Page:United States Statutes at Large Volume 45 Part 1.djvu/903

 852 INCOME TAX Dividends in pr o- portion to stock owned. Ownership of stock defined. Meaning of" China." Vol .42,p . 856 . Cr edits aga inst tax. No al lowance for, of forei gn governmen ts. Ante, p. 829. Affiliation. Not app licable to co rpora tion s her eof. Ante, pp. 831, 832 . Income of sharehold- ers . Exclusion from gross income. Ante, p. 824. Assessment and col- lec tion of d efici encie s. De fin it ion of defi- ciency. Meaning of term . The amount the tax imposed exceeds return by taxp ayer. Amount of tax ex- ceeding previous assess- ment. Procedure In general. Notice of deficiency to taxpayer. Petition to Board of Tax Appeals for rede- ter minat ion. SEVENTIETH CONGRESS. SEss. I. Cu. 852.' 1928 . (3) That such distribution has been made to or for the benefit of such persons in proportion to the par value of the shares of stock of the corporation owned by each ; except that if the cor- poration has more than one class of stock, the certificates shall contain a statement that the articles of incorporation provide a method for the apportionment of such special dividend among such persons, and that the amount certified has been distributed in accordance with the method so provided. (o) Ownership of stock .-For the purposes of this section shares of stock of a corporation shall be considered to be owned by the person in whom the equitable right to the income from such shares is in good faith vested. (d) Definition of China,As used in this section the term "China" shall have the same meaning as when used in the China Trade Act, 1922. SEC. 262. CREDITS AGAINST THE TAX. A corporation organized under the China Trade Act, 1922, shall not be allowed the credits against the tax for taxes of foreign coun- tries and possessions of the United States allowed by section 131. SEC. 263. AFFILIATION. A corporation organized under the China Trade Act, 1922, shall no t be d eemed to be affili ated w ith an y other corpo ration withi n the meaning of section 141 or 142. SEC. 264 . INCOME OF SHAREHOLDERS. For exclusion of dividends from gross income, see section 116. Supplement 1,-Assessment and Collection of Deficiencies SEC. 271. DEFINITION OF DEFICIENCY. As used in this title in respect of a tax imposed by this .title " defi- ciency " means- (a) The amount by which the tax imposed by this title exceeds the amount shown as the tax by the taxpayer upon his return ; but the amount so shown on the return shall first be increased by the amounts previously assessed (or collected without assessment) as a deficiency, and decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax ; or (b) If no amount is shown as the tax by the taxpayer upon his return, or if no return is made by the taxpayer, then the amount by which the tax exceeds the amounts previously assessed (or collected without assessment) as a deficiency ; but such amounts previously as sessed, or c ollect ed wit hout a ssessm ent, sh all fi rst be decre ased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax. SEC. 272 . PROCEDURE IN GENERAL. (a) Petition to Board of Tax Appeals .-If in the case of any tax- pa yer, the Commi ssion er de term ines that ther e is a def icien cy i n respect of the tax imposed by this title, the Commissioner is author- ize d to s end no tice o f such defic iency to the taxpay er by regist ered mail. Within 60 days after such notice is mailed (not counting Sunday as the sixtieth day), the taxpayer may file a petition with the Board of Tax Appeals for a redetermination of the deficiency.

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