Page:United States Statutes at Large Volume 49 Part 1.djvu/1778

 74 TH CONGRESS. SESS. II. CH. 690. JUNE 22, 1936. 1733 (B) Contributions or gifts, not otherwise allowed as a deduc- tion, to or for the use of donees described in section 23 (o) for the purposes therein specified, including, in the case of a corpo- ration organized prior to January 1, 1936, to take over the assets and liabilities of the estate of a decedent, amounts paid in liqui- dation of any liability of the corporation based on the liability of the decedent to make any such contribution or gift, to the extent such liability of the decedent existed prior to January 1, 1934 ; and (C) Losses from sales or exchanges of capital assets which are Ante, p. 1692. disallowed as a deduction by section 117 (d). (4) The terms used in this section shall have the same meaning Meaning of terms. as when used in Title I. (c) ADMINISTRATIVE PROVISIONS .-All provisions of law (including Administrative pro- penalties) applicable in respect of the taxes imposed by Title I of "'A 'n' te,' p. 1652. this Act, shall insofar as not inconsistent with this section, be applicable in respect of the tax imposed by this section, except that Ante, p. 1696. the provisions of section 131 of that title shall not be applicable . (d) PAYMENT OF SURTAX ON PRO RATA SHARES .-The tax imposed on p Payment ofs ro rata shares uetax by this section shall not apply if (1) all the shareholders of the corporation include (at the time of filing their returns) in their gross inco me th eir en tire pro ra ta sh ares, wheth er dis tribu ted or not, of the adjusted net income of the corporation for such year, and (2) 90 per centum or more of such adjusted net income is so included in the gross incom e of shareholders other than corporations . Any amount so included in the gross income of a shareholder shall be treated as a dividend received. Any subsequent distribution made by the corporation out of earnings or profits for such taxable year shall, if distributed to any shareholder who has so included in his gross inco me hi s pro rata share, be e xempt from tax in the amount of the share so included. (e) IMPROPER ACCUMULATION OF SURPLUS .-For surtax on corpo- Improper accumula- tion of surplus. ratio ns wh ich a ccumul ate s urplus to a void s urtax on st ockho lders, Ante, 1) .1676. see section 102 . TIT LE I I--C APIT AL S TOCK AND EXC ESS- PROFITS TAX SEC. 401 . CAPITAL STOCK TAX . Capital stock tax. (a) Section 105 of the Revenue Act of 1935 is amended by striking Imposition of excise out "$1 .40" wherever appearing therein and inserting in lieu thereof taAnt, 1).1017. "$1". (b) S ubsec tion (c) of such secti on is amend ed by strik ing o ut Exe mptio ns. e . "1934" and inserting in lieu thereof "1936", and by striking out ", as amended" wherever appear ing in such subsection. (c) Subsection (f) (4) o f such section is amend ed to read as Determina tion of ad- follows : " (4) the excess of its income wholly exem p t from the taxes jested declared value . Ante"' .1018. imposed by the applicable income-tax law over the amount disallowed as a deduction by section 24 (a) (5) of the Revenue Act of 1934 or a corresponding provision of a later Revenue Act, and" . SE C. 402 . EXC ESS-PR OFITS TAX . (a) Section 106 (b) of the Revenue Act of 1935 is amended by striking out "except that there shall be deducted the amount of income tax imposed for such year by section 13 of the Revenue Act of 1934, as am ended" and insert ing i n lieu ther eof "c omput ed wi thout the deduction of the tax imposed by this section, but with a credit Title II-Capital Stock And Excess- Profits Tax. Excess-profits tax. Determination of ad- justed declared value. Ante, p. 1019.