Act on Special Measures Concerning Taxation

In the case where a petroleum refiner prescribed in Article 2, paragraph (5) of the Oil Stockpiling Act (Act No. 96 of 1975) (referred to as a "petroleum refiner" in this Article) has, by March 31, 2028, manufactured non-product gas (meaning other things listed in subheading 2711.29 of the Appended Table of the Customs Tariff Act that are manufactured as by-products in the manufacture of petroleum and bituminous oils and preparations thereof listed in subheadings 2710.12, 2710.19 and 2710.20 of that Table, propane listed in subheading 2711.12 of that Table, butane listed in subheading 2711.13 of that Table and other things specified by Cabinet Order, other than those to be used for sale (including provision other than sale); the same applies hereinafter in this Article) from taxed raw materials (meaning taxed crude oil, etc., or petroleum preparations, etc. or other things specified by Cabinet Order, on which petroleum and coal tax has been imposed; the same applies hereinafter in this Article) at a manufacturing site for which it has obtained, through the procedures specified by Cabinet Order, the approval of the district director with jurisdiction over the location of that manufacturing site (limited to a manufacturing site for which notification under the provisions of Article 26 of that Act has been given), an amount calculated pursuant to the provisions of Cabinet Order as the amount equivalent to the amount of petroleum and coal tax on those taxed raw materials, for the non-product gas manufactured from those taxed raw materials, is refunded pursuant to the provisions of Cabinet Order to that petroleum refiner (or, in the case where that petroleum refiner is not the taxpayer of petroleum and coal tax on the crude oil or petroleum products that became the raw material of that non-product gas, or in any other case specified by Cabinet Order, to that petroleum refiner, by deeming that petroleum refiner to have paid that petroleum and coal tax on that crude oil or those petroleum products).

In the case where an application for the approval referred to in the preceding paragraph has been filed, when the district director finds that the application is particularly inappropriate for control purposes because the manufacturing site prescribed in that paragraph is a manufacturing site where the quantity of non-product gas cannot be properly measured, or for any other reason, the district director may refuse to grant the approval.

When the district director finds it necessary for control purposes, the district director may, pursuant to the provisions of Cabinet Order, order that taxed raw materials be stored separately from other goods.

The provisions of Article 21 and Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a petroleum refiner that has obtained the approval prescribed in paragraph (1) for its manufacturing site, and the provisions of Article 74-5, item (iv), (d), Article 74-8 and Article 74-13 of that Act apply mutatis mutandis to a person found to be obliged to transfer raw materials to a petroleum refiner that has obtained the approval prescribed in that paragraph for its manufacturing site or any other person found to have transactions, in connection with that person's business, with a petroleum refiner that has obtained the approval prescribed in that paragraph for its manufacturing site, respectively. In this case, the phrase "an extractor or seller of crude oil, an extractor of gaseous hydrocarbons or coal, an importer of crude oil, etc., a petroleum refiner specified by Cabinet Order, a special filer, or a person who has obtained the approval referred to in Article 15, paragraph (1)" in Article 21 of the Petroleum and Coal Tax Act is deemed to be replaced with "a petroleum refiner prescribed in Article 90-6-3, paragraph (1) of the Act on Special Measures Concerning Taxation that has obtained the approval under the provisions of that paragraph for its manufacturing site", and the phrase "the extraction of crude oil, gaseous hydrocarbons or coal, or the purchase, storage, consumption, sale or taking out of a bonded area of crude oil, etc." in that Article is deemed to be replaced with "the manufacture or shipment out of non-product gas prescribed in that paragraph manufactured at that manufacturing site"; the phrase "these persons" in Article 74-5, item (iv), (a) of the Act on General Rules for National Taxes is deemed to be replaced with "that person", and the phrase "crude oil, etc. (meaning crude oil, etc. prescribed in Article 4, paragraph (2) (Persons Liable for Tax) of that Act" in (a) of that item is deemed to be replaced with "non-product gas (meaning non-product gas prescribed in Article 90-6-3, paragraph (1) of the Act on Special Measures Concerning Taxation"; the phrase "crude oil, etc. or the crude oil, etc. prescribed in (b)" in (c) of that item is deemed to be replaced with "non-product gas"; and the phrase "(a) or (b)" in (d) of that item is deemed to be replaced with "(a)", and the phrase "crude oil, etc." in (d) of that item is deemed to be replaced with "raw materials".

