Page:United States Statutes at Large Volume 47 Part 1.djvu/235

 72d CONGRESS. SESS. I. CH. 209 . JUNE 6,1932 . 211 INCOME TAX Credits against tar. Supplement C-Credits Against Tax [Supplementary to Subtitle B, Part III] SEC. 131. TAXES OF FO REI GN COUNTRIES AND POSSESSIONS OF Taxes otforeign coun- UNITED STATES. pl ions sited States (a) ALLOWANCE of CREDIT.--If the taxpayer signifies in his return Allowa nces. his desire to have the benefits of this section, the tax imposed by this title shall be credited with : Payments or citizens (1) CITIZ EN AND DOMESTic coAPoRATiox .In the case of a citi- and domestic corpora. zen of the United States and of a domestic corporation, the amount bone. of any income, war-profits, and excess-profits taxes paid or accrued during the taxable yea r to any foreign country or to a ny possession of the United States ; and Resident, to United (2) RES ID ENT OF UNWED STATES.In the case of a resident of states possessions. the United States, the amount of any such taxes paid or accrued during the taxable year to any possession of the United States ; d (3) ALIEN RESIDENT or UNITED STATES .-In the case of an alien ei a countries denat to fo r- i wing r- resident of the United States, the amount of any such taxes paid a'- " credit . or accrued during the taxable year to any foreign country, if the foreign country of which such alien resident is a citizen or subject, in imposing such taxes, allows a similar credit to citizens of the United States residing in such count . y~' ; and Partnerships and es- (4) PARTNERSHIPS AND ESTATES .-Il the case of any such indi- tates, to a foreign coon . vidual who is a member of a partnership or a beneficiary of an try • es tate or t rust, his propo rtio nate share of such taxes of t he p artne r- ship o r the estate or trust paid or ac crued during the taxable year to a foreign country or to any possession of the United States, as the case may be . (b) LIMIT ON CREDrr.-The amount of the credit taken under this Limit on credi t. section shall be subject to each of the followin g limitations : (1) The amount of the credit in respect of the tax paid or for aiat~oiorreiign accrued to any country shall not exceed the same proportion of country. the tax against which such credit is taken, which the taxpayer's net income from sources within such country bears to his entire net income for the same taxable year ; and (2) The tota l amo unt of the credit shall not exceed the same Limitation on total amount. pr oportion of the tax agai nst whic h such c redit is taken, which the taxpayer's net income from sources without the United States bea rs to his entire net income for the same taxable year. (c) ADJUSTMENTS ON PAYMENT OF ACC RU ED TAxES.-If accrued raid dit~lro~mcredits taxes when paid differ from the amounts claimed as credits by the claimed. taxpayer, or if any tax paid is refunded in whole or in part, the taxpayer shall notify the Commissioner, who shall redetermine the Redetermination . amount of the tax for the year or years affected, and the amount of tax due upon such redetermination, if any, shall be paid by the taxpayer upon notice and demand by the collector, or the amount Po 4, P. %2• of tax overpaid, if any, shall be credited or refunded to the taxpayer in accordance with the provisions of section 322. In the case of Tax accrued but not such a tax accrued but not paid, the Commissioner as a condition paid. precedent to the allowance of this credit may require the taxpayer to give a bond with sureties satisfactory to and to be approved by Bond required. the Commi ssione r in such sum as the Commi ssione r -ma y req uire, conditioned upo n the payment by the taxpayer of any amount of tax found due upon any such redetermination ; and the bond herein prescribed shall contain such further conditions as the Commissioner may require.