Page:United States Statutes at Large Volume 40 Part 1.djvu/354

 SIXTY·FIFTH CONGRESS. Sess. I. C11. 63. 1917. 335 interest paid by such corporation, company, or association within the ¤*°°*¤u'{_g_s *****1***- year on any such indebtedness may be deducted as a. part of its ` expenses of doing business, but interest on such indebtedness shall only Li’“m‘°°“‘ be deductible on an amount of such indebtedness not in excess of the No momma for actual value of such property collateral: Provided {urther, That in bonds guaranteed rm the case of bonds or other indebtedness, which have een issued with l'°"‘ °°"‘ a guaranty that the interest payable thereon shall be free from taxation, no deduction for the payment of the tax herein imposed, or any Mgmt bm: d other tax aid pursuant to such guaranty, shall be allowed; and in pom wovggd, °' the case ofp a bank, banking association, loan or trust company, interest paid within the year on deposits or on moneys receive for investment and secured by interest-bearing certificates of indebtedness issued by such bank, banking association, loan or trust company shall be deducted; Gm I tu "Fourth. Taxes paid within the year imposed b the authority 1...,.,*}}.*32 misgmss of the United States (except income and excess profits taxes), or of P'°“‘S °‘°°P"°d· its Territories, or possessions, or any foreign country, or by the authority of an State, county, school district, or municipality, or other taxinag sulldivision of any State, not including those assessed against loc benefits." hmm mum (2) Paragraphs third and fourth of subdivision (b) of section ven. siirpp. ved twelve of such Act of Se tember eighth, nineteen hundred and six- °"§‘,§',;’,§,§;,,,,s ,,0,,, ,,,_ teen, are hereby amendedp to read as follows: °¤g`¤m¤gsQ¤;#$ §;*•>g; "Third. The amount of interest paid within the year on its indebt- assumes. _ edness (except on indebtedness incurred for the purchase of obliga- ,,,§§,j'§_P“““"'““””*' tions or secmities the interest upon which is exempt from taxation as income imder this title) to an amount of such in ebtedness not in excess of the proportion of the sum .of (a) the entire amount of the paid-up capital stock outstanding at the close of the year, or, if no capita stock, the entire amount of the capital employed in the business at the close of the year, and (b) one—half of its mterest-bearing indebtedness then outstanding, which the gross amount of its income for the year from business transacted and capital invested within the United States bears to the gross amount of its income derived ,,,,,,,_,,,_ from all sources within and without the United States: Promkied, N¤ ¤¤¤w¤¤·¤¤ M That in the case of bonds or other indebtedness which have been ¢}b°:?.lS¤¤”im°°°°° "°° issued with a guaranty that the interest payable thereon shall be free from taxation, no deduction for the payment of the tax herein imposed or any other tax paid pursuant to such guaranty shall be allowed; and in case of a ank, bankindg association, loan or trust p§ft°§Y,°§°,£2d?°“k °°' company, or branch thereof, interest pai within the year on deposits by or on mone received for investment from either citizens or residents of the Usnited States and secured by interest—bearing certificates of indebtedness issued by such bank, banking association, loan or trust company, or branch thereof; Gum, tm, in " Fourth. axes aid within the year imposed by the authority of United Swish the United States gxcept income and excess profits taxes), or of its p¤ii°t°im•¤°i¤¤;°¤se.°x°°¤ Territories, or possessions, or by the authority of any State, county, school district, or munici alit, or other taxing subdivision of any State, paid within the States, not including those assessed against local benefits/’ R I Sec. 1208. That subdivision (e) of section thirteen of such Act of vox. ae, p. m, September eiglhth, nineteen hundred and sixteen, is hereby amended °""’“°°°‘ to read as fo ows: F mmm “ (e)   the provisions of this title relating to the tax authorized r$%¤$°§rpr¤¤ non; émd required to be deducted and withheld and paid to the officer of '§§§l°'{§ {Elm °HlJlI . . Pm the United States Government authorized to receive the same from **°¤·”· 1heincome of nonresident alien individuals from sources within the United States shall be made applicable to the tax imposed by subdivision (a) of section ten upon incomes derived from interest upon