Page:United States Statutes at Large Volume 47 Part 1.djvu/251

 72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932 . 227 ti tle, and the amount of inter est allow ed as a c redit und er sectio n Ante p . 185 "x 26; (9) A reasonable allowance for the exhaustion, wear and tear prE''lxhaustion, etc ., of of property, as provi ded in se ction 23 (k) . (d) DEDUCTIONS OF FO RE IGN CORPORATIONS .-In the case of a for- Deductions allowed for eign corpo ratio ns fo r eign corporation the deductions allowed in this section shall be United states business . allowed to the extent provided in Supplement I . Post, p.229. (e) DOUBLE DEDUCTIONs .-Nothing in this section shall be Con- hibited .~h°°s pro - (e) to permit the same item to be twice deducted . SEC. 205. NET L OSSES . Net losses. The benefit of the s esial deduction for net losses allowed b Allowance of special li y deductions for . section 117 sh all be allowed to insurance com panies subject t o the Ante, pp .207,223,225 . tax imposed by section 201 or 204, under regu lations prescrib ed by the Commission er with the app roval of the Sec retary. SEC. 206. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF Fore ign ta xes. UNI TED STATES. The amount of income war-profits, and excess-profits taxes im- Credit for, allowed posed by foreign countries or pssessins of the United States shall companies . insuranc e be allowed as a credit against the tax of a domestic insurance cone- Ante, pp. 223, 225, pany subject to the tax imposed by section 201 or 204, to the extent provided in th e case of a dom estic corporatio n in section 131, and Ante, p. 211. in such cases " net income " as used in that section means the net income as d efined in this S upplement. SEC. 207. COMPUTATI ON OF GR OSS INCOM E. Gros s income. The gross income of insurance companies subject to the tax imposed Computation. 225 by section 201 or 204 shall not be determined in the manner provided in section 119. SEC. 208. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE. Mutual insurance companies other than (a) APPLICATION OF TITLE .-Mutual insurance companies, other life- Taxable other than life insurance companies, shall be taxable in the same manner corporations, as oth er corpora tions, ex cept as h ereinafte r provide d in this section. (b) G ROSS INCOME.-Mutual marine-insurance companies shall (boss inc ome, in- eludes premiums less include in gross income the gross premiums collected and received reinsurance. b y them less amoun ts paid for rein surance . (c) DEDIICTIONs.-In addition to the deductions allowed to corpo- do Additional deduc- rations by section 23 the following deductions to insurance coo- Ante, p . 179. panies shall als o be allo wed, unle ss otherw ise allow ed- (1) MUTUAL INSURANCE COMPANIES OTHER THAN LIFE Mutual insurance INSUR- companies . A NC E . In the case of mutual insura nce companies ot her than life insurance companies- (A) the net addition required by law to be made within the 1 Addition to reserve taxable year to reserve funds (including in the case of assess- ment insurance compa nies the actual deposit of sums with State o r Territo rial offi cers purs uant to l aw as add itions to guarante e or reserve funds) ; and (B) the sums other than dividends paid within the taxable co Policy n tracts, and a nnuity year on policy and annuity contracts . Mutual marine in- (2) M UTUAL MARINE INSUR ANCE CO MPANIE S .-In the case _of surance companies . mutual marine insurance compan ies, in additio n to the deducti ons Repayments to pou- allowed in paragraph (1) of thi s subsection, unless otherwise cyholdera. allowed, amounts repaid to policyholders on account of pr e- miums previously paid by them, and interest paid upon such amounts between the ascertainment and the payment thereof ; Companies other (3) MUTUAL INSURANCE COMPANIES OTHER TH AN LI FE AND than l, to and marine . MARINE .-In the case of mutual insurance companies (including tnP Prre iumdeposttsro- interinsurers and reciprocal underwriters, but not inc ludi ng mutual life or mutual marine insurance companies) requiring