Page:United States Statutes at Large Volume 42 Part 1.djvu/276

 248 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. ’N°°”“ TAL corporation for the taxable year in the same manner as providedjn subdivision (a) of section 218 in the case of members of a partnership. b,@‘Q,*},;},<;•;,g{,g°*`P°s° The fact that ·any corporation is a mere holding company, or that ` the gains and roiits are permitted to accumulate beyond the reason- to escape the surtax; but the fact that the gains and pfodts are in any case ermitted to accumulate and become surplus s all not be construed as evidence of a urpose to escape.the tax in such case unless / the Commissioner certiiiies that in his opinion such accumulation is ,,f,,f,$,'§,°m§’§§_ °‘,§“i‘§; unreasonable for the purposes of the business. When repgliested by made} ’ the Commissioner, or any collector, every corporation sh forward ` to him a correct statement of such gains and profits and the names and addresses of the individuals or shareholders who would be entitled to the same if divided or distributed, and of the amounts that would be payable to each. Soggcigfnmt °f rx at PAYMENT or ·INDIVIDUAL’S TAX AT sounon. ,,,§§,,',’{”$,“1,,i,’*§,,§",`;§,’,lf§Q Sec. 221. (a) That all individuals, corporations, and partnerships, P°·Y°b1°*h°’°°*· in whatever capacity acting, including lessees or mortgagors of real or » personal fproperty, iiduciaries, employers, and all officers and employees o the United States having the control, receipt, custody, disposal, or payment of interest (except interest on deposits with gersons carrying on the banking business paid to persons not engage in business in the United States and not having an office or place of business therein), rent, salaries, wages, premiums, annuities, compensations, remunerations, emol11ments, or other iixed or determinable annual or periodical gains, profits, and income, of any nonresident alien individual or partnership composed in whole or in part of nonresident aliens (other than income received as dividends of the class allowed as a credit bfy subdivision (a) of section 216) shall (except in the cases provided or in subdivision (b) and except as otherwise provided in regulations lprescribed by the Commissioner under section _ 217) deduct and withho d from such annual or periodical gains, roiits, {,',1§g;,,,.,,,,,:,,,,,,,,,, and income a tax equal to 8 per centum thereof: Provided, Tliiat the ¤v¤¤•>r¤i¤<=1¤<¤¤d· Commissioner may authorize such tax to be deducted and withheld from the interest upon any securities the owners of which are not known to the withholding agent. . ,g§gg,,$g°gggg;*,’,gg,§ (b) In any case where bonds, mortgages, or deeds of trust, or tame com ax. other similar obligations of a corporation contain a contract or provision by whici the obligor agpees to pay any portion of the ax impose by this title upon the o ligee, or to reimburse the obligee for any portion of the tax, or to pa the interest without deduction for any tax which the obligor may be required or ermitted to pay thereon, or to retain therefrom under any law of tlile United States, raxretewiumea. the obligor shall deduct and withhold a tax equal to 2 per centum of the interest upon such bonds, mortgages, deeds of trust, or other obligations, whether such interest is ayable annuall or at shorter or longer periods and whether payablle to a nonresidlient alien individual or to an individual citizen or resident of the United States gggggom mmm or to a partnership: Provided, That the Commisnoner may authorize , such tax to be deducted and withheld in the case of interest upon _ _ any such bonds, mortgages, deeds of trust, or other obligations, the 0,E§,@‘°§,$”c‘;§§,§§ owners of V\’l11Ch’81’B not known to the withholding agent. Such med by individual- deduction and withholding shall not be required in the case of 2. citizen or resident entitled to receive such interest, if he files with the withholding agent on or before February 1 a signed notice in writin _ _ claiming the benefit of the credits provided in subdivisions (c) and N°¤¤·¤d¤¤*¤l*°¤S· (d) of section 216; por H1 the_case of a nonresident alien individual 1f so prov1ded_ for in regulataons prescribed by the Commissioner under subdivision (g) of section 217. ·
 * 1) able needs of tihe business, shall be prima facie evidence of a purpose