We introduce extinctive prescription, its verification and start for it in tax law
By tax law, extinctive prescription is defined to be 7 years, but there is a difficult problem to verify the start of the prescription. What is most important is that those who donated and were donated must recognize the difference of donated and being donated. Those who were donated are authorized to be donated solely in case where he or she controls and uses it at its discretion
Even if grandfather insists that the prescription is effective as he donated term deposit to 5 year old grandchild 10 years ago by taking advantage of extinctive prescription, it is difficult to assume that the grandchild understands the donation of the deposit as well as to control and use it at its discretion. For this reason, the deposit is authorized to be grandfather’s possession
Even if claim of the receivables is extinguished by extinctive prescription, the deductible expense is not authorized in taxation unless it is confirmed by verification by means of content-certified mail. In other words, it is possible that the deposit can be donated unless it is verified
Extinction of prescription for receivables and claim is different, and we list it below. Please use it for reference
We provide consultation for verification of extinctive prescription to customers who have the contract of tax accountant consultation and social insurance consultation with us at free of charge
We do not accept consultation for verification of extinctive prescription from customers other than those who have consultation contract with us by e-mail or telephone except where they visit us
Administrative scrivener consultation
| Year of extinctive prescription | |
|---|---|
| Claim for salary of short-time employment (salary not eligible by labor standard law) Staying fee at Japanese inn and hotel, taxi fare, expense for transportation, bill at bar, rental fee, bill endorser, claim for drawer of bill of exchange | 1 year |
| Claim for salary of worker (eligible by labor standard law), Transaction amount in business (trade receivable), attorney’s fee, monthly tuition for cram school, distribution of property by divorce, |
2 years |
| Claim for damage compensation caused by illegal act such as traffic accident Medical expense, preparation fee, claim for contract fee of construction, alimony by divorce, drawer of promissory note, claim for undertaker of bill of exchange, |
3 years |
| Receivables by commercial activity, loan of consumer finance, periodical receivables such as rent and rent of land, claim for retirement allowance, receivables of doctor, |
5 years |
| Transaction amount between individuals, borrowing and lending of money between individuals, receivables ruled by trial, claim for returning deposit and guarantee deposit, |
10 years |