①Where assets held by a corporation that are prescribed in the items of Article 64, paragraph (1) or in paragraph (1), item (i) or item (ii) of the preceding Article have come to fall under those provisions (including where a transfer through expropriation, etc. is deemed to have been made, pursuant to the provisions of Article 64, paragraph (2), with regard to the land, etc. prescribed in item (i) of that paragraph or the assets on the land prescribed in item (ii) of that paragraph, and where, upon the withdrawal of an offer of a wish to acquire prescribed in paragraph (7) of the preceding Article, a transfer through expropriation, etc. is deemed to have been made, pursuant to the provisions of that paragraph, with regard to the right to receive the grant of the portion of a building facility prescribed in paragraph (1), item (iv) of that Article), if the amount of the compensation, consideration or settlement money prescribed in those provisions (including the consideration paid due to the withdrawal of the offer of a wish to acquire; hereinafter referred to as "compensation, etc." in this Article) or the value of the assets (hereinafter referred to as "assets acquired by exchange" in this Article) that the corporation has acquired through expropriation, etc. or replotting disposition, etc. (hereinafter referred to as "expropriation or replotting, etc." in this Article) (where the value of the assets acquired by exchange acquired through the expropriation or replotting, etc. exceeds the value of the assets transferred through the expropriation or replotting, etc., and an amount equivalent to the difference has been paid upon the expropriation or replotting, etc., the amount after deducting the amount equivalent to that difference) exceeds the total of the book value of the transferred assets immediately before the transfer and the amount calculated pursuant to the provisions of Cabinet Order as the expenses required for the transfer of the transferred assets that pertain to the compensation, etc. or the assets acquired by exchange, and the corporation does not receive the application of the provisions of Article 64 through the preceding Article with regard to any of the assets it has transferred through expropriation or replotting, etc. during the portion of that business year falling within the same calendar year (excluding, of the assets transferred through a replotting disposition, etc. that falls under the cases listed in paragraph (1), items (iii) through (vii) of the preceding Article, the part specified by Cabinet Order as the part corresponding to the value of the assets acquired through that replotting disposition, etc., and assets with regard to which a transfer through replotting disposition, etc. is deemed to have been made pursuant to the provisions of paragraphs (7) through (9) of that Article; the same applies in the following paragraph and paragraph (7)), the lower of the amount of that excess and 50 million yen (where there is an amount that has been included or is to be included in deductible expenses pursuant to the provisions of this paragraph, the following paragraph or paragraph (7) with regard to the amount of compensation, etc. (including conversion settlement money and disaster prevention conversion settlement money) or the value of the assets acquired by exchange acquired through expropriation or replotting, etc. in the year that includes the date of the transfer, the amount after deducting that amount) is included in deductible expenses in calculating the amount of income for the business year that includes the date of the transfer.

②Where assets held by a corporation that are prescribed in paragraph (1), items (iii) through (v) of the preceding Article fall under those provisions and the corporation has acquired compensation, etc. together with assets through a replotting disposition, etc. that falls under the cases listed in those provisions, or where a transfer through expropriation, etc. is deemed to have been made, pursuant to the provisions of paragraph (7) of that Article, with regard to the assets referred to in paragraph (1), item (iv) of that Article and conversion settlement money has come to be granted, or where a transfer through expropriation, etc. is deemed to have been made, pursuant to the provisions of paragraph (8) of that Article, with regard to the assets referred to in paragraph (1), item (v) of that Article and disaster prevention conversion settlement money has come to be granted, if the amount of the compensation, etc. acquired (including conversion settlement money and disaster prevention conversion settlement money; hereinafter the same applies in this paragraph and paragraph (7)) exceeds the total of the amount calculated pursuant to the provisions of Cabinet Order as the part of the book value immediately before the transfer of the assets transferred through the replotting disposition, etc. (including assets with regard to which a transfer through expropriation, etc. is deemed to have been made pursuant to the provisions of paragraph (7) or paragraph (8) of that Article) corresponding to the amount of the compensation, etc. and the amount calculated pursuant to the provisions of Cabinet Order as the expenses required for the transfer of the transferred assets that pertain to the compensation, etc., and the corporation does not receive the application of the provisions of Article 64 through the preceding Article with regard to any of the assets it has transferred through expropriation or replotting, etc. during the portion of that business year falling within the same calendar year, the lower of the amount of that excess and 50 million yen (where there is an amount that has been included or is to be included in deductible expenses pursuant to the provisions of the preceding paragraph, this paragraph or paragraph (7) with regard to the amount of compensation, etc. or the value of the assets acquired by exchange acquired through expropriation or replotting, etc. in the year that includes the date of the transfer, the amount after deducting that amount) is included in deductible expenses in calculating the amount of income for the business year that includes the date of the transfer.

