Toyo Kisen Kaisha that the company had no assets within the reach
of the revenue authorities of this country and that there would be
no cooperation in respect of collection of the taxes ultimately deter-
mined to be due by the Board or the courts. In short, the United
States Government was forced to take the action in question because
a jeopardy situation was definitely presented in that case. As stated
above, it is not anticipated that such a necessity will arise in the cases
of the Nippon Yusen Kaisha and the Osaka Shosen Kaisha.
  It is evident that the second immediate interest of the Charge
d'Affaires of the Japanese Government has reference to the ninety-
day period within which a petition to the United States Board of
Tax Appeals must be filed, when he suggests that collection be not
enforced immediately upon the expiration of the ninety days. The
ninety-day period within which a taxpayer may file a timely petition
with the United States Board of Tax Appeals, for the redetermination
of its tax liability, is a jurisdictional provision of the appropriate
Congressional enactment and is not a mere rule of convenience of
the Treasury Department capable of extension by this department.
There is no intention or disposition, upon the record as it now exists,
to attempt immediate collection if a timely petition is filed with the
Board of Tax Appeals; but if such timely petition be not filed the
statutes of the Congress in such cases require that the imputed tax be
collected and the taxpayer left to his remedy by way of filing claim
for refund.
  According to the records of this office, a petition has been filed in
the case of Toyo Kisen Kaisha. The taxpayers' representatives are
well advised as to the requirements of the law in this respect and no
doubt an appropriate petition will also be filed prior to September 10,
1934 (the date of the expiration of the ninety-day period within which
a petition should be filed) with respect to the other companies.
  I think it is entirely appropriate that your Department advise the
representatives of the Japanese companies that there is every disposi-
tion on the part of the Treasury Department to discuss and to settle
amicably the tax dispute under consideration.
  Respectfully,                               H. MORGENTHAU JR.

811.512394 Shipping/42
The Chief of the Division of Far Eastern Affairs (Hornbeck) to the
                  Amrbassador in Japan (Grew)

                                  WASHINGTON, September 17, 1934.
  DEAR MR. GRBw: I have your letter of August 24, 1934, with en-
closures, in regard to income taxes assessed on Japanese shipping
companies by the United States Treasury authorities.



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JAPAN