Page:United States Statutes at Large Volume 48 Part 1.djvu/750

 724 INCOME TAX . RETU RNS AND PAYMENTS-Contd. Proviso. Interest of unknown owners. Return and payment required Ante, p . 698. Payment. Return by recipient of tax withheld. Tax paid by recipi- ent. Refunds and credits to withholding agent. Payment at source. By foreign corpora- tions not in business in United States. Rates. Pro, iso. Rate when intere_ t granted tax free. Penalties. For willful failure to pay tax, make returns, etc. Punishment for 73d C ONGRESS. SESS. II. CH. 277. MAY 10, 1934 . (a) of this section and except as otherwise provided in regulations prescribed by the Commissioner under section 21 .4) deduct and withhold from such annual or periodical gains, profits, and income a tax equal to 4 per centum thereof : Provided, That the Commis- sioner may authorize such tax to be deducted and withheld from the interest upon any securities the owners of which are not known to the w ithho lding age nt . (c) RETURN AND PAYMENT .-Every person required to deduct and with hold any t ax un der this secti on s hall make retu rn th ereof on or before March 15 of each year and shall on or before June 15, in lieu of the time prescribed in section 56, pay the tax to the official of the United States Government authorized to receive it . Every sueh person is hereby made liable for such tax and is hereby indem- nified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this section . (d) INCOME OF RECIPIENT.-Income upon which any tax is required to be withheld at the source under this section shall be included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the a mount of income tax as computed in such return. (e) TAX P AID BY RECIPIENT.-If any tax required under this sec- tion to be dedu cted and withh eld is pa id by the reci pient of t he income, it shall not be re-collected from the withholding agent ; nor in cases in which the tax is so paid shall any penalty be imposed upon or colle cted f rom th e reci pient of the income or th e with hold- ing age nt for failu re to return or pa y the s ame, u nless such f ailure was fraudulent and for the purpose of evading payment. (f) REFUNDS AND CR ED IT S .-Where there has been an overpay- ment of tax under this section any refun d or credit made under the provisions of section 322 shall be made to the withholding agent unless the amount of such tax was actually withheld by the with- holding agent. SEC. 144. PAY ME NT OF CORPORATION INCOME TAX AT SOURCE. In the case of foreign corporations subject to taxation under this title not engaged in trade or business within the United States and not having any office or place of business therein, there shall be deducted and withheld at the source in the same manner and upon the same items of income as is provided in section 143 a tax equal to 133/4 per centum, and such tax shall be returned and paid in the same manner and subject to the same conditions as provided in that section : Provided, That in the case of interest described in sub- section (a) of that section (relating to tax-free covenant bonds) the deduction and withholding shall be at the rate specified in such subsection. SEC. 145. PENALTIES. (a) Any person required under this ti tle to pay any tax, or required by law or regulations made under authority thereof to niake a re turn, kee p any reco rds, or s upply any info rmati on, f or the purposes of the computation, assessment, or collection of any tax imposed by this title, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times requi red by law o r regu lations, shal l, in additi on to other pena lties pro vided by l aw, be gu ilty of a misd emean or an d, upon co nvicti on the reof, be fin ed not more t han $1 0,000, or im pris- oned for not more than one year, or both, together with the costs of prosecution.