Act on Special Measures Concerning Taxation

In the case where the value of taxable inherited property prescribed in paragraph (1) of the preceding Article relating to a person who has received permission for deferred payment of the amount of inheritance tax under the provisions of Article 38, paragraph (1) of the Inheritance Tax Act includes the value of land located within a special green space conservation district under the provisions of Article 12 of the Urban Green Space Conservation Act, a special historic scenic beauty preservation district under the provisions of Article 6, paragraph (1) of the Act on Special Measures concerning Preservation of Traditional Scenic Beauty in Ancient Capitals, or any other district specified by Cabinet Order as equivalent thereto, with regard to the application of the provisions of Article 52, paragraph (1) of the Inheritance Tax Act to the portion of tax calculated pursuant to the provisions of Cabinet Order as corresponding to the value of that land, out of the amount of inheritance tax for which that permission for deferred payment was granted (referred to as the "tax on the portion for land in a special green space conservation district, etc." in the following paragraph), the phrase "6.6 percent per annum" in item (i) of that paragraph is deemed to be replaced with "4.2 percent per annum".

The provisions of Article 52, paragraph (3) of the Inheritance Tax Act apply mutatis mutandis to the case where the amount of inheritance tax for which permission for deferred payment has been granted includes both the tax on the portion for land in a special green space conservation district, etc. and the tax on the other portion.

A person seeking the application of the provisions of paragraph (1) must attach, to the written application prescribed in Article 39, paragraph (1) of the Inheritance Tax Act, a written statement of the land located within the district prescribed in paragraph (1) and other documents specified by Order of the Ministry of Finance, and submit it to the district director with jurisdiction over the place for tax payment.

The provisions of the preceding three paragraphs apply mutatis mutandis to the interest tax relating to the amount of inheritance tax to be paid under the permission for deferred payment by a person who has received that permission under the provisions of Article 44, paragraph (1) or Article 47, paragraph (1) of the Inheritance Tax Act and whose value of taxable inherited property prescribed in paragraph (1) includes the value of land prescribed in that paragraph.

Where the district director grants permission for deferred payment of the amount of inheritance tax under the provisions of Article 38, paragraph (1) of the Inheritance Tax Act, if the proportion of the total value of real property, depreciable assets prescribed in Article 2, paragraph (1), item (xix) of the Income Tax Act that had been used for the business of the decedent relating to that inheritance, and other property specified by Cabinet Order (referred to as the "value of real property, etc." hereinafter in this Article) in the value of taxable inherited property prescribed in Article 70-8-2, paragraph (1) is three-quarters or more, the district director may, upon application by the person liable for tax and notwithstanding the provisions of Article 38, paragraph (1) of the Inheritance Tax Act, set the deferred payment period for the portion of tax calculated pursuant to the provisions of Cabinet Order as corresponding to that value of real property, etc., out of the amount of inheritance tax for which that deferred payment is permitted (referred to as the "tax amount attributable to real property, etc." in the following paragraph and paragraph (3)), at a period within 20 years (or, if the deferred tax amount prescribed in that paragraph is less than 2,000,000 yen, within the number of years equivalent to the number obtained by dividing that deferred tax amount by 100,000 yen (or, if that number has a fraction of less than one, the number with that fraction counted as one)).

In the case where the proportion of the value of real property, etc. in the value of taxable inherited property prescribed in the preceding paragraph is three-quarters or more, with regard to the application of the provisions of Article 52, paragraph (1) of the Inheritance Tax Act to the tax amount attributable to real property, etc. out of that deferred tax amount, the phrase "5.4 percent per annum" in item (i), (a) of that paragraph is deemed to be replaced with "3.6 percent per annum".

The provisions of Article 52, paragraph (3) of the Inheritance Tax Act apply mutatis mutandis to the case where the amount of inheritance tax for which permission for deferred payment has been granted includes both the tax amount attributable to real property, etc. and the tax on the other portion.

A person seeking the application of the provisions of paragraph (1) or (2) must attach, to the written application prescribed in Article 39, paragraph (1) of the Inheritance Tax Act, a written statement of the real property, depreciable assets and other property prescribed in paragraph (1), and submit it to the district director with jurisdiction over the place for tax payment.

The provisions of the preceding paragraphs apply mutatis mutandis to the deferred payment and interest tax relating to the amount of inheritance tax to be paid under the permission for deferred payment by a person who has received that permission under the provisions of Article 44, paragraph (1) or Article 47, paragraph (1) of the Inheritance Tax Act and for whom the proportion of the value of real property, etc. in the value of taxable inherited property prescribed in paragraph (1) is three-quarters or more.

With regard to the application of the provisions of Article 52, paragraph (1) of the Inheritance Tax Act to the amount of inheritance tax for which permission for deferred payment has been granted (excluding the amount of inheritance tax to which the provisions of Article 70-8-2, paragraph (3), Article 70-9, paragraph (1) or paragraph (2) of the preceding Article have been applied) relating to a person who has received permission for deferred payment of the amount of inheritance tax under the provisions of Article 38, paragraph (1), Article 44, paragraph (1) or Article 47, paragraph (1) of that Act, the phrase "6.6 percent per annum" in item (i) of that paragraph is deemed to be replaced with "6 percent per annum", the phrase "5.4 percent per annum" in (a) of that item with "3.6 percent per annum", the phrase "6 percent per annum" in (a) of that item with "5.4 percent per annum", and the phrase "5.4 percent per annum" in (b) of that item with "4.8 percent per annum".

