①Where there are acts or calculations of a family company, etc. that, if allowed, are found to result in an unreasonable reduction of the burden of inheritance tax or gift tax of its shareholders or members, or their relatives or other persons having a special relationship specified by Cabinet Order with those persons, the district director may, upon making a reassessment or determination of inheritance tax or gift tax, calculate the taxable value as the district director finds appropriate, notwithstanding those acts or calculations.

②The provisions of the preceding paragraph apply mutatis mutandis to a reassessment or determination relating to the inheritance tax or gift tax of a shareholder or member of a family company, etc., or a relative of that shareholder or member or other person having the special relationship prescribed in the preceding paragraph with them, in the case where Article 132, paragraph (1) (Rejection of Acts or Calculations by Family Companies) of the Corporation Tax Act, Article 157, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Income Tax Act or Article 32, paragraph (1) (Negation of Actions or Calculations by a Family Company, etc.) of the Land-holding Tax Act (Act No. 69 of 1991) has been applied to the acts or calculations of that family company, etc.

③"Family company, etc." in the preceding two paragraphs means a family company prescribed in Article 2, item (x) (Definitions) of the Corporation Tax Act or a corporation listed in Article 157, paragraph (1), item (ii) of the Income Tax Act.

④Where there are acts or calculations of a corporation that has carried out a merger, company split, contribution in kind, distribution in kind prescribed in Article 2, item (xii)-5-2 of the Corporation Tax Act, share exchange, etc. prescribed in item (xii)-16 of that Article, or share transfer (referred to as "merger, etc." in this paragraph), or of a corporation that has received a transfer of assets and liabilities through a merger, etc. (including the corporation that issued the shares or capital contributions delivered through that merger, etc.; the same applies hereinafter in this paragraph), that, if allowed, are found to result in an unreasonable reduction of the burden of inheritance tax or gift tax of the shareholders or members of the corporation that carried out that merger, etc. or the corporation that received the transfer of assets and liabilities through that merger, etc., or of persons having a special relationship specified by Cabinet Order with those persons, the district director may, upon making a reassessment or determination of inheritance tax or gift tax, calculate the taxable value as the district director finds appropriate, notwithstanding those acts or calculations.

⑤In the case of applying the preceding paragraphs to a trustee of a trust subject to corporate taxation (meaning a trust subject to corporate taxation prescribed in Article 2, item (xxix)-2 of the Corporation Tax Act; the same applies hereinafter in this paragraph) or to the beneficiaries, etc. prescribed in Article 9-2, paragraph (1), the following apply:

①If property is given by gift or bequest to a corporation with no provision for equity interests (including a corporation with a provision for equity interests that has no holder of an equity interest; the same applies in the following Article) that confers special benefits, as to the use of its facilities, the investment of its surplus funds, the vesting of its property upon dissolution and the like, on its founder, a member, a director, an auditor or a councillor, a person who has made a gift or bequest to that corporation, or a relative of any of these persons or other person who has a special relationship prescribed in paragraph (1) of the preceding Article with any of these persons, then, except where paragraph (4) of the following Article applies, at the time of that gift or bequest of property, the person who receives special benefits from that corporation is deemed to have acquired, by gift or bequest from the person who made the gift or bequest of that property, an amount equivalent to the value of the benefit received by that person through the gift or bequest of that property (excluding property set forth in Article 12, paragraph (1), item (iii) or Article 21-3, paragraph (1), item (iii)).

②The provisions of Article 12, paragraph (2) apply mutatis mutandis to the case where there is a ground prescribed in Article 12, paragraph (2) with regard to property set forth in paragraph (1), item (iii) of that Article or Article 21-3, paragraph (1), item (iii) that has been acquired by the corporation with no provision for equity interests prescribed in the preceding paragraph.

③The provisions of the preceding two paragraphs apply mutatis mutandis, in the case where a corporation with no provision for equity interests prescribed in paragraph (1) is established, to the benefit received by a person who receives special benefits from that corporation through the establishment of that corporation.

④The scope of persons who receive special benefits from a corporation set forth in paragraph (1), the content of the special benefits received from a corporation, and other particulars necessary for the application of that paragraph are specified by Cabinet Order.

①If property is given by gift or bequest to an association or foundation without legal personality for which a representative or administrator is prescribed, that association or foundation is deemed to be an individual and gift tax or inheritance tax is imposed on it. In this case, with regard to property acquired by gift, the total amount of gift tax calculated for each different donor, on the assumption that the property was acquired from only each one of those donors, is the amount of gift tax to be paid by that association or foundation.