The petroleum refiner referred to in the preceding paragraph to whom the provisions of Article 21 of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of that paragraph (including a person who succeeds to the obligation to keep books pursuant to the provisions of Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act as applied mutatis mutandis pursuant to the provisions of that paragraph) is deemed to be the person prescribed in Article 21 of the Petroleum and Coal Tax Act and the provisions of Article 24 (limited to the part relating to item (v)) and Article 25, paragraph (1) of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (iv), (a) and (c) of that Act and the part of item (iii) relating to item (iv), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to that refiner, and a person found to be obliged to transfer raw materials to the petroleum refiner referred to in the preceding paragraph or any other person found to have transactions with the petroleum refiner referred to in that paragraph in connection with that person's business, to whom the provisions of Article 74-5, item (iv), (d) of that Act apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in (d) of that item and the provisions of Article 128 (limited to the part of items (ii) and (iii) relating to Article 74-5, item (iv), (d) of that Act) and Article 130 of that Act apply to that person, respectively.

No interest on refund under the provisions of the Act on General Rules for National Taxes is added to a refund under the provisions of paragraph (1).

If a person has received or attempted to receive a refund under the provisions of Article 90-3-4, paragraph (1), Article 90-5, paragraph (1), Article 90-6, paragraph (1), Article 90-6-2, paragraph (1) or paragraph (1) of the preceding Article by deception or other wrongful act, the person who committed the violation is punished by imprisonment for 10 years or less or a fine of 1,000,000 yen or less, or both.

If three times the amount equivalent to the refund relating to the crime referred to in the preceding paragraph exceeds 1,000,000 yen, the fine referred to in that paragraph may, depending on the circumstances, be an amount exceeding 1,000,000 yen and equal to or less than three times the amount equivalent to that refund.

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

when a person, in violation of the provisions of Article 90-3-3, paragraph (4), has used the specified-use coal referred to in that paragraph for a use other than the use prescribed in that paragraph, or has transferred it for such a use;

when a person, in violation of the provisions of Article 90-4, paragraph (6), has used the petroleum products, etc. referred to in that paragraph for a use other than the use prescribed in that paragraph, or has transferred them for such a use;

when a person, in violation of the provisions of Article 90-4-2, paragraph (4), has used the specified coal referred to in that paragraph for a use other than the use prescribed in that paragraph, or has transferred it for such a use;

when a person, in violation of the provisions of Article 90-4-3, paragraph (4), has used the specified coal, etc. for power generation in Okinawa referred to in that paragraph for a use other than the use prescribed in that paragraph, or has transferred it for such a use;

when a person, in violation of the provisions of Article 90-6, paragraph (6), has used the heavy oil referred to in that paragraph for a use other than the use prescribed in that paragraph, or has transferred it for such a use;

when a person, by deception or other wrongful act, has purchased the heavy oil prescribed in Article 90-6, paragraph (1) by the method prescribed in that paragraph for a purpose other than the purpose of using it for the use prescribed in that paragraph;

when a person has failed to submit the documents under the provisions of Article 90-6-2, paragraph (3), or has submitted false documents.

If the representative of a corporation, or an agent, employee or other worker of a corporation or individual, has committed a violation referred to in paragraph (1) or the preceding paragraph in connection with 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 preceding three paragraphs.

In the case where a fine is imposed on a corporation or individual for a violation referred to in paragraph (1) pursuant to the preceding paragraph, the period of the statute of limitations is governed by the period of the statute of limitations for the crime referred to in that paragraph.