In the case where a person liable for tax prescribed in Article 41, paragraph (1) of the Inheritance Tax Act intends to apply for permission for payment in kind under the provisions of that paragraph, Article 45, paragraph (1) or Article 48-2, paragraph (1) of that Act (referred to as "permission for payment in kind" in this paragraph), if the property to be used for that payment in kind is a registered artwork prescribed in Article 2, item (iii) of the Act on Public Display of Art at Museums (Act No. 99 of 1998) (limited to one that had already received the registration prescribed in Article 3, paragraph (1) of that Act at the time of the commencement of the succession relating to the application for that permission for payment in kind; referred to as a "specified registered artwork" in this paragraph and the following paragraph), the district director may, upon application by that person liable for tax, grant permission for payment in kind for that specified registered artwork, notwithstanding the provisions of Article 41, paragraph (5) of the Inheritance Tax Act (including as applied mutatis mutandis pursuant to Article 45, paragraph (2) or Article 48-2, paragraph (6) of that Act).

A person seeking the application of the provisions of the preceding paragraph must attach, to the written application prescribed in Article 42, paragraph (1) (including as applied mutatis mutandis pursuant to Article 45, paragraph (2) of that Act) or Article 48-2, paragraph (2) of the Inheritance Tax Act, a document stating the type and value of the specified registered artwork to be used for the payment in kind and other matters concerning that specified registered artwork, and other documents specified by Order of the Ministry of Finance, and submit it to the district director with jurisdiction over the place for tax payment. In this case, these documents are deemed to be the documents relating to the procedures for payment in kind prescribed in Article 42, paragraph (1) of that Act.

In the case where a person has evaded inheritance tax or gift tax by failing to file, by the filing deadline for those returns, an amended return form or a tax return form filed after the due date under the provisions of Article 69-3, paragraph (1) or (2), Article 70, paragraph (6) (including as applied mutatis mutandis pursuant to paragraph (10) of that Article) or paragraph (7) (including as applied mutatis mutandis pursuant to paragraph (10) of that Article), Article 70-2, paragraph (4), Article 70-3, paragraph (4) or Article 70-7-14, paragraph (2) (referred to as an "amended return form, etc." in paragraph (3)), the person who has committed that violation is punished by imprisonment for five years or less or a fine of 5,000,000 yen or less, or both.

If the amount of inheritance tax or gift tax evaded as referred to in the preceding paragraph exceeds 5,000,000 yen, the fine referred to in that paragraph may, depending on the circumstances, be an amount exceeding 5,000,000 yen and not exceeding the amount equivalent to the amount of inheritance tax or gift tax so evaded.

In the case where a person has failed to file an amended return form, etc. by its filing deadline without justifiable grounds, the person who has committed that violation is punished by imprisonment for one year or less or a fine of 500,000 yen or less; provided, however, that the punishment may be remitted depending on the circumstances.

In the case falling under any of the following items, the person who has committed that violation is punished by imprisonment for one year or less or a fine of 500,000 yen or less:

the person has failed to submit to the district director, by its submission deadline, a report on the termination of an education fund management contract prescribed in Article 70-2-2, paragraph (19) or a report on the termination of a contract for management of marriage and child-rearing funds prescribed in Article 70-2-3, paragraph (16), or has submitted such a report containing a false statement or false record to the district director;

the person has failed to answer, or has given a false answer to, questions asked by the relevant official under the provisions of Article 70-2-2, paragraph (23) or Article 70-2-3, paragraph (20), or has refused, obstructed or evaded an inspection under those provisions;

the person has, without justifiable grounds, failed to comply with a request for the presentation or submission of articles under the provisions of Article 70-2-2, paragraph (23) or Article 70-2-3, paragraph (20), or has presented or submitted books and documents or other articles (including copies thereof) containing a false statement or false record.

When the representative of a corporation (including an association or foundation without juridical personality prescribed in Article 66, paragraph (1) of the Inheritance Tax Act; the same applies hereinafter in this paragraph and the following paragraph) (including the representative or administrator of that association or foundation), or the agent, employee or other worker of a corporation or individual, has committed a violation referred to in paragraph (1) or the preceding two paragraphs with regard to the business or property of that corporation or individual, not only is the offender punished, but that corporation or individual is also subject to the fine prescribed in the relevant provision.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) under the provisions of the preceding paragraph, the period of the statute of limitations is the same as that for the offense referred to in paragraph (1).

In the case where the provisions of paragraph (5) apply to an association or foundation prescribed in that paragraph, its representative or administrator represents that association or foundation with regard to its procedural acts, and the provisions of Acts concerning criminal proceedings in which a corporation is the defendant or the suspect apply mutatis mutandis.