If an action taken or calculation made by one of the following corporations would, if tolerated, unreasonably reduce the burden of income taxes on a Resident that is a Shareholder, Member, or Other Investor in the corporation or on a Resident that is uniquely related to such a Shareholder, Member, or Other Investor as provided for by Cabinet Order (including a Resident uniquely related to a Nonresident that is a Shareholder, Member, or Other Investor in the corporation; the same applies in paragraph (4)), the district director, when making a Reassessment or determination on the Resident's income taxes, may exercise the discretion thereof in calculating an amount as set forth in Article 120, paragraph (1), item (i) or items (iii) through (v) (Filing Income Tax Returns), Article 122, paragraph (1), items (i) through (iii) (Filing a Return to Receive a Refund), or Article 123, paragraph (2), item (i), item (iii), item (v), or item (vii) (Filing Tax Returns Showing Losses) as regards the Resident for each year, notwithstanding that action or calculation:
税務署長は、次に掲げる法人の行為又は計算で、これを容認した場合にはその株主等である居住者又はこれと政令で定める特殊の関係のある居住者（その法人の株主等である非居住者と当該特殊の関係のある居住者を含む。第四項において同じ。）の所得税の負担を不当に減少させる結果となると認められるものがあるときは、その居住者の所得税に係る更正又は決定に際し、その行為又は計算にかかわらず、税務署長の認めるところにより、その居住者の各年分の第百二十条第一項第一号若しくは第三号から第五号まで（確定所得申告）、第百二十二条第一項第一号から第三号まで（還付等を受けるための申告）又は第百二十三条第二項第一号、第三号、第五号若しくは第七号（確定損失申告）に掲げる金額を計算することができる。
a family company prescribed in Article 2, paragraph (10) (Definitions) of the Corporation Tax Act;
法人税法第二条第十号（定義）に規定する同族会社
a corporation falling under all of the clauses from (a) through (c) below:
イからハまでのいずれにも該当する法人
the corporation has three or more branch offices, factories, or other places of business;
三以上の支店、工場その他の事業所を有すること。
at half or more of its places of business, the director or chief officer of that place of business or the person in charge of business at that place of business, the relative of the person in charge, or any other individual uniquely related to the person in charge as provided by Cabinet Order (hereinafter referred to as a "director or related individual" in this item) formerly conducted business at that place of business as an individual;
その事業所の二分の一以上に当たる事業所につき、その事業所の所長、主任その他のその事業所に係る事業の主宰者又は当該主宰者の親族その他の当該主宰者と政令で定める特殊の関係のある個人（以下この号において「所長等」という。）が前に当該事業所において個人として事業を営んでいた事実があること。
the total number of shares held or total amount of capital contributions made to the corporation by the directors and related individuals associated with places of business at which a fact as prescribed in (b) is in operation is equivalent to at least two-thirds of the total number of shares issued by the corporation or at least two-thirds of the total capital contributions made to the corporation (other than treasury shares or capital contributions held by the corporation itself).
ロに規定する事実がある事業所の所長等の有するその法人の株式又は出資の数又は金額の合計額がその法人の発行済株式又は出資（その法人が有する自己の株式又は出資を除く。）の総数又は総額の三分の二以上に相当すること。
In a case as referred to in the preceding paragraph, the determination as to whether a corporation falls under the category of a corporation as set forth in the items of that paragraph is to be based on the circumstances as of the time that the action prescribed in that paragraph was actually taken or that the calculation prescribed in that paragraph was actually made.
The provisions of paragraph (1) apply mutatis mutandis to Reassessments and Tax-Office Decisions involving a Resident's income taxes as set forth in paragraph (1) if the provisions of Article 132, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Corporation Tax Act, Article 64, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Inheritance Tax Act, or Article 32, paragraph (1) (Negation of Actions or Calculations by a Family Company) of the Land Value Tax Act are applied to the action taken or calculation made by a corporation as set forth in the items of paragraph (1).
第一項の規定は、同項各号に掲げる法人の行為又は計算につき、法人税法第百三十二条第一項（同族会社等の行為又は計算の否認）若しくは相続税法第六十四条第一項（同族会社等の行為又は計算の否認等）又は地価税法（平成三年法律第六十九号）第三十二条第一項（同族会社等の行為又は計算の否認等）の規定の適用があつた場合における第一項の居住者の所得税に係る更正又は決定について準用する。
If it is found that an action taken or calculation made by a corporation that has carried out a merger (including a consolidation of trusts in connection with a Trust Subject to Corporate Taxation), company split (including a trust split in connection with a Trust Subject to Corporate Taxation), capital contribution in kind, distribution in kind as prescribed in Article 2, item (xii)-5-2 of the Corporation Tax Act, share exchange or similar transaction as prescribed in item (xii)-16 of that Article, or share transfer (hereinafter referred to as a "merger or similar process" in this paragraph), or by a corporation that has received a transfer of assets and liabilities through a merger or similar process (such corporations include a corporation issuing shares or capital contributions that are delivered through the merger or similar process; hereinafter the same applies in this paragraph), would, if tolerated, unreasonably reduce the burden of income taxes on a Resident that is a Shareholder, Member, or Other Investor in the corporation that carried out the merger or similar process or in the corporation that received the transfer of assets and liabilities through the merger or similar process, or on a Resident that is uniquely related to such a Shareholder, Member, or Other Investor as prescribed in paragraph (1), the district director, when making a Reassessment or determination on the Resident's income taxes, may exercise the discretion thereof in calculating an amount as set forth in Article 120, paragraph (1), item (i) or items (iii) through (v), Article 122, paragraph (1), items (i) through (iii), or Article 123, paragraph (2), item (i), item (iii), item (v), or item (vii) as regards the Resident for each year, notwithstanding that action or calculation.
