Page:United States Statutes at Large Volume 40 Part 1.djvu/1090

 1072 srxrrrrrrn comanss. sta. III. cu. 18. 1919. . C0$g,°,_’,§,§i)‘,,;,,ts_ _PROFITS or oom>oaA·r1oNs TAXABLE TO STOCKHOLDERS. °°;’;‘j,,a*{:f,'f_';_‘°  _ Sec. 220. That if any corporation, however created or organized, slslsé $311:;.; Ogscpmggt is islrmsldrt or availedtof igrklil rppurpose of lgevepltling tlhsimposétion - st,md_'o es axuoniss c 0 ersormem ers oug emerum mdmdm of permitting ilis gains and profits to accumulate instead of being divided or distributed, such corporation shall not be subject to the tax imposed by  ection 230, but the stockholders or members thereof shall be subject to taxation under this title m the same manner as W and L ppovided in spbdivision (e) of section 218 inhthe sxase of stockholders 8* .¤¤<>9$¤w¤_ o a ersona service corporation except t at the tax imposed by its deduction m com Y ¤u¤z1¤¤¤ms¤rmem· Title llll shall be deducted from the net income of the corporation g°;‘ d I before tlcge comrpgitsstion olf the proportionate share of eacll; stockholder '* °¤°°° P‘“P°S°» or mem er. e act t at any corporation is a mere o comm` pany, or that the gains and prohts are permitted to accumulate eyond the reasona le needs of the business, shall be prima facie evidence of a purpose to escape the surtax; but the fact that the gains and profits are m any case permitted to accumulate and become surplus shall not be construed as evidence of a purpxose to escape the taxhm such cpse  the Comrijissiioneril certifies t atfinhhis)opinion . suc accumu ation IS unreasona e or the purposes o the usiness.
 * ¤¢i)¤i1ieWild Smemm When requested by the Commissioner, or any collector, every corporation shall forward to him a correct statement of such gains and

profits and the names and addresses of the individuals or shareholders who would be entitled to the same if divided or distributed, and of the amounts that would be payable to each. m§*m>’f°°¤” °' *¤ ¤* mmmxr or mx AT sermon. _ Sec. 221. (a) That all individuals, corporations and partnerships ¤f» v¤Y¤b¤¤ ¤¤=¤¤¤*· rn whatever capacity acting, mcluding lessees or mogltlgagors of real or personal property, fiduciaries, employers, and officers and employees of the United States, having the control, receipt, custody, disposal, or payment, of interest, rent, salaries, wages, premiums, gprtiesi tgompessiatrons, alremrrnerxgotrnls, emolunspnts, (pr other e or e rrmna e annu or rr c gains pro ts, an mcome, pg spy éiépriiresident ahen mdivrrfpeall (other isset igcomlslgectsfved as _ V1 en_ rom a corporation_w c is taxa e un er t ti e upon E‘°°’“°”‘ sgnetdmcomeig shall ésxcept in the (pages progiged for in sub%v&s1p11 an eircep as o erwrse provide in re ations rescrr e the Commissioner under section 217) deduct and withhgld from such annual or periodical gains, profits, and income a tax equal to 8 K 't.,,,,,°"°" of .,,,],,,0,,,, per centum thereof: Provided, That the Commissioner may authorize °"°°”· such tax to be deducted and withheld from the interest u on any securities the owners of which are not known to the withiholding agent. 1¤gC'll»°$}u (b) In any case Where bonds, mort es, or deeds of trust, or other _ similar obligations of a corporation contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this title upon the obligee, or to reimburse the obligee for any POYUODQ of the tax, or to payethe interest without deduction for any tax which the obhgor may required or {permitted to pay thereon Tu who whmu or to retain there rom under andy law o the United States, the obligor shall deduct and withhol a tax eqpal to 2 per centum of the_ mterest upon such bonds, mortgages, eeds of trust, or other obhgations, w ether such mterest is payable annuall or at shorter or longer periods and whether payab e to a nonresident alien indi- Pmm vidual or to anind1v1dual citizen or resident of the United States_01' ommmewu owners. to a partnership: Provided, That the Commissioner may authorize such tat to be deducted and withheld in the case of interest upon