Page:United States Statutes at Large Volume 49 Part 1.djvu/1782

 74TH C ONGRESS. SESS. IL CH. 690. JUN E 22, 1936 . 1737 price included the amount of the tax, or contracted to refund any part of the sale price in the event of recovery of the tax or decision of its invalidity ; but the taxpayer may establish that such acts were caused by factors other than the tax, or that they do not represent his practice during the period in which the articles in question were sold. (j) As used in this section- (1) T he term "F ederal ex cise tax" means a ta x or exac tion with respect to the sale, lease, manufacture, production, process- ing, ginning, importation, transportation, refining, recovery, or holding for sale or other disposition, of commodities or articles, provided for by any Federal statute, whether valid or invalid, if denominated a "tax" by such statute. A Federal excise tax shall be deemed to have been imposed with respect to an article if it was imposed with respect to (or with respect to the process- ing of) any commodity or other article, from which such article was processed. (2) The term "date of the termination of the Federal excise tax" means, in the case of a Federal excise tax held invalid by a decision of t he Supreme Court, the date of such decision. (3) The term "refund or credit" does not include a refund or credit made in accordance with the provisions and limitations set forth in Title VII of this Act, or in section 621 (d) of the Revenue Act of 1932. (4) The term "tax adjustmen t" means a repaymen t or cred it by the taxpayer to his vendee of an amount equal to the Federal excise tax with respect to an article (less reasonable expense to the vendo r in conne ction wit h the nonp ayment or recovery by him of the amount of such tax and in connection with the making of such repayme nt or credit) if such repayment or credit is made on or before June 1, 1936, or thereafter in the bona fide settlement of a written agreement entered into on or before March 3, 1936. (5) The term "taxpayer" means a person subject to a tax imposed by this section. (k) All references in this section to the purchase or sale (or to parties to the sale) of articles with respect to which a Federal excise tax was imposed shall be deemed to include the purchase or sale (or parties to the sale) of services with respect to which a Federal e xcise tax was imp osed, and for the purposes of subs ection (a) the extent to which the taxpayer shifted to others the burden of such Federal excise tax with respect to such services shall be pre- sumed to be an amount computed as follows : From the selling price of the servic es there shall be deducted the ave rage price receiv ed by the taxpayer for performing similar services during the six tax- able yea rs p reced ing the init ial i mpos itio n of the Fede ral excis e tax in question. The balance (to the extent that it does not exceed the amount of such Federal excise tax with respect to such services minus any pay ments or credits with respect to t he services made to purch asers as s pecif ied in subs ectio n (f) (3) ) shall be the extent to which the taxpayer shifted the burden of such Federal excise tax to others. If during any part of such six-year period the taxpayer was not in bu siness, or if his records for any part of such peri od are so inadequate as not to furnis h satisfactory da ta, the average price of the taxpayer for such part of such period shall, when nec- essary for a fair comparison, be deemed to be the average price, as determi ned by the Commissi oner, of r epresentat ive conce rns engaged in a similar business and similarly circumstanced. The presumption established by this subsection may be rebutted by proof of the character described in subsection (i). Defi nitio ns. " Federal e xcise tax . " "Date of the termi- nation of the Federal excise tax ." " Refund or credit ." Post, p. 1747 . Vol .47,p. 268 . "Tax adjustment ." "Taxpayer ." "Purchase or sa le of taxed articles" to in- clude services, etc. Extent to which tax- payer shifted tax bu r- den to others compu- tation. Rebuttal of pre su mp- tion .