Page:United States Statutes at Large Volume 39 Part 1.djvu/779

 758 SIXTY-FOURTH CONGRESS. Sess. I. Ch. 463. 1916. ¤*¢¤>¤¤= ¤‘¤· the income is returned for the purpose of thetax by the beneiciary, to be assessed to the executor, administrator, or trustee, as the case ,*,Zy,°‘*°· mm, db may be: Promkled, That where the income is to be distributed annually ¤·¤>uw£. or regularly between existing heirs or legatees, or beneficiaries the rate of tax and method of computing thesame shall  based m each case u n the amount of the indivi nal share to be distributed. · '1‘¤¤¤¤·¤¤ ·¤d °F*"' Sucllfctrustees, executors, administrators, and other fiduciaries are ¥}`i$i§`¥i°&irl¤iil°mmu°d hereb idemniiied against tlieclaims or demands  every benedciary for allypayments of taxes which they shall be required to· make under the provisions of this title, and theg shall have credit for the amount of such ayments against the ben ciery or principal in any accounting   tlieay make as inch trustees  other iciducuzndeato th  °°*’-“"°“‘§’° c Fort urpose ascertainin egam in e_ e i.°igi¤r·°d Mm 1% or other dis Rtion of property, refl, personal, or mixed, acquired before Marcgoirst, nineteen hundred and thirteen, lthe fan- market price or value of such tpxrogerty as of  ·mneteen hundred and thirteen, shall be e asis for determming the amount of such gain derived. ‘ · ‘P¤¤i¤¤¤>¤*=¤¤ !¤¤f— annmoiwsn rex mcnnnns Uimzsramvrnn rnorrrs. ¤¢¤¤•.¤f mmm? Sec. 3. For the e of the additional tax, the taxable income ` titled of the gains and pmfits, if divided or distributed, whether divided or distributed or not, of all corporations, joint-stock companies or associations, or imnrance collitnpanies, however created or organized, formed or fraudulently ave` of for the p of pre- , venting the im ition of such tax through the medium of gfrmitting c, such gains angogroiits to accumulate instead of being `vided or g°vig¥»  distributed; and the fact that any such corporation, joint-stock _ company, or that the gains and profits are permitted to accumulate ¤U"}"m° °°°°`°°` beyond the reasonable needs of the business, shall be prima facie evidence of a fraudulent purpose to escape such tax; but the fact that the gains and profits are in any case permitted to accumulate and become surplus shall not be construed as evidence of a ripgrpose to escape the said tax in such case unless the Secretary of the as shall certify that in his opinion such accumulation is umeasondlillli m$_;,,”'?*_,:’“ "°“' Iorthe puliiposes of the business. Ylflienreqriestegl by the Commissioner of Intern Revenue, or any district collector of intemal revenue, such corporation, joint-stock company or association, or insurance company shall forward to him a correct statement of such and prohts and the names and addresses of the individuals or s areholders who would be entitled to the same if divided or distributed E’¤“P““°* mcoim nxmayr mom mw. B°°’°•"P°°m°d· figclé 4,dThe following income shall be exempt from the provisions o ti e: dj? *¤’°"”°° P°“‘ The proceeds of life insurance policies paid to individual beneficiaries upon the death of  insured; the amount received by the _, as a return of premium or premiums paid by him imder life msurance, endowment, or annuity contracts, either during the term or at the maturigg of the term mentioned in the contract or upon °“¤··°¤· the surrender of e contract; the value of property acquired by {It bequest, devise, or descent (but the mcome from such property s all ,,_*g;¤,[•·,;*m°fj 0%*,;; be included asincpme);1nterest upon the ob ations of a State or any ues. gehtical subdivision thereof or upon the ob ations of the United mm d i the Federal farm loan Act of Jullgaseventeentli, nineteen hundred and ,,,,,,m,'2,,_ “’ “‘ ¤1Xl>¤¤¤; l·h6 ¤0¤1P¤¤S¤l>10¤ Of present President of the United
 * .§‘.;...‘1“&..°°* ‘° ""* or my maivadun ghilii mciuae the stm to which he weuid be ei-
 * °·'°**”¤~ compmy or association, or insurance company is a mere holding
 * ·P·’°°· tates or its possessions or securities issued under the revisions of