Article 1
Special juristic persons having a principal place of business in the area where the present law is in force shall be liable to pay special juristic persons tax in accordance with the provisions of the present law.
Article 2
"Special juristic persons" within the meaning of the present law include the following juristic persons:
1. Industrial associations and federations of industrial associations. 2. Commercial associations and federations of commercial associations (excepting those which do not require contributions of their members, member associations or member federations). 3. Manufacturers' associations and federations of manufacturers' associations (excepting those which do not require contributions of their members, member associations or member federations). 4. Exporters' associations and federations of exporters' associations (excepting those which do not require contributions of their members, member associations or member federations). 5. Fishers' cooperative associations and federations of fishers' associations. 6. Joint-facilities associations for sericulture. 7. The Central Chest for Industrial Associations. 8. The Central Chest for Commercial and Manufacturers' Associations.
Article 3
The special juristic persons tax shall be imposed on surplus funds of special juristic persons.
Article 4
The calculation of the surplus funds of a special juristic person shall be made by deducting gross losses from gross profits during each business year.
In the calculation of surplus funds referred to in the preceding paragraph the amount of dividends in accordance with the volume and value of commodities handled and the extent of business carried by special juristic persons shall be included in the loss.
In the calculation of surplus funds referred to in the first paragraph the amount which has been or is to be paid by a special juristic person in each business year as special juristic persons tax shall not be included in the loss.
In the calculation of surplus funds referred to in paragraph 1, losses sustained during business years which began within three years preceding the date of the beginning of the current business year of special juristic persons, and as prescribed by Ordinance, shall be included in the loss.
Particulars of calculation of surplus funds referred to in paragraph 1 other than those provided in the preceding three paragraphs shall be prescribed by Ordinance.
Article 5
In the calculation of surplus funds during each business year of special juristic persons in accordance with the provisions of Article 4, an amount representing 70 per cent of the amount of the interest on national bonds received during the period held, should any be held by such special jurstic [sic] persons, shall be deducted, as prescribed by Ordinance, from the surplus funds of such special juristic persons.
Article 6
If the amount of surplus funds of a special juristic person existing prior to the deduction effected as prescribed by the preceding Article does not exceed an amount corresponding to 3 per cent of the paid-up capital, no special juristic persons tax shall be imposed on such special juristic person.
The calculation of the amount of the paid-up capital referred to in the preceding paragraph shall be made as prescribed by Ordinance.
Article 7
When a special juristic person has been dissolved or extinguished by merger in the course of a business year, the period of time, from
the beginning of such business year to the dissolution or merger, shall be reckoned as one business year.
Article 8
A special juristic person continuing to be in existence after merger or a special juristic person formed by merger shall be liable to pay special juristic persons tax in respect of the surplus funds of the special juristic person extinguished by the merger.
A special juristic person formed on account of division is liable to pay, jointly with the other special juristic person formed on account of the division or the special juristic person continuing to be in existence after the division, special juristic persons tax in respect of the surplus funds of the special juristic person extinguished by division or the surplus funds prior to division of the special juristic person continuing to be in existence after division.
The preceding two paragraphs shall apply with necessary modifications to juristic persons, other than special juristic persons, continuing to be in existence after the merger or division, or organized by the merger or division of special juristic persons.
Article 9
The rate of special juristic persons tax shall be 6 per cent.
Article 10
Every special juristic person liable to pay the tax shall declare the amount of surplus funds to the Government as prescribed by Ordinance, attaching the inventory, the balance sheet, the profit and loss accounts, and the detailed statements of the paid-up capital and of the surplus funds calculated in accordance with the provisions of Article 4 and Article 6, paragraph 2.
The preceding paragraph applies with necessary modifications to the case where a special juristic person has not an amount of surplus funds liable to special juristic persons tax.
Article 11
The amount of surplus funds of a special juristic person shall be determined on the basis of the declaration under the preceding Article. In default of such declaration, or should the declaration be deemed improper, it shall be determined on the basis of investigations by the Government.
Article 12
When it is necessary for the purposes of investigation, the Chief
of the Tax Office or his deputy may question a special juristic person or examine its books, documents and things.
Article 13
When the amount of surplus funds of a special juristic person has been determined in accordance with the provisions of Article 11, the Government shall notify the special juristic person thereof.
Article 14
Should a special juristic person be dissatisfied with the amount notified by the Government in accordance with the provisions of the preceding Article, the special juristic person may, within 20 days from the day of receipt of such notice, apply to the Government for a reinvestigation, stating the cause of its dissatisfaction.
Even when application has been made under the preceding paragraph, the Government will not defer the collection of the tax.
Article 15
When an application has been made under paragraph 1 of the preceding Article, decision shall be made by the Goverment [sic] on the basis of a resolution by the Income Investigation Committee under the Income Tax Law.
The provisions of Article 38 and Article 68, paragraph 2 of the Income Tax Law apply with necessary modifications to the decision of the preceding paragraph.
Article 16
Special juristic persons dissatisfied with the decision under paragraph 1 of the preceding Article may file a petition or bring an action in the Court of Administrative Litigation.
Article 17
Special juristic persons tax shall be collected in respect of each business year.
Article 18
When a special juristic person has been dissolved and distributed the remaining property to the members without paying special juristic persons tax, the special juristic person shall be liable to pay the tax jointly with the liquidator.
Article 19
Persons who have evaded special juristic persons tax by fraud or
other illegal act shall be liable to a fine or minor fine of three times the amount of tax evaded, and the amount of tax involved shall be collected forthwith. But the offence shall not be prosecuted in the case of persons who have confessed it or informed the Chief of the Tax Office.
Article 20
Persons who have refused, impeded or evaded the examination of books, documents and things as prescribed by Article 12 or who have submitted books and documents containing false entries shall be liable to a fine or minor fine not exceeding 1,000 yen.
Article 21
Persons who are or have been engaged in the work of investigating or reinvestigating the surplus funds of special juristic persons and have disclosed, without just cause, any secret of which they have gained knowledge by virtue of such investigation or reinvestigation shall be liable to a fine not exceeding 1,000 yen.
Article 22
The provisions of Article 38, paragraph 3, proviso thereto, Article 39, paragraph 2, Article 40, Article 41, Article 48, paragraph 2, Article 63 and Article 66 of the Criminal Code shall not apply to persons who have committed the offence in Article 19 of the present law.
Supplementary Provisions
The present law shall be enforced as from April 1, 1940.
The application of the present law shall begin with the business year ending immediately after April 1, 1940.
The application of special juristic persons tax in accordance with the present law shall end with the business year ending on December 31 of the year immediately following the year of the termination of the China Affair.
"No. 20 Special Juristic Persons Tax" shall be inserted in Article 1, paragraph 1 of Law No. 21 of the 40th year of Meizi (1907).1
1 Article 1, paragraph 1 of Law No. 21 promulgated, on March 27, 1907, in respect of taxation in Karafuto (Japanese Saghalien) reads as follows:—"The following taxes shall be imposed and collected in Karafuto" and gives the names of taxes.