Page:United States Statutes at Large Volume 49 Part 1.djvu/1779

 1734 Effective date. Title III-Tax On Unj ust Enrichment. Tax on net income from ce rtain sour ces. Income from sale of articles on which ex- cise tax shifted to othe rs. Incom e fro m rei m- bursement from ven- dors of exc ise tax burdens included in prices pa id such ven- dors . Income fr om refunds, etc ., f rom Unit ed States of excise taxes erroneously, etc ., col- lected. Computation ; exclu- sio ns. Articles in taxpayer's stocks not sold before termination of Fed er al excise tax. Tax a djust ment ma de with vendee. Taxpayer entitled to refund un der existing law. Net income from sales. Computation. 74TH C ONGRESS. SESS. II. CH. 690. JU NE 22, 1936 . a gainst net incom e equa l to the c redit for d ivide nds r eceive d pro vided in section 26 (b) of the Revenue Act of 1936" . (b) The amendment made by subsection (a) shall not apply to an income-tax taxable year beginning before January 1, 1936 . T ITLE 111-TAX ON UNJUST ENRICH MENT SEC . 501. TAX ON NET INCOME FROM CERTAIN SOURCES . (a) The following taxes shall be levied, collected, and paid for each taxable year (in addition to any other tax on net income), upon the net income of every person which arises from the sources specified belo w (1) A tax equal to 80 per centum of that portion of the net income from the sale o f articles with r espect to which a Federal exc ise tax wa s imposed on such p erson but not paid which is attributable to shifting to others to any extent the burden of such Federal excise tax and which does not exceed such person's net income for the entire taxable year from the sale of articles with respect to which such Federal excise tax was imposed. (2) A tax equal to 80 per centum of the net income from reim- bursement received by such person from his vendors of amounts representing Federal excise-tax burdens included in prices paid by such person to such vendors, to the extent that such net income does not exceed the amount of such Federal excise-tax burden which such person in turn shifted to his vendees. (3) A tax equal to 80 per centum of the net income from refunds or credits to such person from the United States of Federal excise taxes erroneously or illegally collected with respect to any articles, to the extent that suc h net income does not exceed the a mount of the burden of such Fe deral excise taxes with respect to such articles which such person shifted to others. (b) The net incom e (s peci fied in s ubse ctio n (a) ( 1)) from the sale of articles with respect to which the Federal excise tax was not paid, and the net income specified in subsection (a) (2) or (3), shall not include the net income from the sale of any article, from reim- bursement with r espect to any art icle, or from ref und or credit of Federal excise t ax with respect t o any article (1) if such article (or the articles processed therefrom) were not sold by the taxpayer on or before the date of the termination of the Federal excise tax ; (2) if the taxpayer made a tax adjustment with respect to such article (or the articles processed therefrom) with his vendee if under the terms of any statute the taxpayer would have been entitled to a refund from the United States of the Federal excise tax with respect to the article otherwise than as an erroneous or illegal collection (assuming, in case the tax was not paid, that it had been paid). (c) The net income from the sales specified in subsection (a) (1) shall be computed as follows (1) From the gr oss inco me from such sales th ere shall be deducted the allocable portion of the deductions from gross income for the taxable year which are allowable under the applicable Revenue Act;or (2) If the taxpayer so elects by filing his return on such basis, the total net income for the taxable year from the sale of all articles with respect to which each Federal excise tax was imposed (computed by deducting from the gross income from such sales the allocable portion of the deductions from gross income which are allowable under the applicab le Revenue Act, but without
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