Page:United States Statutes at Large Volume 49 Part 1.djvu/1063

 1018 74 TH CONGRESS. SESS. I. CH. 829. AUGUST 30, 1935. with th e approval of the Secretary, but no such extension shall be for mor e than sixty days. Publi city of retu rns. (e) Returns required to be filed for the purpose of the tax imposed vol. 44, p.sl. by this section shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under Title II of the Revenue Act of 1926. Determination of ad- (f) For the first year ending June 30 in respect of which a tax is fasted declared value first ye ar ending June mhosed by this section upon any corporation, th e adjusted declared 39 Post, p. 1733 . value shall be the value, as declared by the corporation in its first return under this section (which declaration of value cannot be amended), as of the close of its last income-tax taxable year ending at or prior to the close of the year for which the tax is imposed by this section (or as of the date of organization in the case of a corporation having no income-tax taxable year ending at or prior to the close of subsequent gears ; the yea r for whic h the tax is imposed by this s ection). For any subse- domestic corporations. quent y ear ending June 30, the adjusted declared value in the case of a domestic corporation shall be the original declared value plus (1) the cash and fair market value of property paid in for stock or s hares, (2) paid in s urplu s and cont ribut ions to ca pital , (3) its net income, (4) the excess of its income wholly exempt from the taxes Vol .48,pp.683,691. imposed by Title I of the Revenue Act of 1934, as amended, over the amount disallowed as a deduction by section 24(a) (5) of such title, and (5) the amount of the dividend deduction allowable for income tax purposes, and minus (A) the value of property distributed in liquidation to shareholders, (B) distributions of earnings or profits, and (C) the excess of the deductions allowable for income tax pur- p ose s ov er its gros s i ncom e ; adjustment being made for each income- tax taxable year included in the period from the date as of which the original declared value was declared to the close of its last income- tax taxable year ending at or prior to the close of the year for which the tax is imposed by this section. The amount of such ad- justment for each such year shall be computed (on the basis of a separate return) according to the income tax law applicable to such Foreign corporations. year. For any subsequent year ending June 30, the adjusted de- cl ared value in the ca se of a fo reign corp oration sh all be the original declared value adjusted (for the same income-tax taxable years as in the case of a domestic corporation), in accordance with regulations prescri bed by the Commissioner with the approval of the Secretary, to reflect i ncreases o r decrease s in the c apital emp loyed in t he trans- action of its business in the United States. Credit snowed in (g) For the purpose of the tax imposed by this section there shall case of China Trade Act corporation. be allowed in the case of a corporation organized under the China CVP.5M .p 849 S. Trade Act, 1922, as a credit against the adjusted declared value of its capital stock, an amount equal to the proportion of such adjusted declared value which the par value of the shares of stock of the corpora tion, owned on the last day of the taxable year by (1) per- sons resident in China, the United States, or possessions of the United States, and (2) individual citizens of the United States or China wherever resident, bears to the par value of the whole number "China" construed. of shares of stock of the corporation outstanding on such date. For the purposes of this subsection 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 ; and as used in this subsection the term "China" shall have the same meaning as when used in the China Trade Act, 1922. Vol.48, p. 769. (h) The capital stock tax imposed by section 701 of the Revenue Act of 1934 shall not apply to any taxpayer with respect to any year after the year ending June 30, 1935.
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