Page:United States Statutes at Large Volume 40 Part 1.djvu/1098

 1080 SIXTY-FIFTH CONGRESS. Sess. III. Ch. 18. 1919. “‘°°“ "·*X· of such redetermination shall be creilited 01* refunded to the taxpayer . . in accordance with the rovisions 0 section 252. gggitiiizisptiiiiigii (b) In the case of a fiireign corporation the deductions allowed in l§}‘§‘,‘§s‘{SS m Ummd subdivision (a), except those allowed in {paragraph (2) and in clauses (a), (b), and (c) of paragraph (3), shall e al owed only if and to the extent that they are connected with income arising from a source within the United States; and the proper apportionment and allocation of the deductions with respect to sources of income within and without the United States shall be determined under rules and regulations prescribed by the Commissioner with the approval of the Items notdeductible. SGCH-}ta'ry' ITEMS Nor DEDUOTIBLE. §°,j@‘f§',?§’§§l,?Y‘d““ls‘ Sec. 235. That in computing net income no deduction shall in any case be allowed in respect of any of the items specified in section 215. C’°‘““ °u°“’°"· CREDITS ALLOWED. D¤sis¤=¤i<>¤ <>f· Sec. 236. That for the purpose only of the tax imposed by section 230 there shall be allowed the following credits: ,,,§f"‘§,§‘f,§,,§“,,,,§l°‘l°’“l* (a) The amount received as interest upon obligations of the ’ United States and bonds issued by the War Finance Corporation, which is included in gross income under section 233; ¤;;§_md °X°°SS pm tb) The amount Of an taxes imposed by Title III for the same Prom- _ taxable year: Promkled, That in the case of a corporation which ,,,fQ‘F°°" Vw °""”‘g makes return for a fiscal year beginning in 1917 and ending in 1918, <>¤¤¤1>¤t=¤ti¤¤· in computing the tax as provided in subdivision (a) of section 205, the tax computed for the entire period under Title II of the Revenue Act of 1917 shall be credited against the net income computed for the entire period imder Title'I of the Revenue Act of 1916 as amended b the Revenue Act of 1917 and under Title I of the Revenue Act ‘m°“’”°°°‘ of, 1917, and the tax computed for the entire eriod under Title III of this Act at the rates prescribed for the caliindar year 1918 shall be credited against the net income computed for the entire period Domestic www under this title; and tions,$2,000. (c) In the case of a domestic corporation, $2,000. P¤Y*¤°¤”¤”°“’°°· PAYMENT or Tax AT sormcn. ,,3; ,fg{§§_¥'{)\,g’{’¤'¥_fs‘;F,”;j S1-Ze. 237. That in the case of foreign corporations subiect to imma sam. taxation under this title not engaged in trade or business wit nin the United States and not having an office or place of business therein, there shall he deducted and withheld at the source in the same manner and upon the same items of income as is rovided in section 221 ·‘”“· 1*- *072- a tax equal to 10 per centum thereof, and sucii tax shall be returned PWM and paid in the same manner and subject  the same conditions 35 Interest free gm, provided in that section: Provided, That in the case of interest “"· described in subdivision (b) of that section the deduction and W1fhholding shall be at the rate of 2 per centum. Credit for taxes. cannrr ron TAXES. mggjmsm _°°rp°m` SEc._ 238. (a) That in the case of a domestic corporation the total ,,,§°‘*,g°}*§;‘;$¢;Q§·`”@ taxes Imposed for the taxable year by this title and by Title H1 péssessxm. shall be credited with the amoimt of any income, war-pronts and excess—profits taxes paid dud? the taxable year to any foreign country, uppn income derived om sources therein, or to any pos- Redetemimmm if session of the United States. ’ pem_m»;s mae from If_ accrued taxes when paid differ from the amounts claimed as °‘°°"*°““‘“""d*“‘*’· credits by the corporation, or if any tax paid is refunded in whnlé