①If the amount of income tax collected pursuant to the provisions of Articles 199 through 202 (Withholding from Retirement Income) of the former Income Tax Act on severance pay or other such compensation that was to be paid in 1984 and was paid before the effective date exceeds the amount of income tax that would result if the provisions of Articles 201 and 202 of the new Income Tax Act were applied to that severance pay or other such compensation, the Resident who was paid that severance pay or other such compensation may, pursuant to Cabinet Order, claim a refund of the excess amount from the district director with jurisdiction over the place for tax payment by June 30 of that year.

②If a claim for a refund has been made under the preceding paragraph with respect to severance pay or other such compensation prescribed in that paragraph, then, with regard to the application of the provisions concerning returns, Reassessments or determinations, payment, collection (excluding withholding from severance pay or other such compensation), and refunds (excluding the refund pertaining to that claim) for the Resident's income tax for 1984, and with regard to the application of the provisions of Article 201, paragraph (1), item (ii) of the new Income Tax Act to severance pay or other such compensation that is to be paid in that year and is paid on or after the effective date, income tax is deemed to have been collected on the severance pay or other such compensation pertaining to that claim in the amount obtained by deducting the amount to be refunded under that claim from the amount of income tax collected pursuant to the provisions of Articles 199 through 202 of the former Income Tax Act.

③When interest on refund prescribed in Article 58, paragraph (1) (Interest on Refunds) of the Act on General Rules for National Taxes is calculated on a refund under paragraph (1), the period under that paragraph that forms the basis of that calculation is the period from the day following the day on which one month has elapsed from the day on which the claim for a refund under paragraph (1) was made, until the day on which the decision to pay for that refund is made or the day on which that refund is subject to Appropriation (or, if there is a day before that day on which the Appropriation became possible, that day).