①In the case where a group tax sharing corporation (limited to one whose group tax sharing approval ceases to be effective under Article 64-10, paragraphs (4) through (6) (Cancellation of the Group Tax Sharing System, etc.) (in the case where the group tax sharing corporation is a group tax sharing subsidiary corporation, excluding a corporation specified by Cabinet Order as a corporation not subject to the provisions of Article 64-5 (Aggregation of Profits and Losses), and one whose group tax sharing approval ceases to be effective under that paragraph due to a merger in which another group tax sharing corporation is the acquiring corporation having been effected or due to the residual assets of the group tax sharing corporation having been determined)) falls under any of the following requirements, the valuation gain (meaning, in the case where the value at that time exceeds the book value at that time, the amount of the excess) or the valuation loss (meaning, in the case where the book value at that time exceeds the value at that time, the amount of the excess) of the assets evaluated by fair value (meaning the assets specified in each of the following items in accordance with which of the requirements listed in those items it falls under) held by the group tax sharing corporation as of the end of the business year immediately before the end of group tax sharing (meaning the business year containing the day preceding the day on which the approval ceases to be effective; the same applies hereinafter in this paragraph) is included in gross profits or deductible expenses, when calculating the amount of income for the business year immediately before the end of group tax sharing:

②The book value of assets whose valuation gain or valuation loss prescribed in the preceding paragraph has been included in gross profits or deductible expenses under that paragraph and other necessary matters concerning the application of the provisions of that paragraph are specified by Cabinet Order.

①In the case where a group tax sharing corporation (limited to a corporation listed in any of the items of Article 64-11, paragraph (1) (Gains or Losses on the Fair Valuation of Assets Accompanying the Commencement of the Group Tax Sharing System) or any of the items of Article 64-12, paragraph (1) (Gains or Losses on the Fair Valuation of Assets Accompanying Participation in the Group Tax Sharing System); hereinafter the same applies in this paragraph) does not fall under the case specified by Cabinet Order as a case where it has had a controlling interest with the group tax sharing parent corporation pertaining to the group tax sharing corporation (in the case where the group tax sharing corporation is the group tax sharing parent corporation, any of the other group tax sharing corporations) continuously from the day five years before the day on which the group tax sharing approval became effective or the date of establishment of the group tax sharing corporation, whichever is later, until the day on which the group tax sharing approval became effective (excluding, in the case where the group tax sharing corporation is a group tax sharing subsidiary corporation, the case where the group tax sharing approval has ceased to be effective under Article 64-10, paragraph (5) or paragraph (6) (Cancellation of the Group Tax Sharing System, etc.) during the period from the day on which the group tax sharing approval became effective for the group tax sharing corporation until the day of the end of the business year of the group tax sharing parent corporation pertaining to the group tax sharing corporation containing that day (excluding the case where it ceased to be effective due to a merger in which the group tax sharing corporation is the acquired corporation and another group tax sharing corporation is the acquiring corporation having been effected or due to the residual assets of the group tax sharing corporation having been determined)), and does not fall under the case specified by Cabinet Order as a case where the group tax sharing corporation and another group tax sharing corporation conduct business jointly after the group tax sharing approval became effective for the group tax sharing corporation, when the group tax sharing corporation has commenced a new business on or after the day on which it last came to have a controlling interest with the group tax sharing parent corporation pertaining to the group tax sharing corporation (in the case where the group tax sharing corporation is the group tax sharing parent corporation, the day on which it last came to have a controlling interest with the one, among the other group tax sharing corporations, whose day of last coming to have a controlling interest with the group tax sharing corporation is the earliest; hereinafter referred to as the "date the controlling interest arose" in this paragraph and item (i) of the following paragraph), the net operating loss on the transfer of specified assets that arises in the application period of the group tax sharing corporation (meaning the period from the day on which the group tax sharing approval became effective or the first day of the business year containing the day on which the business was commenced, whichever is later, until the day on which three years have elapsed from the day on which the approval became effective or the day on which five years have elapsed from the date the controlling interest arose, whichever is earlier) is excluded from deductible expenses, when calculating the amount of income of the group tax sharing corporation for each business year.

②The net operating loss on the transfer of specified assets prescribed in the preceding paragraph means the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i):

③In the case where the group tax sharing corporation prescribed in paragraph (1) is a corporation showing a loss, etc. prescribed in Article 60-3, paragraph (1) (Net operating loss on Transfer of Assets of Corporations Showing a Loss, etc. Controlled by Specified Shareholders) (referred to as a "corporation showing a loss, etc." in the following paragraph) and the group tax sharing approval became effective within the application period prescribed in paragraph (1) of that Article, the provisions of paragraph (1) pertaining to the group tax sharing approval do not apply to the assets held by the group tax sharing corporation.

④In the case where the group tax sharing corporation prescribed in paragraph (1) has become a corporation showing a loss, etc. on or after the day on which the group tax sharing approval became effective and the application period prescribed in Article 60-3, paragraph (1) has commenced, the application period prescribed in paragraph (1) is to end on the day preceding the first day of the application period prescribed in paragraph (1) of that Article.

⑤In the case where, on or after the day on which the group tax sharing approval became effective with regard to the group tax sharing corporation prescribed in paragraph (1), a specified qualified organizational restructuring, etc. prescribed in Article 62-7, paragraph (1) (Exclusion of Losses on the Transfer of Specified Assets from Deductible Expenses) in which the group tax sharing corporation is the acquiring corporation, the succeeding corporation in a company split, the corporation receiving a capital contribution in kind or the corporation receiving a distribution in kind has been effected between the group tax sharing corporation and a corporation with a controlling interest (meaning a corporation that has a controlling interest with the group tax sharing corporation), and the covered period prescribed in that paragraph has commenced, the application period prescribed in paragraph (1) is to end on the day preceding the first day of the covered period prescribed in paragraph (1) of that Article.

⑥The amount that may be deducted from the net operating loss on the transfer of specified assets prescribed in paragraph (1) and other necessary matters concerning the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

Beyond what is provided for in Subsection 2 to the preceding Subsection (Calculation of the Amount of Income), the necessary matters concerning the calculation of the amount of income for each business year are specified by Cabinet Order