税務署長は、合併（法人課税信託に係る信託の併合を含む。）、分割（法人課税信託に係る信託の分割を含む。）、現物出資若しくは法人税法第二条第十二号の五の二に規定する現物分配又は同条第十二号の十六に規定する株式交換等若しくは株式移転（以下この項において「合併等」という。）をした法人又は合併等により資産及び負債の移転を受けた法人（当該合併等により交付された株式又は出資を発行した法人を含む。以下この項において同じ。）の行為又は計算で、これを容認した場合には当該合併等をした法人若しくは当該合併等により資産及び負債の移転を受けた法人の株主等である居住者又はこれと第一項に規定する特殊の関係のある居住者の所得税の負担を不当に減少させる結果となると認められるものがあるときは、その居住者の所得税に関する更正又は決定に際し、その行為又は計算にかかわらず、税務署長の認めるところにより、その居住者の各年分の第百二十条第一項第一号若しくは第三号から第五号まで、第百二十二条第一項第一号から第三号まで又は第百二十三条第二項第一号、第三号、第五号若しくは第七号に掲げる金額を計算することができる。
Read this with the articles around it
Resident
「居住者」
An individual who has a domicile in Japan, or who has had a residence in Japan continuously for one year or more up to now.
Defined inArticle 2, paragraph (1), item (iii)· applies throughout the law
Nonresident
「非居住者」
An individual who is not a resident.
Defined inArticle 2, paragraph (1), item (v)· applies throughout the law
Shareholder, Member, or Other Investor
「株主等」
Shareholders, members of a general partnership, limited partnership or limited liability company, and other investors in a corporation.
Defined inArticle 2, paragraph (1), item (viii-2)· applies throughout the law
Trust Subject to Corporate Taxation
「法人課税信託」
A trust subject to corporate taxation as defined in Article 2, item (xxix)-2 of the Corporation Tax Act (Act No. 34 of 1965).
Defined inArticle 2, paragraph (1), item (viii-3)· applies throughout the law
Reassessment
「更正」
A reassessment under Article 24 or, where the tax office corrects its own earlier reassessment or determination, Article 26 of the Act on General Rules for National Taxes, by which the district tax office director (税務署長) corrects the tax base or tax declared after an investigation.
Defined inArticle 2, paragraph (1), item (xliii)· applies throughout the law
determinationmachine translation
「決定」
A determination of tax under Article 25 of the Act on General Rules for National Taxes, by which the district tax office director (税務署長) fixes the tax base and tax of someone who should have filed a return and did not; in the Articles this definition lists, the word is used in another sense.
Defined inArticle 2, paragraph (1), item (xliv)· applies throughout the law, except in Articles 19, 44-2, 52, 57-4, 151-4, 159, 160 and 228-2
director or related individual
「所長等」
The head, manager or other person running one of a corporation's business establishments, or a relative or other individual specially related to that person as a Cabinet Order (政令) specifies, used to identify corporations formed from businesses those people previously ran as individuals.
Short name set inArticle 157, paragraph (1), item (ii), (b)· applies only in this item
merger or similar processmachine translation
「合併等」
A merger, company split, contribution in kind, distribution in kind, share exchange or similar transaction, or share transfer (including the merger or split of a trust taxed as a corporation), used in the rule letting the district tax office director (税務署長) disregard such dealings that unfairly reduce a shareholder's income tax.
Short name set inArticle 157, paragraph (4)· applies only in this paragraph
district director
税務署長
The head of a tax office (税務署), the local office of the National Tax Agency that deals with taxpayers in its district (Act for Establishment of the Ministry of Finance, Article 24). It is the office a person usually deals with: an income tax return is filed with a district director (Income Tax Act, Article 120, paragraph (1)), and reassessments, determinations and the collection of national tax are done by the district director for the taxpayer's current place for tax payment (Act on General Rules for National Taxes, Articles 30 and 43). A person who objects to what a district director has decided can ask that director to look at it again (再調査の請求) or go straight to the National Tax Tribunal (Article 75, paragraph (1), item (i)) — unless the notice of the decision says officials of a Regional Taxation Bureau or of the National Tax Agency investigated, in which case it counts as the regional commissioner's decision, with the same choice, or as the Commissioner of the National Tax Agency's, which can only be challenged by a request for review to the Commissioner (Article 75, paragraph (2)).
Written by AI using Act for Establishment of the Ministry of Finance, Art. 24, Act on General Rules for National Taxes, Arts. 30, 43, 75 and Income Tax Act, Art. 120 as a reference.