Page:United States Statutes at Large Volume 45 Part 1.djvu/327

 276 Taxes. Payment of, by Cus- todian. Vol. 42, p. 1518, amended. New matter. Compu tation and payment of income, et c., taxes, on p rop- erty he ld by Cus - todian. Return of money, etc., subject to tax lia- bility. Tax of 30 per cent on gain from sales of prop- erty, etc . Determination of, as capital net gains. Vol. 44, p. 19 . Sal es by Cus todi an considered as involun- tary conversions. Laws applicable. Date determined. No penalty assessed on tax while property held by Custodian. SEVENTIETH CONGRESS. SESS. I. CH. 167. 1928. erty held in trust for such person by the Alien Property Custodian or by the Treasurer of the United States for the account of the Alien Property Custodian, under such rules and regulations as the Presi- dent may prescribe ." TAXES SEC . 18 . Section 24 of the Trading with the Enemy Act, as amended, is amended by inserting "(a)" after the section number and by adding at the end of such s ection ne w subsect ions to r ead as fo llows "(b) In the case of income, war-profits, excess-profits, or estate taxes imposed by any Act of Congress, the amount thereof shall, under regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury, be computed in the same manner (except as hereinafter in this section provided) as though the money or other property had not been seized by or paid to the Alien Property Custodian, and shall be paid, as far as practicable, in accordance with subsection (a) of this section. Pending final determination of the tax liability the Alien Property Custodian is authorized to return, in accordance with the provisions of this Act, money or other property in any trust in such amounts as may be determined, under regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury, to be consistent with the prompt payment of the full amount of the internal-revenue taxes. "(c) So much of the net income of a taxpayer for the taxable year 1917, or any succeeding taxable year, as represents the gain derived from the sale or exchange by the Alien Property Custodian of any property conveyed, transferred, assigned, delivered, or paid to him, or seized by him, may at the option of the taxpayer be segre- gated from the net income and separately taxed at the rate of 30 per centum . This subsection shall be applied and the amount of net income to be so segregated shall be determined, under regulations prescribed by the Commissioner of Internal Revenue with the ap- proval of the Secretary of the Treasury, as nearly as may be in the same manner as provided in section 208 of the Revenue Act of 1926 (relating to capital net gains), but without regard to the period for which the property was held by the Alien Property Custodian before its sale or exchange, and whether or not the taxpayer is an indi vidual. "(d) Any property sold or exchanged by the Alien Property Cus- todian (whether before or after the date of the enactment of the Settlement of War Claims Act of 1928) shall be considered as hav- ing been compulsorily or involuntarily converted, within the mean- ing of the incom e, exc ess-pr ofits, and wa r-prof its ta x laws and r eu- lations ; and the provisions of such laws and regulations relating' to such a conversion shall (under regulations prescribed by the Com- mis sione r of Inte rnal Reve nue w ith t he a pprov al of the Secr etary of the Treasury) apply in the case of the proceeds of such sale or exchange . For the purpose of determining whether the proceeds of such conversion have been expended within such time as will entitle the taxpayer to the benefits of such laws and regulations relating to such a conversion, the date of the return of the proceeds to the person entitled thereto shall be considered as the date of the con- version. "( e) In case of any internal-revenue tax imposed in respect of property conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, or seized by him, and imposed in respect of any period (in the taxable year 1 .917 or any succeeding taxable year) during which such property was held by him or by the Treas- urer of the United States, no interest or civil penalty shall be assessed

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