Page:United States Statutes at Large Volume 45 Part 1.djvu/897

 846 SEVENTIETH CONGRESS. SEss. I. Cg. 852. 1928 . (e) Double deductions .-Nothing in this section shall be con- strued to permit the same item to be twice deducted. Net losse s. SEC. 205. NET LOS SES. Allowance of special deduction for. The benef it of the s pecia l dedu ction for net lo sses allow ed b Avate, pp. 825,842, 844, y section 117 shall be allowed to insurance companies subject to the tax imposed by section 201 or 204, under regulations prescribed by the Commission er with the approval of the Secretary. INC OME TAX No duplication. Foreign taxes, etc . Credit for, allowed domestic insurance comp anie s. Ante, pp. 842, 844 . SEC. 206. TAX ES OF FOR EIGN COUN TRIE S AND POS SESS IONS OF UNITED STATES. The amou nt of in come , wa r-pr ofit s, and e xces s-pr ofit s ta xes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax of a domestic insurance com- pany subject to the tax imposed by section 201 or 204, to the' extent provided in the case ofa domestic corporation in section 131, and in such cases " net income " as used in that section means the net income as defined in this Supplement. SEC. 207. COMPUTATION OF GROSS INCOME. The gros s income of insu rance com panies s ubject t o the ta x impose d by sec tion 201 or 204 shall no t be det ermined in the m anner pr ovided Ante, p. 826. in section 119. Gross income . Determination of, re- stricted. Mutual insurance compa nies other than life. Taxable, as cor por ati ons. o her Gross income in- cludes premi ums less r einsu ranc e. Add iti on al de- ductions. Addition to reserve funds. Policy and annuity contracts. M utual mar ine com- pan ies. R epaym ents to pol- icyholders, etc. Co mpanies o ther than life or marine. Pre mium deposit s re- tur ned, ete. SEC. 208. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE. (a) Application of title. 'Mutual insurance companies, other than life insurance companiees, shall be taxable in the same manner as other corporations, except as hereinafter provided in this section. (b) Gross income .-Mutual marine insurance companies shall include in gross income the gross premiums collected and received by them less amounts paid for reinsurance. (c) Deductions .-In addi tion to the deductions allo wed to cor- porations by section 23 the following deductions to insurance com- panies shall al so be al lowed, u nless ot herwise allowed- (1) MUT UAL INSU RANCE COMP ANIES OTHE R THAN LIFE INSUR- ANcE.-In the case of mutual insurance companies other than life insu rance compa nies- (A) the net a dditi on req uired by law to be made within the taxable year to reserve funds (including in the case of assessment insurance companies the actual deposit of sums with State or Territorial officers pursuant to law as addi- tions to guarantee or reserve funds) ; and (B) the sums other than dividends paid .within the taxable year on policy and annuity contracts. (2) MUTUAL MARINE INSURANCE COMPANIES .-In the case of mutual marine insurance companies, in addition to the deduc- tions allowed in parag raph (1) of this subsect ion, unl ess othe r- wise allowed, amounts repaid to policyholders on account of premiums previously paid by them, and interest paid upon such amounts between the ascertainment and the pay ment thereof ; (3) MU TUAL I NSURAN CE COM PANIES OTH ER THAN LI FE AND MARINE.-In the case of mutual insurance companies (including interinsurers and reciprocal underwriters, but not including mutual life or mutual marine insurance companies) requiring the ir me mb ers to make premium dep os its to provide for losses and expenses, the amount of premium deposits returned to their policyholders and the amount of premium deposits retained for the payment of losses, expenses, and reinsurance reserves.

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