amended Returns upon Division of the Estate or Similar Event)", and the phrase "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)" in item (ii) of that paragraph is deemed to be replaced with "Article 151-6, paragraph (1) (Special Provisions on Amended Returns upon Division of the Estate or Similar Event)".