②The provisions of the preceding paragraph apply mutatis mutandis to the case where property is contributed for the purpose of establishing the association or foundation prescribed in that paragraph.

③In the cases referred to in the preceding two paragraphs, with regard to the application of Article 1-3 or Article 1-4, the domicile of the association or foundation prescribed in paragraph (1) is deemed to be at the location of its principal business office or office.

④The provisions of the preceding three paragraphs apply mutatis mutandis to the case where property is given by gift or bequest to a corporation with no provision for equity interests and it is found that, by that gift or bequest, the burden of inheritance tax or gift tax on a relative of the person who made that gift or bequest or other person who has a special relationship prescribed in Article 64, paragraph (1) with any of these persons would be unjustly decreased. In this case, the phrase "an association or foundation without legal personality for which a representative or administrator is prescribed" in paragraph (1) is deemed to be replaced with "a corporation with no provision for equity interests", the phrase "that association or foundation" with "that corporation", and the phrase "association or foundation" in paragraphs (2) and (3) with "corporation with no provision for equity interests".

⑤If paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2)) or the preceding paragraph applies, with regard to the amount of gift tax or inheritance tax imposed by those provisions on the association or foundation set forth in paragraph (1) or (2) or the corporation with no provision for equity interests set forth in the preceding paragraph, an amount equivalent to the amount of corporation tax and other taxes to be imposed on those associations or foundations or that corporation with no provision for equity interests is deducted, as provided by Cabinet Order.

⑥The determination of whether it is found that the burden of inheritance tax or gift tax would be unjustly decreased as referred to in paragraph (4), and other particulars necessary for the application of that paragraph are specified by Cabinet Order.

①If a person who is a director of a general incorporated association or similar corporation (including a person for whom five years have not elapsed since the day on which the person ceased to be a director of that general incorporated association or similar corporation) dies, and that general incorporated association or similar corporation falls under a specified general incorporated association or similar corporation, inheritance tax is imposed on that specified general incorporated association or similar corporation, on the basis that it is deemed to be an individual and to have acquired by bequest from the deceased person (referred to as the "decedent" in this Article) an amount equivalent to the amount calculated by dividing the net asset amount of that specified general incorporated association or similar corporation at the time of the commencement of the succession of the decedent (meaning the amount specified by Cabinet Order as the amount obtained by deducting the total value of the debts it holds from the total value of the property it holds) by the number obtained by adding one to the number of family-related directors of that specified general incorporated association or similar corporation at that time (where there is a person who died at the same time as that decedent, and that person was, immediately before death, a family-related director or a person for whom five years had not elapsed since the day on which the person ceased to be a director of that specified general incorporated association or similar corporation, being a person who has a special relationship specified by Cabinet Order with that decedent, the number of such deceased persons is to be added).

②In this Article, the meanings of the terms set forth in the following items are as prescribed in those items:

③If inheritance tax is imposed on a specified general incorporated association or similar corporation pursuant to paragraph (1), from the amount of inheritance tax of that specified general incorporated association or similar corporation, the amounts of gift tax and inheritance tax imposed on that specified general incorporated association or similar corporation pursuant to paragraph (1) or (2) of the preceding Article as applied mutatis mutandis pursuant to paragraph (4) of that Article are deducted, as provided by Cabinet Order.

④With regard to the application of Article 1-3 where paragraph (1) applies, the domicile of the specified general incorporated association or similar corporation set forth in that paragraph is to be at the location of its principal office.

⑤If paragraph (1) applies, the provisions of Article 19, paragraph (1) do not apply to the value of property that the specified general incorporated association or similar corporation set forth in that paragraph acquired by gift from the decedent within seven years before the commencement of the succession of the decedent.

⑥The deadline for filing the return under Article 27, paragraph (1) in the case where inheritance tax is imposed on a specified general incorporated association or similar corporation pursuant to paragraph (1), and other particulars necessary for the application of paragraph (1) are specified by Cabinet Order.

A local government may not impose a surtax on inheritance tax or gift tax.

In addition to what is provided for in this Act, matters necessary for the succession to rights or obligations relating to tax payment under settlement taxation at inheritance and for the application of inheritance tax and gift tax are specified by Cabinet Order.