Page:United States Statutes at Large Volume 40 Part 1.djvu/1112

 1094 srxrirrrrrn CONGRESS. sms. III. oa. 18. 1919. "“*“,‘.;,,"*§g§” ”°" In cases in which the tax is to be computed under this section, if hs<;¢E¤g;¤g§9¤;_ ir su the tax as computed without the benefit o this sectron is less than 50 ° “`°°°“’ per centum of the net income of the taxpayer, the installments shall I,mm_ in the first instance be computed upon the basis of such tax; but if the tax so computed IS 50 pig centum or more of the net mcome, the m- stallments shall in the t instance be computed upon the basis of a D _ _ I tax equal to 50 per centum of the net income. In any case, the m1?§i?I§’€°°°° °°r` actual ratio when ascertained shall be used in determining the cor- Subsequent P ,, y - rect amount of the tax. If the correct amount of the tax when de- ”‘°”*· termined exceeds 50 per centum of the net income, any excess of the correct installments over the amounts actually paid shall on notice and demand be paid together with interest at the rate of of 1 per dpntum per month on such excess from the time the inst ent was ue. c,§,§{’“°°'d°°°”‘“°d (c) The Commissioner shall keep a record of all cases in which the tax is determined in the manner prescribed in subdivision (a), containing the name and address of each taxpplyer, the business in which en- _ gaged, the amount of invested capit and net income shown by the g,§,f°"“““°“ *° °°°‘ return, and the amount of invested capital as determined under such subdivision. The Commissioner shall furnish a copy of such record and other detailed information with respect to such cases when re- A 1 qlpired by resolution of either House of Congress, without regard to "”’ p' °8°‘ the restrictions contamed m section 257. R°°’g"‘““‘"°"’· Parrr VI.—REORGANIZAHONS. ¤£iii$Ié°¤i1¤Ifi¤ly¤ltii»1.ii Sec. 330. That in the case of the reorganization, consolidation, or § °“‘°" p“" change of ownership after January 1, 1911, of a trade or business now carried on by a corporation, the corporation shall for the purposes of this title be deemed to have been in existence prior to that date, and the net income and invested capital of such predecessor trade or business for all or any part of the prewar riod prior to the organization of the corporation now carrying on suchetrade or businem shsdll be deemed to have been the net income and invested capital of suc co ration. p§ii°£i1p°l·»I mm-  sui:-goglredecessor trade or business was carried on by s;1partner— ""’““ °“‘“‘°“‘ ship or in `vidual the net income for the prewar riod sh under regulations prescribed bg the Commissioner with ig; approval of the Secretary, be ascertaine and returned as nearly as may be upon the Dmcum mowed same basis and in the same manner as provided for corporations_ lll ' Title II, including a reasonable deduction for salary or compensation go ealch partner or the individual for personal services actually ren- 0, ere. mir 1, $j¤ir_ xi; In the case of the organization as a corporation before July 1, 1919, ,v,§§`§’;;’§“,§‘,°§Sd“‘,%°§,?;: of any trade or business in which capital is a material incomcyprir {gym ¥¤¤¤=¤‘¥ ducing factor and which was previously owned by a partnership 01‘ mdrvidual, the net mcome of such trade or busmess from January li 1918, to the date of such reorganization may at the option of the individual or partnership be taxed as the net income of a corporation is taxed under Titles II and IH; in which event the net income and invested capital of such trade or business shall be computed as Undismbmd wm 1f such corporationliad been in existence on and after January L me my be taxed to 191§, and the undistributed profits or earnings of such trade or "’°""m°S’°°°‘ business shall not be subject to the surtax imposed in section 211, but amounts distributed on_ or after January 1, 1918, from the earnings of such trade or business shall be taxed to the recipients as dividends, anld gl] dhe provisionsbpf Tides II ailid HI relating to {f¤¤·*°·*, · _ corpora ionss a so ar as ractica e a to suc trade or usmessi (spate. m°°m° ex Provided, That this paragrgph shall not iiiigly to any trade or busin0S¤