②If a corporation prescribed in Article 57, paragraph (1) of the Former Act on Special Measures Concerning Taxation has an amount of the reserve for losses on computer buybacks prescribed in paragraph (4) of that Article as of the first day of the first business year beginning on or after the Effective Date (where the first business year beginning on or after the Effective Date falls under a consolidated business year, the first day of that consolidated business year), an amount equivalent to the amount calculated by multiplying the amount of that reserve for losses on computer buybacks by the number of months in each business year and dividing the product by 60 (referred to as the "amount drawn down in equal parts over five years" in the following paragraph) is included in gross profit in calculating the amount of income for each business year (excluding a business year that falls under a consolidated business year) that includes any day within five years from that first day.

③In the case referred to in the preceding paragraph, if the amount drawn down in equal parts over five years exceeds the amount of the reserve for losses on computer buybacks as of the end of the business year (where, by that date, there is an amount that has been included, or has come to be included, in gross profit pursuant to the provisions of the following paragraph out of the amount of the reserve for losses on computer buybacks prescribed in that paragraph (including an amount included in gross profit pursuant to the provisions of Article 57, paragraph (4) of the Supplementary Provisions), or an amount that has been included in gross profit pursuant to the provisions of the preceding paragraph by the end of the preceding business year (where the business year that includes the day preceding the first day of that business year falls under a consolidated business year, the consolidated business year that includes that preceding day) (including an amount included in gross profit pursuant to the provisions of paragraph (2) of that Article), the amount remaining after deducting those amounts; the same applies hereinafter in this Article), the amount drawn down in equal parts over five years is to be the amount of that reserve for losses on computer buybacks.

④If a corporation to which the provisions of paragraph (2) apply comes to fall under any of the cases listed in the following items (excluding the case where, through a qualified merger or qualified company split by split-off, it has come not to carry out all of the buybacks of computers subject to the buyback referred to in paragraph (3) of Article 57 of the Former Act on Special Measures Concerning Taxation that it sold, before that qualified merger or qualified company split by split-off, to a specified computer leasing company prescribed in paragraph (2) of that Article (hereinafter referred to as "specified computers" in this paragraph and paragraph (11))), an amount equivalent to the amount specified in the relevant item is included in gross profit in calculating the amount of income for the business year that includes the date on which it came to fall under that case (in the case listed in item (ii), the business year that includes the day preceding the date of the merger).

⑤If a corporation to which the provisions of paragraph (2) apply has its approval for filing blue returns revoked, or submits a written notification stating that it will cease filing blue returns, by the day on which four years have elapsed from the first day of the first business year beginning on or after the Effective Date (where the first business year beginning on or after the Effective Date falls under a consolidated business year, the first day of that consolidated business year), the amount of the reserve for losses on computer buybacks as of the date on which the fact giving rise to the revocation of the approval occurred or the date on which the written notification was submitted (where the date on which the written notification was submitted is after the end of the business year in which the corporation ceased filing blue returns, the end of that business year) is, as specified by Cabinet Order, included in gross profit in calculating the amount of income for each business year from the business year that includes that date to the business year that includes the day preceding the day on which two years have elapsed from the first day of that business year (where the business year that includes the day preceding the day on which two years have elapsed from the first day of that business year (hereinafter referred to as the "date two years have passed" in this paragraph) falls under a consolidated business year, the business year that includes the day preceding the first day of the consolidated business year that first began during the period from the day following the first day of that business year to the date two years have passed). In this case, the provisions of paragraph (2), the preceding paragraph, paragraph (8) and paragraph (11) do not apply to that amount of the reserve for losses on computer buybacks.

⑥If a corporation to which the provisions of paragraph (2) apply is, in the case where the business year does not fall under a consolidated business year and the business year that includes the day preceding the first day of that business year fell under a consolidated business year, not a person who may file the tax return, etc. for that business year using a blue return (including the case where it has come to be a person who may not file the tax return, etc. for that business year using a blue return because its approval for filing blue returns has been revoked or it has submitted a written notification stating that it will cease filing blue returns), the amount of the reserve for losses on computer buybacks as of the end of that business year is included in gross profit in calculating the amount of income for that business year. In this case, the provisions of that paragraph, the preceding two paragraphs, paragraph (8) and paragraph (11) do not apply.

⑦The number of months referred to in paragraph (2) is calculated according to the calendar, and a fraction of less than one month is counted as one month.

⑧If a qualified merger in which a corporation to which the provisions of paragraph (2) apply is the merged corporation is carried out (excluding the case prescribed in the first sentence of Article 57, paragraph (6) of the Supplementary Provisions), the amount of the reserve for losses on computer buybacks immediately before the qualified merger is to be taken over by that merging corporation. In this case, the amount of the reserve for losses on computer buybacks taken over by the merging corporation is deemed to be the amount of the reserve for losses on computer buybacks referred to in paragraph (2) that the merging corporation holds as of the date of the qualified merger (where the business year of the merging corporation that includes the date of the qualified merger falls under a consolidated business year, the amount of the reserve for losses on computer buybacks referred to in paragraph (2) of that Article).

