①If the amount of income tax collected pursuant to the provisions of Articles 199 through 202 (Withholding from Retirement Income) of the former Act from severance pay or other such compensation payable during 1971 that was paid before the effective date exceeds the amount of income tax that would result if Article 201 and Article 202 of the new Act, as deemed to be replaced pursuant to Article 3, paragraph (2) (Special Provisions on Income Deductions, etc. and Calculation of Tax Amounts for Income Tax for 1971) of the Supplementary Provisions, were applied to that severance pay or other such compensation, the Resident who received payment of that severance pay or other such compensation may, pursuant to Cabinet Order, request the competent district director for the locality in which the Resident pays taxes to refund the excess amount by December 31 of that year.

②If a request for a refund under the preceding paragraph has been made with respect to the severance pay or other such compensation prescribed in that paragraph, with regard to the application of the provisions concerning the filing of returns, Reassessment or determination, payment, collection (excluding withholding from severance pay or other such compensation), and refunds (excluding the refund pertaining to that request) for that Resident's income tax for 1971, and the application of Article 201, paragraph (1), item (ii) of the new Act, as deemed to be replaced pursuant to Article 3, paragraph (2) of the Supplementary Provisions, to severance pay or other such compensation payable during that year that is paid on or after the effective date, income tax is deemed to have been collected, with respect to the severance pay or other such compensation pertaining to that request, in the amount arrived at when the amount to be refunded pursuant to that request is deducted from the amount of income tax collected pursuant to the provisions of Articles 199 through 202 of the former Act.

③When calculating the interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes for a refund under paragraph (1), the period under that paragraph that forms the basis for that calculation is the period from the day following the day on which one month has elapsed from the day on which the request for a refund under paragraph (1) was made, until the day of the decision to pay the refund or the day on which Appropriation of the refund is made (or, if Appropriation became possible before that day, the day on which it became possible to make the Appropriation).