①If the district director finds that there are reasonable grounds where a written application has been submitted pursuant to Article 39, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (29) of that Article), the district director may grant a grace period for the collection of all or part of the inheritance tax or gift tax.

②The district director may rescind permission to defer payment if a person who has received that permission is in arrears on the amount subject to deferment (including an amount equivalent to interest tax or delinquent tax relating to that amount subject to deferment) or otherwise violates the conditions of deferment, if that person has not complied with an order under Article 51, paragraph (1) (Change to Security) of the Act on General Rules for National Taxes concerning the security for that amount subject to deferment, if compulsory liquidation procedures prescribed in Article 2, item (xii) (Definitions) of the National Tax Collection Act (Act No. 147 of 1959) have been commenced with respect to the property serving as security for that amount subject to deferment, or if a person who has received that permission dies and the heir makes a qualified acceptance. In this case, except where those compulsory liquidation procedures have been commenced and where a qualified acceptance has been made, the district director must hear that person's explanation in advance.

③If the district director has rescinded permission to defer payment pursuant to the preceding paragraph, the district director notifies the person liable for tax of that fact and the reasons by a document stating them.