Article 39Secondary Tax Liability of Transferees for No Consideration or at a Remarkably Low Price, etc.

In the case where it is found that the amount to be collected is still insufficient even after the execution of the delinquent tax collection procedure on a delinquent taxpayer's national tax (including, where a request has been made for collection assistance by a tax treaty partner, etc. (meaning assistance, based on the provisions of a tax treaty, etc. (meaning a tax treaty, etc. as prescribed in Article 2, item (ii) (Definitions) of the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties, etc. (Act No. 46 of 1969)), by the treaty partner of that tax treaty, etc. (meaning a treaty partner as prescribed in Article 2, item (iii) of that Act) in the collection of a national tax subject to collection assistance (meaning a national tax subject to collection assistance as prescribed in Article 11-2, paragraph (1) (Assistance in the Collection of National Tax) of that Act); referred to as "collection assistance by a tax treaty partner, etc." in Article 153, paragraph (1), item (i) (Requirements for Suspension of Delinquent Tax Collection Procedures, etc.) and Article 187, paragraphs (1) and (2) (Penal Provisions)), collection pursuant to that request), and that insufficiency is found to be attributable to a transfer, made by the delinquent taxpayer on or after the day one year before the statutory due date for tax payment of that national tax, of the delinquent taxpayer's property for no consideration or for consideration of a remarkably low amount (excluding a transfer made for the purpose of security), a waiver of an obligation, or any other disposition that gives a benefit to a third party, as specified by Cabinet Order, a person who has acquired a right or been relieved of an obligation by those dispositions is to bear secondary tax liability for the national tax pertaining to that delinquency, up to the limit of the extent to which the benefit received by those dispositions currently exists (or, if at the time of those dispositions those persons were a relative of the delinquent taxpayer or other individual who has a special relationship with the delinquent taxpayer, or a family corporation (including a corporation similar thereto) specified by Cabinet Order (referred to as "relative or other person with a special relationship" in Article 58, paragraph (1) (Procedure for Seizure of Movables, etc. in the Possession of a Third Party) and Article 142, paragraph (2), item (ii) (Authority and Methods of Search)), up to the limit of the benefit received by those dispositions).