Page:United States Statutes at Large Volume 53 Part 1.djvu/104

 CODIFICATION OF INTERNAL REVENUE LAWS (2) LIMIT ON AMOUNT OF CREDIT OR REFUND. -T he amount of the credit or refund shall not exceed the portion of the tax paid during the three years immediately preceding the filing of the claim, or, if no claim was filed, then during the three years imme- diately preceding the allowance of the credit or refund. (c) EFCT OF PETITION TO BOARD.- If the Commissioner has mailed to the taxpayer a notice of deficiency under section 272 (a) and if the taxpayer files a petition with the Board of Tax Appeals within the time prescribed in such subsection, no credit or refund in respect of the tax for the taxable year in respect of which the Com- missioner has determined the deficiency shall be allowed or made and no suit by the taxpayer for the recovery of any part of such tax shall be instituted in any court except- (1) As to overpayments determined by a decision of the Board which has become final; and (2) As to any amount collected in excess of an amount com- puted in accordance with the decision of the Board which has become final; and (3) As to any amount collected after the period of limitation upon the beginning of distraint or a proceeding in court for col- lection has expired; but in any such claim for credit or refund or in any such suit for refund the decision of the Board which has become final, as to whether such period has expired before the notice of deficiency was mailed, shall be conclusive. (d) OVERPAYMENT FOUND BY BOARD.- If the Board finds that there is no deficiency and further finds that the taxpayer has made an overpayment of tax in respect of the taxable year in respect of which the Commissioner determined the deficiency, the Board shall have jurisdiction to determine the amount of such overpayment, and such amount shall, when the decision of the Board has become final, be credited or refunded to the taxpayer. No such credit or refund shall be made of any portion of the tax unless the Board determines as part of its decision that such portion was paid (1) within three years before the filing of the claim or the filing of the petition, whichever is earlier, or (2) after the mailing of the notice of deficiency. (e) TAX WITHHELD AT SOURCE.- For refund or credit in case of excessive withholding at the source, see section 143 (f). Supplement P-Foreign Personal Holding Companies SEC. 331. DEFINITION OF FOREIGN PERSONAL HOLDING COMPANY. (a) GENERAL RULE. - For the purposes of this chapter the term "foreign personal holding company" means any foreign corpora- tion i-- (1) GRoss INCOME REQUIREMENT.- At least 60 per centum of its gross income (as defined in section 334 (a)) for the taxable year is foreign personal holding company income as defined in section 332; but if the corporation is a foreign personal holding company with respect to any taxable year ending after August 26, 1937, then, for each subsequent taxable year, the minimum percentage shall be 50 per centum in lieu of 60 per centum, until a taxable year during the whole of which the stock ownership required by paragraph (2) does not exist, or until the expiration of three con- secutive taxable years in each of which less than 50 per centum of the gross income is foreign personal holding company income. For the purposes of this paragraph there shall be included in the gross income the amount includible therein as a dividend by reason of the application of section 334 (c) (2); and (2) STOCK OwNERSIP REQUIREmENT. -At any time during the taxable year more than 50 per centum in value of its outstanding 92

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