③The provisions of the preceding two paragraphs do not apply to the assets specified in the following items in the cases listed in those items:

④The provisions of paragraph (1) or paragraph (2) apply only where the tax return, etc. contains a statement concerning the inclusion in deductible expenses of the amount to be included in deductible expenses pursuant to those provisions and has attached to it a written statement concerning the calculation of the amount to be included in deductible expenses, and the document, delivered by the public works undertaker, certifying that the offer of purchase, etc. referred to in the preceding paragraph has been made with regard to the assets for which the application of those provisions is sought, and other documents specified by Order of the Ministry of Finance, are preserved.

⑤Even where a tax return, etc. without the statement or attachment referred to in the preceding paragraph has been filed, or the documents specified by Order of the Ministry of Finance referred to in that paragraph have not been preserved, the district director may, if the district director finds that there were unavoidable circumstances for the failure to include the statement or attachment or to preserve the documents, apply the provisions of paragraph (1) or paragraph (2), but only where a document containing the statement, the written statement referred to in that paragraph and the documents specified by Order of the Ministry of Finance are submitted.

⑥A public works undertaker must, pursuant to the provisions of Order of the Ministry of Finance, submit copies of the documents certifying that the offer of purchase, etc. prescribed in paragraph (4) has been made, and a report on payments for the purchase, etc. of the assets, to the district director having jurisdiction over the location of the business office, place of business or other business establishment involved in the implementation of the project.

⑦Where a corporation has come to fall under the provisions of Article 64-2, paragraphs (10) through (12) (including as applied mutatis mutandis pursuant to paragraph (3) of the preceding Article; hereinafter the same applies in this paragraph), if there ceases to be any amount of the special account referred to in Article 64-2, paragraph (1) pertaining to all of the assets that the corporation transferred through expropriation or replotting, etc. during the portion, falling within the same calendar year, of the business year that includes the date of the expropriation or replotting, etc. to which the amount of the special account prescribed in Article 64-2, paragraph (10) or (11) or the amount specified in the items of paragraph (12) of that Article pertains, and the corporation has not received the application of the provisions of Article 64, paragraph (1) (including as applied mutatis mutandis pursuant to Article 64-2, paragraph (7) or paragraph (3) of the preceding Article), Article 64, paragraph (9) (including as applied mutatis mutandis pursuant to Article 64-2, paragraph (8) or paragraph (3) of the preceding Article) or paragraph (1) or paragraph (5) of the preceding Article with regard to any of those assets, the lower of the amount of the special account that has come to fall under the provisions of Article 64-2, paragraphs (10) through (12) and 50 million yen (where there is an amount that has been included or is to be included in deductible expenses pursuant to the provisions of paragraph (1), paragraph (2) or this paragraph with regard to the amount of compensation, etc. or the value of the assets acquired by exchange acquired through the expropriation or replotting, etc. of other assets in the year that includes the date of the expropriation or replotting, etc., the amount after deducting that amount) is included in deductible expenses in calculating the amount of income for the business year that includes the day on which it has come to so fall.

⑧The provisions of paragraphs (3) through (5) apply mutatis mutandis where an amount is included in deductible expenses pursuant to the provisions of the preceding paragraph.

⑨With regard to the application of the provisions of Article 67, paragraphs (3) and (5) of the Corporation Tax Act, the amount that a corporation that has received the application of the provisions of paragraph (1), paragraph (2) or paragraph (7) has included in deductible expenses pursuant to those provisions is to be included in the amount of income, etc. prescribed in those provisions of that Act.

⑩Beyond what is provided for in paragraphs (3) through (6), paragraph (8) and the preceding paragraph, the calculation of the amount of revenue reserves of a corporation that has received the application of the provisions of paragraph (1), paragraph (2) or paragraph (7), and other matters necessary for the application of the provisions of paragraph (1), paragraph (2) or paragraph (7), are specified by Cabinet Order.