Press translations [Japan]. Economic Series 0157, 1946-01-13.

ITEM 1 Draft Bills for Three Taxes Revealed - Nippon Sangyo Keizai - 11 Jan 46. Translator: S. Kinoshita.

• I. General Provisions
• A. Tax - payers.
• 1.Any person living or having property in the localities where the law takes effect at the date of investigation.
• 2.Any corporation having main offices or property in the localities where the law takes effect at the date of investigation. The date of investigation is to be settled by the ordinance.
• B. Taxable Items.
• 1.The entire property of any individual person who has resided for more than one year or has had residence in the locality where the law takes effect at the date of investigation, and the entire property of corporations having main offices in the locality where the law takes affect at the date of investigation. Individual persons not falling under the above category and corporations having property in the locality where the law takes effect are taxed on the property in that locality.
• 2.Property tax is classified as individual property tax and corporation property tax.
• II. Personal Property Tax
• A. Appraising Taxable Value.
• 1.The value of property at the date of investigation, minus liabilities including public imposts of individual persons having residence or

•   ECONOMIC SERIES: 157 (Continued) ITEM 1 (Continued) having lived more than one year in the locality where the law takes effect end the value of property in the locality of an individual not falling under the above category, is taxable.
• 2.Donations made during a specified period preceding the date of investigation are calculated as a part of the donor's assests. In this case, the recipient is obliged to pay the tax, but the donor should also share the responsibility of the tax - payment.
• 3.The income and temporary profit taxes for 1946 are considered as part of the liabilities.
• B. Non - Taxable Property. The property tax is not levied on properties necessary for daily living, such as furniture and clothing.
• C. Exemption from Tax.
• 1.A certain fixed amount of specified deposits and savings is exempted.
• 2.Pensions or allowances paid in lump suns for death or injury caused by the war are exempted.
• 3.Property of air raid sufferer's not exceeding 10,000 yen is exempted.
• 4.The amount of property increase tax paid by any individual is deducted from his property value.
• 5.In addition to the above enumerated exemptions, an amount of 2,000 yen per household is reduced from the value taxable.
• 6.If the property value minus the above enumerated exemptions amounts to less than 20,000 yen, no property tax is imposed.
• D. D. Taxation Rate.

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  Upon amounts not exceeding
  30,000 yen	ten per cent
  Upon amounts exceeding
  30,000 yen	15 per cent
  50,000 yen	20 "
  70,000 "	25 "
  100,000 "	30 "
  200,000 "	35 "
  500,000 "	40 "
  1,000,000 "	45 "
  2,000,000 "	50 "
  5,000,000 "	55 "
  10,000,000 "	60 "
  20,000,000 "	65 "
  50,000,000 "	70 "

• E.Properties of the members of a household are to be added to those of the head of the household. The tax is to be imposed upon the combined total at the corresponding rate.
• III. Corporation Property Tax.
• A. Appraising the Taxable Value.
• 1.For corporations having main offices in the localty where the law takes effect at the date of investigation, the property value, minus - 2 -

•   ECONOMIC SERIES: 157 (Continued) ITEM 1 (Continued) the amount of liabilities including paid-up capital and investment, is taxable. For a corporation not falling under the above category, the value of the property in the locality, minus the amount of liabilities relative to that property, is to be assessed as taxable.
• 2.Contributions made by a corporation during a specified period preceding the date of investigation are not to be considered as loss accounts.
• B. Non-taxable Corporations. Public organizations specified by ordinance are exempted from taxation.
• C. Non-taxable Property of Corporations. Property tax is not imposed upon properties owned by corporation of public organizations such as schools, libraries, hospitals, and properties belonging to religious organizations.
• D.The amount of the corporation property increase tax paid by a corporation is deducted from the taxable value of the corporation's property.
• E.The property tax is not imposed upon a corporation engaged in welfare if its property value does not exceed 30,000 yen.
• F. Taxation Rate.
• 1.For corporations paying corporation taxes

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  On reserve fund,	20 per cent;
  On other properties,	30 per cent.

• 2.For corporations paying special corporation taxes

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  On reserve funds,	15 per cent;
  On other properties,	25 per cent.

• 3.A Corporation not coming under the above two categories is taxed ten per cent on its property value.
• IV. Appraising Property Value.
• A.The appraising of the value of property is based on its market value on the day of examination.
• B.The value of land and buildings will be ascertained by multiplying their rental values by a fixed rate, which is to be decided by the government after consulting the Immovable Property Appraisal Commission formed in each Finance Bureau district.
• C.The value of national bonds, debentures, shares, and other collaterals is based on their market values, and in case the market value is not clear, it is to be decided after considering the property and profits of that corporation.
• D.The value of insurance policies is to be decided by multiplying the paid premium by a fixed rate.
• E.The value of annuities is calculated at compound interest of a certain rate.
• V. Collection of Taxes.
• A.The collection of property taxes will be made once during the 1946-1947 fiscal year. - 3 -

•   ECONOMIC SERIES: 157 (Continued) ITEM 1 (Continued)
• B.The property tax may be paid in cash or national bonds but in specially designated cases it may be paid in kind.
• C.In special cases, the property tax may be paid in four years by individuals, and in two years by corporations. This includes the payment of a certain rate of interest.
• D.In case a corporation is unable to pay the tax according to the above two rules, it must surrender shares equivalent to the amount of the taxes to the Government.
• VI. Kiseellany
• A.The taxable value of property is to be decided by the Government on the basis of investigations made by the Property Investigation Commission. This Commission is formed by committees selected from among civilian experts.
• B.All procedures are patterned after those of the Income Tax Law and Corporation Tax Law.
• C.Chiefs of the tax collection office are entitled to question the tax payers.
• D.Rules of punishment may be made to prevent evasion of payment and such punishment may take the form of five or imprisonment.
• F.A Property Tax Council will be established within the Finance Ministry.

ITEM 2 The Answer to the Demands of Railway Employees - Nippon Sangyo Keizai - 11 Jan 46. Translator: R. Shibata.