Page:United States Statutes at Large Volume 49 Part 1.djvu/1061

 10 16 74m CONGRESS. SESS. I. CH. 829 . AUG UST 30, 1935 . Vol.48,p. Deductions Deductions fro m (c) Section 23 of the Revenue Act of 1934 (relating to deduc- gross income . tions from gross income) is amended by adding at the end thereof a new subsection as follows Charitable and other "( r) CHARITABLE AND OTHER CONTRI BUTIONS BY COR PORATI ONS, contributions by cor- p orati ons . In the case of a corporation, contributions or gifts made within the . taxable year to or for the use of a_domestic corporation, or domestic tr ust, or d omes tic comm unity che st, fund, or foun dati on or gani zed and operated exclusively for religious, charitable, scientific, literary, or educational purposes or the prevention of cruelty to children (but in the case of contributions or gifts to a trust, chest, fund, or founda- tion, only if such contributions or gifts are to be used within the United States exclusively for such purposes), no part of the net earning s of which inure s to the benefit of any private sh areholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation ; to an amount which doe s not exce ed 5 per centum of the taxpayer's net income as computed without the benefit of this subsection. Such contributions or gifts shall be allowable as deduc- tions only if verified under rules and regulations prescribed by the Commissioner, with the approval of the Secretary ." Vol. 48,p .7ss . De duction s from (d) Section 204(c) of the Revenue Act of 1934 (relating to deduc- gross income by insur- tions from gross income by insurance companies other than life or an te com pan ies ot her than life or mutual . mutual) is amended by adding at the end thereof a new paragraph as follows "( 10) Charitable, and so forth, contributions, as provided in section 23(r) ." Vol.48, p. 737. Deductions allowed (e) Section 232 of the Revenue Act of 1934 (relating to deductions foreign corporations. allowed foreign corporations) is amended by inserting "(a) IN GENERAL.-" before the beginning of the section and by inserting at the end thereof the following new subsection "(b) C HARI TAB LE, AND so FORT H, CONTRIBUTIONS .-The so-called `charitable con tribution' deduct ion allowed by se ction 23(r) shall be allowed whether or not connected with income from sources within the United States. " Vol. 48, p. 724. Payment of corpora- (f) Section 144 of the Revenue Act of 1934 (relating to payment tion income tax at of corporat ion income tax at source) is amend ed by inserting a fter so urce . the words " a tax equal to 133/4 per centum " the following : " thereof with respect to all payments of income made before January 1, 1936, Amount. and equal t o 15 per centum t hereof with respe ct to all payment s of income made after December 31, 1935 ". Vol. 48 7 2 3 W i t h h, P . i t h h o l d i Section 143 (a) (1) of the Revenue Act of 1934 (relating to o f inter- est on tax-free cove- wit holding of interest on tax-free covenant bonds) is amended by nant bonds . st rikin g ou t cl ause (B) ther eof and i nser ting in lieu ther eof the followin g Forei gn co rpora tions . "( B) in the case of such a foreign corporation, 133/4 per centum with respect to all payments of interest made before January 1, 1936, and 15 per centum with respect to all payments of interest made after December 31, 1935, and ". D Vel.4s,p. eductions so. from (h) Section 23(p) of the Revenue Act of 1934 (relating to the gross income. deduc tion of d ividends r eceived b corporati ons) is am ended b Dividends received y y by corporations . Stri king out the wor ds " the amount" and inserting in lieu thereof the following : " 90 per centum of the amount " . Vol .48 ,p .7 24. Payment of corpora- (i) Section 144 of the Revenue Act of 1934 is amended by striking tion income tax at out the period at the end thereof and inserting a colon and the fol- sour ce . l owin g : " Prov ided further, That in th e case of the pay ment, after December 31, 193 5, of dividends o f the class with respect to which Vol. 48, p. 690. a deduction is allowed by section 23(p), the deduction and with- holding provided for in this section shall also apply to 10 per centum