Page:United States Statutes at Large Volume 39 Part 1.djvu/802

 SIXTY·FOURTH CONGRESS. Sess. I. C11. 463. 1916. 78] Sec. 301. (1) That eve erson manufacturm` g a YUNWON ux. and other eigplosives, excerirtigg blasting wder and(d;rnglaririi)ei)v1is1e·t1l ermgisémiumdxtilti for industri purposes; cartridges, ldaded and unloaded,caps §,i'§',f“,,,,,;j‘ ‘*°“ig°“‘°°‘ or primers, exc usive of those used for industrial purposes; (c) projectiles, shells, or torpedoes of any kind, including shrapnel, loaded or unloaded, or fuses, or complete rounds of ammunition; (d) firearms of any kind and apppndages, including small arms, cannon, machme guns, rifles, an ayonets; (e) electric motor boats, submarine or submersible vessels or boats; or (f) any part of any of the articles mentioned in (b),_(c), (d), or (e); shall pay for each taxable year, in addition to the income tax imposed by Title I, an excise ¤.ilddm°"°l*°i"°°m° tax of twelve and one-half er centum upon the entire net profits *""‘»P·7°5 actually received or accrued) for said year from the sale or disposition of such articles manufactured within the United States: Provided, however, That no person shall pa such tax upon net rofits  prior z received duringhthe year nineteen hundred, and sixteen derived) from {;“',f'Y *· 191*% ar? the sale and de `very of the articles enumerated in this section under P contracts executed and fully performed by such person prior to January first, nineteen hundred and sixteen. (2) This section shall cease to be of effect at the end of one ear y_,'§§sF'§}gg¤°¤ f¤v• after the termination of the present European war which shag be mm pr°°°°tw°' evidenced by the proclamation of the President of the United States declaring such war to have ended. Sec. 302. That in computing net plrofits under the provisions of rgggwmwn ¤r mt this title, for the purpose of the tax there shall be allowed as deduc- P Decimals. tions from the gross amount received or accrued for the taxable year from the sale or disfposition of such articles manufactured within the United States, the ollowing items: (a) The cost of raw materials enteringsinto the manufacture; mw '§‘“*“*“*S· (b) Running expenses, including renta, cost of repairs and main- B"'“““€°’°P°“°¤· tenance, heat, power, insurance, management, salaries, and wages; mgm (c) Interwt paid within the taxable year on debts or loans con- f tracted to meet the needs of the business, and the proceeds of which have been actual] used to meet such needs; (d) Taxes of allykinds paid during the taxable year with respect to cfm °“ ‘”“*¤°$¤· the business or property relating to the manufzwture; (e) Losses actually sustained within the taxable year in connection ‘·°“°“- with the business of manufacturing such articles, includinrr losses from fire, flood, storm, or other casualty, and not compensated for by insurance or otherwise; and _ (f) A reasonable allowance according to the conditions peculiar to D°P‘°°’°°‘°¤— each concern, for amortization of the values of buildings and machinery, account being taken of the exceptional depreciation of special plants. _ _ _ Sec. 303. If an erson manufactures any article specified m sec- ,,,,;*,*},;**8 ¤° lm thee tion three hundredpand one and, during any taxable year or art s¤¤a1°iial°¤r•i°l;,° !°' P" thereof, whether under any agreement, arrangement, or understandiing, or otherwise, sells or disposes of any such a.rt1cle_at less than the fair market price obtainable therefor, either (a) in such manner as directly or indirectly to benefit such person or any person d.1rectly_or indirectly interested in the busmess of such person, or (b) with D _ _ intent to cause such benefit, the gross amount received or accrued for p,,c§_°°‘“‘*“““°“ °"*“' such year or part thereof from the sale or disposition of such article shall be taken to be the amount which would have been received or accrued from the sale or disposition of such article if sold at the fair II18.I‘l(9li p1`lC8. _ Sworn returns of Sec. 304. On or before the first day of March, nineteen hundred glrc<;;S;¤3¤$;cf{¤“§_¤;_x{r¤d— and seventeen, and the first day of March in each year thereafter, a true and accurate return under oath shall be made by each person manufacturing articles specined in section three hundred and one to the collector of internal revenue for the district in which such person