⑨In the case referred to in the preceding paragraph or Article 57, paragraph (6) of the Supplementary Provisions, if the merging corporation referred to in those provisions (excluding one that falls under a consolidated corporation after the qualified merger) is not a person who may file the tax return, etc. for the business year that includes the date of the qualified merger using a blue return or a person that has the special agreement specified by Cabinet Order as prescribed in Article 57, paragraph (3) of the Former Act on Special Measures Concerning Taxation, the amount of the reserve for losses on computer buybacks as of the end of that business year is included in gross profit in calculating the amount of income for that business year.

⑩With regard to the application of the provisions of paragraph (2) to each business year on or after the business year that includes the date of the qualified merger (where the business year that includes the date of the qualified merger falls under a consolidated business year, each business year after that consolidated business year) of the merging corporation referred to in paragraph (8) or Article 57, paragraph (6) of the Supplementary Provisions (excluding one that falls under a consolidated corporation after the qualified merger), the amount of the reserve for losses on computer buybacks prescribed in paragraph (2) is to include the amount of the reserve for losses on computer buybacks deemed to be held by the merging corporation pursuant to the provisions of paragraph (8) or paragraph (6) of that Article. In this case, with regard to the amount of the reserve for losses on computer buybacks deemed to be held by the merging corporation, the phrase "by the number of months in each business year and dividing the product by 60" in paragraph (2) is deemed to be replaced with "by the number of months in each business year (for the business year that includes the date of the qualified merger, the number of months in the period from that date to the end of the business year that includes that date) and dividing the product by the number of months obtained by deducting from 60 months the number of months in the elapsed period (meaning the period from the first day of the first business year beginning on or after the Effective Date (where the first business year beginning on or after the Effective Date falls under a consolidated business year, the first day of that consolidated business year) to the day preceding the date of the qualified merger)".

⑪If a qualified company split by split-off in which a corporation to which the provisions of paragraph (2) apply is the splitting corporation is carried out (excluding the case prescribed in the first sentence of Article 57, paragraph (9) of the Supplementary Provisions) and the successor corporation in a company split pertaining to that qualified company split by split-off has come to carry out all of the buybacks of specified computers, the amount of the reserve for losses on computer buybacks immediately before the qualified company split by split-off is to be taken over by that successor corporation in a company split. In this case, the amount of the reserve for losses on computer buybacks taken over by the successor corporation in a company split is deemed to be the amount of the reserve for losses on computer buybacks referred to in paragraph (2) that the successor corporation in a company split holds as of the date of the qualified company split by split-off (where the business year of the successor corporation in a company split that includes the date of the qualified company split by split-off falls under a consolidated business year, the amount of the reserve for losses on computer buybacks referred to in paragraph (2) of that Article).

⑫In the case referred to in the preceding paragraph or Article 57, paragraph (9) of the Supplementary Provisions, if the successor corporation in a company split referred to in those provisions (excluding one that falls under a consolidated corporation after the qualified company split by split-off) is not a person who may file the tax return, etc. for the business year that includes the date of the qualified company split by split-off using a blue return or a person that has the special agreement specified by Cabinet Order as prescribed in Article 57, paragraph (3) of the Former Act on Special Measures Concerning Taxation, the amount of the reserve for losses on computer buybacks as of the end of that business year is included in gross profit in calculating the amount of income for that business year.

⑬With regard to the application of the provisions of paragraph (2) to each business year on or after the business year that includes the date of the qualified company split by split-off (where the business year that includes the date of the qualified company split by split-off falls under a consolidated business year, each business year after that consolidated business year) of the successor corporation in a company split referred to in paragraph (11) or Article 57, paragraph (9) of the Supplementary Provisions (excluding one that falls under a consolidated corporation after the qualified company split by split-off), the amount of the reserve for losses on computer buybacks prescribed in paragraph (2) is to include the amount of the reserve for losses on computer buybacks deemed to be held by the successor corporation in a company split pursuant to the provisions of paragraph (11) or paragraph (9) of that Article. In this case, with regard to the amount of the reserve for losses on computer buybacks deemed to be held by the successor corporation in a company split, the phrase "by the number of months in each business year and dividing the product by 60" in paragraph (2) is deemed to be replaced with "by the number of months in each business year (for the business year that includes the date of the qualified company split by split-off, the number of months in the period from that date to the end of the business year that includes that date) and dividing the product by the number of months obtained by deducting from 60 months the number of months in the elapsed period (meaning the period from the first day of the first business year beginning on or after the Effective Date (where the first business year beginning on or after the Effective Date falls under a consolidated business year, the first day of that consolidated business year) to the day preceding the date of the qualified company split by split-off)".