Article 26Adjustment of Competition between National Tax and Local Tax, etc. and Private Claims

一Where there are the expenses or expenses for the delinquent tax collection procedure prescribed in Article 9 (Priority of Expenses of Compulsory Liquidation Procedure) or Article 10 (Priority of Direct Expenses for the Delinquent Tax Collection Procedure), the national tax prescribed in Article 11 (Priority of Consumption Tax, etc. in the Case of Compulsory Liquidation) (including local tax that has a priority right equivalent thereto under the provisions of the Local Tax Act), claims subject to the application of the provisions of Article 21 (Priority of Rights of Retention), claims subject to the application of the provisions of Article 59, paragraph (3) or (4) (Priority of Prepaid Rent) (including the case where applied mutatis mutandis pursuant to Article 71, paragraph (4) (Provisions Applied Mutatis Mutandis to Motor Vehicles, etc.)), or claims subject to the application of the provisions of Article 19 (Priority of Statutory Liens for Preservation of Real Property, etc.), the proceeds are to be applied to each of these in that order;

二With respect to the national tax, local tax, etc., and private claims (excluding those subject to the application of the provisions of the preceding item), the total amounts to be applied to the national tax, local tax, etc., and private claims are each determined by applying the provisions of this Chapter, the Local Tax Act, or other Acts in sequence, starting with the one whose statutory due date for tax payment, etc. (including the corresponding due date for payment, etc. of local tax or public charges) or whose time of creation, registration, transfer, or establishment is the earliest;

三The total amount to be applied to the national tax and local tax, etc. determined under the provisions of the preceding item is applied in sequence to the national tax and local tax, etc. in accordance with the provisions of Article 8 (Principle of Priority of National Tax) or Articles 12 through 14 (Priority of National Tax by Prior Seizure, etc.), or the provisions of the Local Tax Act or other Acts corresponding to these; and

四The total amount to be applied to the private claims determined under the provisions of item (ii) is applied in sequence to the private claims in accordance with the provisions of the Civil Code (Act No. 89 of 1896) and other Acts.