①The provisions of Article 37-11-3, paragraph (1) of the New Act on Special Measures Concerning Taxation apply to transfers, made on or after January 1, 2003, of listed shares, etc. held in a specified account prescribed in Article 37-11-3, paragraph (1) of the New Act on Special Measures Concerning Taxation that pertain to a specified account prescribed in paragraph (3), item (i) of that Article (referred to as a "specified account" in this Article) opened on or after that date.

②The provisions of Article 37-11-3, paragraph (2) of the New Act on Special Measures Concerning Taxation apply to transfers of listed shares, etc. pertaining to margin transactions prescribed in that paragraph that pertain to settlement as referred to in that paragraph processed on or after January 1, 2003 in a specified account opened on or after that date.

③A resident or a nonresident who has a permanent establishment in Japan, as prescribed in Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, who intends to open a specified account, and a securities company prescribed in that item with which that specified account is to be opened (referred to as a "securities company" in this Article) may, even before January 1, 2003, in the same manner as provided in that item, open an account for the custody of listed shares, etc. or for margin transactions in listed shares, etc. prescribed in that item for which the written notification for opening a specified account prescribed in that item is to be submitted, submit that written notification for opening a specified account, and carry out other necessary acts (excluding the acceptance of listed shares, etc. (meaning listed shares, etc. prescribed in Article 37-11, paragraph (1) of the New Act on Special Measures Concerning Taxation; the same applies hereinafter in this Article) (excluding acceptance pursuant to the provisions of the following paragraph) and the transfer of custody of margin transactions in listed shares, etc. (meaning margin transactions prescribed in that item; the same applies hereinafter in this Article) (excluding a transfer of custody pursuant to the provisions of paragraph (6))). In this case, the provisions of Articles 37-11-3 through 37-11-5 of the New Act on Special Measures Concerning Taxation apply by deeming the written notification for opening a specified account so submitted to have been submitted on that date, and the account for the custody of listed shares, etc. or for margin transactions in listed shares, etc. so opened that pertains to that written notification for opening a specified account (referred to as a "preparatory account" in this Article) to have been opened on that date, respectively.

④In a preparatory account to which the provisions of the second sentence of the preceding paragraph apply, listed shares, etc. that the resident or the nonresident who has a permanent establishment in Japan referred to in that paragraph holds on any one day during 2002 after the last business day in 2002 of the securities company that opens that preparatory account, and that are listed in the following items, may be accepted on that day:

⑤Listed shares, etc. accepted into a preparatory account pursuant to the provisions of the preceding paragraph are deemed to be listed shares, etc. accepted, in a manner falling under the provisions of Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, on January 1, 2003 in the specified account pertaining to the preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date, and the provisions of paragraph (1) of that Article apply.

⑥In a preparatory account to which the provisions of the second sentence of paragraph (3) apply, on any one day during 2002 after the last business day in 2002 of the securities company that opens that preparatory account, a transfer of custody, as specified by Cabinet Order, may be made from the other margin trading account of margin transactions in listed shares, etc. that are processed in an account for contracts for margin transactions in securities, other than that preparatory account, of that resident or nonresident who has a permanent establishment in Japan, opened with the securities company that opens that preparatory account (referred to as the "other margin trading account" in this paragraph) (limited to those for which the settlement of that margin transaction is to be made on or after January 1, 2003 and that settlement is to be made in the specified account pertaining to that preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date).

⑦Margin transactions in listed shares, etc. prescribed in the preceding paragraph whose custody has been transferred to a preparatory account pursuant to the provisions of that paragraph are deemed to be margin transactions commenced, in a manner falling under the provisions of Article 37-11-3, paragraph (3), item (i) of the New Act on Special Measures Concerning Taxation, on January 1, 2003 in the specified account pertaining to the preparatory account deemed pursuant to the provisions of the second sentence of paragraph (3) to have been opened on that date, and the provisions of paragraph (2) of that Article apply.

⑧Beyond what is provided for in paragraph (5) and the preceding paragraph, special provisions on the determination of the acquisition cost and the time of acquisition of listed shares, etc. accepted pursuant to the provisions of paragraph (4), special provisions on necessary expenses pertaining to margin transactions in listed shares, etc. whose custody has been transferred pursuant to the provisions of paragraph (6), and other necessary matters concerning the application of the provisions of paragraphs (3), (4) and (6) are specified by Cabinet Order.

⑨The provisions of Article 37-11-3, paragraphs (4) and (5) of the New Act on Special Measures Concerning Taxation apply in the case where the written notification for opening a specified account prescribed in paragraph (3), item (i) of that Article is submitted on or after January 1, 2003 (including the case where that written notification for opening a specified account is submitted before that date pursuant to the provisions of paragraph (3)).