Section 5 Tax Liability of Association or Foundation Without Juridical Personality

An association or foundation that is not a corporation and for which a representative or administrator is provided (hereinafter in this Chapter referred to as an "association or foundation without juridical personality") is deemed to be a corporation, and the provisions of this Chapter concerning corporations apply to it.

①Where a corporation comprehensively succeeds to the rights and obligations belonging to the property of an association or foundation without juridical personality (excluding the case where Article 9-3 applies), that corporation bears the obligation to pay or remit the local government levies to be imposed on that association or foundation without juridical personality, or that the association or foundation without juridical personality is to pay or remit (where the succession is of part of the rights and obligations, the local government levies in the amount calculated by multiplying that amount by the proportion that the property succeeded to by the corporation represents of the property of the association or foundation without juridical personality at the time of the succession).

②Where an association or foundation without juridical personality is in arrears with local government levies, if it is found that, even after delinquent tax collection procedures have been carried out on the property belonging to it (excluding property that is deemed to belong in law to a third party because that third party is the nominal holder), the amount to be collected is still insufficient, that third party bears secondary tax liability for the local government levies in arrears, up to the limit of the property deemed to belong to it in law.

③Where property of an association or foundation without juridical personality that is a person delinquent in payment has been refunded or distributed (excluding the case where Article 11-3 applies), if it is found that, even after delinquent tax collection procedures have been carried out on that association or foundation without juridical personality (including the third party prescribed in the preceding paragraph), the amount to be collected is still insufficient, the person who received that refund or distribution bears secondary tax liability for the local government levies in arrears, up to the limit of the value of the property received. However, this does not apply where the refund or distribution was made one year or more before the statutory payment due date of the local government levies in arrears.