OFFICIAL GAZETTE

Article 12-(2). The provision of the preceding
paragraph shall not apply to a case where the
effect that the balance between the actual amount
of assets and the amount entered in the
inventory is included into business expenses according1
to the preceding Article is not stated
in the return under Articles 18 to 21 inclusive
of the Law.
The provision of Art. 9 par. 2 shall apply
mutatis mutandis to the case under the preceding
paragraph.
In Article 16, "the paid-up amount" shall be
amended as "the face value (as for the share
of a corporation issuing no-par stock, the amount
obtained by dividing the amount of capital of the
corporation concerned at the time when the share
was redeemed by the total number of the issued
stock) ".
Article 17-(3) shall be amended as follows:
Article 17-(3). The expenditure incurred to a
corporation as result that the corporation paid
the national tax and the cost to coercive collection
or the imposition of the local public body
in accordance with the provision of Art. 4-(6)
or Art. 4-(7) of the National Tax Collection
Law (Law No. 21 of 1897) or Art. 10-(2) or
Art. 11-(3) of the Local Tax Law (Law No.
226 of 1950) for a delinquent taxpayer (including
a special collector; hereinafter the same)
who is a shareholder, partner or investor (including
the expenditure incurred as a result
that the corporation did not exercise the right
of claiming the compensation accruing because
of the payment) shall not be included in the
business expense in computing the income for
the accounting period for which the expenditure
was incurred.
In case the corporation received money or
other property from the taxpayer under the
preceding paragraph as a result that the corporation
exercised the right of claiming the compensation
in or after the accounting period for
which the expenditure under the same paragraph
was incurred, the amount of the property thus
received up to the amount of the expenditure
under the same paragraph shall not be included
in the gross income in computing the income for
the accounting period in which the corporation
received the money or other property.
In Article 19, "paid-up amount" shall be amended
as "the value" and the following one paragraph
shall be added to the same Article:
With regard to the application of the provision
of the preceding paragraph, the value of
the new share shall be the face value or invested
amount; provided, that if the new share
concerned is the share of the amalgamating
corporation which issued the no-par stock due
to amalgamation, such value shall be the a-
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mount obtained by dividing the increased capital
due to amalgamation (or the amount of capital
at the time of the establishment of the new
corporation, if new corporation was established
due, to amalgamation) by the total number of
the share issued due to the amalgamation conicerned.
In Article 19á"(2) paragraph 1, "the paid-up
amount of new share" shall be amended as "the
paid-up amount for new share"; in paragraph 2
of the same Article, "the book value under the
preceding paragraph" as "the book value to be
given to the old and new shares"; and the following
two Articles shall be added next to the
same Article:
Article 19-(3). In case a corporation has acquired
the share on the following causes in connection
with its owned stock (hereinafter referred
to as "old share" in this Article), the book
value to be given to the old share and the acquired
share (hereinafter referred to as "new
share" in this Article) after the acquisition of
the share shall, if under item 1, be the amount
obtained by dividing the total amount of the
acquisition cost of the old share and face value
of the new share (or the issue price, if the
new share is non-par stock) by the number
of new share acquired for an old share concerned
plus 1, and shall, if under item 2, be the
amount obtained by dividing the acquisition cost
of the old share (if some amount are deemed to
be the amount received as dividend in accordance
with the provision of Art. 9-(6) par. 2
item,4 of he Law due to he transfer to he
capital account under the same item, the acquisition
cost of the old share plus the amount
deemed to be the amount recieved as dividend)
by the same number:
1. If the issuing corporation of the old share
concerned has distributed its profit in stock;
2. If the issuing corporation of the old share
has transferred its reserve to the capital account
and has issued the share due to the
transfer to the capital account.
In case the issuing corporation of shares held
by another corporation transferred its reserve
under the provision of Art. 16 of the Law to
the capital account but did not issue the share
due to the transfer to capital account, the book
value of the share to be given by a holding
corporation after the transfer shall be the ac-
*quisition cost of the share concerned plus the
amount deemed in accordance with the provision
of Art. 9-(6) par. 2 item 4 of the Law
to be the amount received as dividend of profit
for a share concerned due to the transfer.
Article 19-(4). In case a corporation has acquired
the stock due to the splits or consolidation
of shares (hereinafter referred to as "old share"