Article 22Collection of National Tax Where Property Subject to Security Interest Is Transferred

①Where a taxpayer does not have other sufficient property to appropriate to national tax, if the taxpayer has transferred property on which the taxpayer established a pledge or mortgage registered after the statutory due date for tax payment, etc. of that national tax, then only where it is found that the national tax would still be insufficient even if the delinquent tax collection procedure were executed against the taxpayer's property, that national tax may be collected from the pledgee or mortgagee, out of the amount they are to receive by distribution in respect of the claim secured by the pledge or mortgage in the compulsory liquidation procedure for the property relating to the transfer.

②The amount that may be collected under the preceding paragraph may not exceed the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

③In order to collect national tax under the provisions of paragraph (1), the district director may subrogate to the pledgee or mortgagee referred to in that paragraph and enforce the pledge or mortgage.

④When the district director intends to collect national tax under the provisions of paragraph (1), the district director must notify the pledgee or mortgagee to that effect.

⑤Where a compulsory liquidation procedure has been carried out for the property relating to the transfer referred to in paragraph (1), the district director may make a request for share distribution to the enforcement agency for the national tax in the amount that may be collected under the provisions of that paragraph.