Article 46Withdrawal of Payment in Kind

②A person who intends to apply for the withdrawal of payment in kind under the preceding paragraph must submit to the competent district director with jurisdiction over the place for tax payment a written application stating the reason for which the person seeks approval of that withdrawal and other particulars specified by Ministry of Finance Order.

③If a written application has been submitted pursuant to the preceding paragraph, the district director is to investigate whether the applicant and the matters concerning the application fall under paragraph (1), and, based on that investigation, is to approve the application or reject it within three months from the day following the day on which the written application was submitted.

④In the case referred to in the preceding paragraph, if an application for withdrawal of payment in kind is made for part of two or more items of real property for which permission for payment in kind was granted, or if the real property for which permission for payment in kind was granted is one item and an application for withdrawal of payment in kind is made for part of it after dividing it (limited to the case where, among the property for payment in kind other than the property for which those applications were made, there is property specified by Cabinet Order as unsuitable for management or disposal as a result of that withdrawal of payment in kind (referred to as "unsuitable property" in this Article)), the district director may request that the unsuitable property be added to the property subject to the application for withdrawal of payment in kind, and may approve that withdrawal or reject the application under that paragraph after the applicant adds the unsuitable property to that property. In this case, with regard to the application of that paragraph, the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (6) was issued".

⑤In the case referred to in paragraph (3), if, among the inheritance tax subject to the withdrawal of payment in kind, there is inheritance tax to be paid in a lump sum in money or beneficial expenses under paragraph (9) to be paid, the district director may approve the withdrawal of payment in kind under paragraph (3) or reject the application for withdrawal of payment in kind after that inheritance tax and those beneficial expenses are paid in full within one month from the day following the day on which the notice under paragraph (10) was issued. In this case, with regard to the application of paragraph (3), the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "two months from the day following the day on which the notice under paragraph (10) was issued".

⑥When the district director approves the withdrawal of payment in kind under paragraph (3), rejects the application for that withdrawal, or requests under paragraph (4) the addition of unsuitable property to the property subject to that application, the district director is to notify the applicant of it by a document stating the matters prescribed in each of the following items according to the case classification set forth in that item:

⑦If a request has been made for the addition of unsuitable property to the property subject to the application for withdrawal of payment in kind under paragraph (4), and the applicant does not comply with the request within 20 days from the day following the day on which the applicant received the notice under the preceding paragraph (limited to item (iii)) (or, if the district director finds that there are unavoidable circumstances preventing the applicant from complying with the request within that period, by the day designated by the district director), the applicant is deemed to have withdrawn the application.

⑧With regard to the application of paragraph (3) in the case where the district director finds that there are unavoidable circumstances as prescribed in the preceding paragraph, the phrase "three months from the day following the day on which the written application was submitted" in that paragraph is deemed to be replaced with "one month from the day following the day designated by the district director under paragraph (7)".

⑨A person who intends to receive approval of the withdrawal of payment in kind under paragraph (3) must pay money equivalent to the amount of beneficial expenses, if any, that the State has expended for the property subject to that withdrawal; provided, however, that this does not apply if the approval could not be received for that property.

⑩If the district director approves the withdrawal of payment in kind under paragraph (3) and, among the inheritance tax subject to that withdrawal, there is inheritance tax to be paid in a lump sum in money or beneficial expenses under the preceding paragraph to be paid, the district director is to notify the applicant of it in advance by a document stating the amount of that inheritance tax and the amount of those beneficial expenses. In this case, if the applicant does not pay in full the inheritance tax and the beneficial expenses subject to the notice within one month from the day following the day on which the notice was issued, the applicant is deemed to have withdrawn the application for that withdrawal.

⑪If the district director neither approves the withdrawal of payment in kind nor rejects the application within the period prescribed in paragraph (3) (or, if paragraph (4), paragraph (5) or paragraph (8) is applicable, within the period prescribed in paragraph (3) as applied with the terms replaced pursuant to those provisions), the withdrawal is deemed to have been approved.

⑫In addition to what is provided for in the preceding paragraphs, other particulars necessary for procedures concerning the withdrawal of payment in kind are specified by Cabinet Order.