Page:United States Statutes at Large Volume 42 Part 1.djvu/335

 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 307 lieu of the tax imposed by section 1200 of the Revenue Act of 1918), °“"·” ‘·*“°‘ ’“· an excise tax equivalent to 10 per centum of the entire net profits ’§‘§¥,,i°’p` lm received or accrued for such year from the sale or disposition of the product of such mine, quarry, mill, cannery, workshop, factory, or m:§nufact11ringI_]elstablishment. H d h f Ns, Proms com- Ec. 1201. at in computing net ro ts un er the revisions 0 P“*°d· . this title, for the purpose of the tax tliiere shall be allowled as deduc- Dductious snowed tions from the gross amount received or accrued for the taxable year from the sale or disposition of such products manufactured within the United States the following items: new mstesms. (a) The cost of raw materials entering into the production; Operating expenses. (b) Rimning expenses, including rentals, cost of repairs, and maintenance, heat, ower, insurance, management, and a reasonable allowance for sallaries or other compensations for personal services actual] rendered, and for de reciation; _ (c) liiiterest paid within tliie taxable year on debts or loans con- ,,,,I§t§§§’,Sé_ °” bu"` tracted to meet the needs of the business, and the proceeds of which have been actual] used to meet such needs; (d) Taxes of all kinds paid dining the taxable year with respect B““°°“°“°“‘ to the business or roperty relatin to the production; and Losses (e) Losses actual] sustained  the taxable ear in connection ` with the business ofy producing such products, inclirding losses from fire, flood, storm, or other casualties, and not compensated for by insurance or otherwise. Sec. 1202. That if any such person during any taxable year or b§,':f,°§ ,{2'l,§§'°{°§$,` part thereof, whether rmder an agreement, arr ement, or under- m¤*k°*P'*°°· standing or otherwise, sells or diisposes of any piidiguct of such mine, quarry, mill, cannery, workshop, factory, or manufacturing estabhshment at less than the fair market price obtainable therefor either (a) in such manner as directly or indirectly to benefit such person or any person direct] or indirectly interested in the business of such person; or (b) with intent to cause such benefit; the gross amount ,,mc§,?,*{‘},°'§§,'f°°!“’°°° received or accrued for such year or part thereof from the sale or disposition of such product shall be taken to be the amount which would have been received or accrued from the sale or disposition of such product if sold at the fair market price. No ummy U m_ Sec. 1203. (a) That no person subject to the provisions of this ployer nes eemm-ere title shall be liable for the tax herein imposed if the on] em loy-  mm °° ment or permission to work which but for this section would subject him to the tax has been of a child as to whom such person has in vood faith rocured at the time of employin such child or permitting him to worli, and has since in good faith relied upon and ke t on tile a certificate, issued in such form, under such conditions andp by such persons as may be prescribed by a board consisting of the Secretary, the Commissioner, and the Secretary of Labor, showing the child to be of such age as not to subject such person to the tax imposed by Punishment for this title. Any person who knowingly makes a false statement or  °° °° presents false evidence in or in relation to any such certificate or application therefor shall be punished by a fine of not less than $100, nor more than $1,000, or by im risonment for not more than three months, or by both such fine ang imprisonment, in the discretion of the court. smc VB mes In any State designated b such board an employment certificate reeuve. or other similar paper as to tlie age of the child, issued under the laws of that State, and not inconsistent with the provisions of this title, ihall have the same force and effect as a certificate herein provided or. (b) The tax imposed by this title shall not be imposed in the case of any person who proves to the satisfaction of the Secretary that the only employment or permission to work which but for this seo-