Article 172Acquisition Cost of Assets Acquired on or before December 31, 1952

①The amount calculated, as prescribed by Cabinet Order, as the value on January 1, 1953 of an asset prescribed in Article 61, paragraph (2) or (3) (Acquisition Costs of Assets Acquired Prior to December 31, 1952) of the Act is the value calculated, in accordance with the condition of that asset on that day, by the method determined and publicly announced by the Commissioner of the National Tax Agency as to be used on that day for the calculation of the tax base for inheritance tax and gift tax with regard to that asset.

②Where the asset prescribed in the preceding paragraph is one that has been revalued under Article 8, paragraph (1) (Revaluation of Depreciable Assets of Individuals) of the Assets Revaluation Act (Act No. 110 of 1950) (including where applied mutatis mutandis under Article 10, paragraph (1) (Revaluation Where Non-Business Assets Are Put to Business Use) of that Act) or Article 16 (Succession of Revaluation upon Death) of that Act, if the value calculated for that asset under the preceding paragraph is less than the revaluation amount prescribed in Article 2, paragraph (3) (Definitions) of that Act pertaining to that revaluation, the amount calculated, as prescribed by Cabinet Order, as the value on January 1, 1953 of that asset prescribed in Article 61, paragraph (2) or (3) of the Act is, notwithstanding the preceding paragraph, that revaluation amount.

③The value on January 1, 1953 of the asset prescribed in Article 61, paragraph (3) of the Act, calculated as prescribed by Cabinet Order on the basis of the sum of the amount required for the acquisition of the asset and the amounts of equipment expenses and improvement expenses expended before that day, is the amount equivalent to the amount that would be treated as the acquisition cost of the asset under Article 38, paragraph (2) (Acquisition Costs Deducted to Calculate Capital Gains) of the Act if that paragraph were applied on the assumption that a transfer of assets had taken place with respect to the asset on that day.