Page:United States Statutes at Large Volume 53 Part 1.djvu/109

 detail the gross income, deductions and credits, net income, Supple- ment P net income, and undistributed Supplement P net income of such company. (e) EFFECT ON CAPITAL ACCOUNT OF FOREIGN PERSONAL HOLDING COMPANY.- An amount which bears the same ratio to the undis- tributed Supplement P net income of the foreign personal holding company for its taxable year as the portion of such taxable year up to and including the last day on which a United States group existed with respect to the company bears to the entire taxable year, shall, for the purpose of determining the effect of distributions in subse- quent taxable years by the corporation, be considered as paid-in sur- plus or as a contribution to capital and the accumulated earnings and profits as of the close of the taxable year shall be correspondingly reduced, if such amount or any portion thereof is required to be included as a dividend, directly or indirectly, in the gross income of United States shareholders. (f) BASIS OF STOCK IN HANDS OF SHAREHOLDERS. - The amount required to be included in the gross income of a United States shareholder under subsection (b) shall, for the purpose of adjusting the basis of his stock with respect to which the distribution would have been made (if it had been made), be treated as having been reinvested by the shareholder as a contribution to the capital of the corporation; but only to the extent to which such amount is included in his gross income in his return, increased or decreased by any adjustment of such amount in the last determination of the share- holder's tax liability, made before the expiration of seven years after the date prescribed by law for filing the return. (g) BASIS OF STOCK IN CASE OF DEATH. - For basis of stock or securities in a foreign personal holding com- pany acquired from a decedent, see section 113 (a) (5). (h) LIQUIDATION.- For amount of gain taken into account on liquidation of foreign personal holding company, see section 115 (c). (i) PERIOD OF LIMITATION ON ASSESSMENT AND COLLECTION.- For period of limitation on assessment and collection without assess- ment, in case of failure to include in gross income the amount properly includible therein under subsection (b), see section 275 (d). SEC. 338. INFORMATION RETURNS BY OFFICERS AND DIRECTORS. (a) MONTILY RETURNs. -On the fifteenth day of each month each individual who on such day is an officer or a director of a foreign corporation which, with respect to its taxable year preceding the tax- able year (whether beginning on, before, or after January 1, 1939) in which such month occurs, was a foreign personal holding company, shall file with the Commissioner a return setting forth with respect to the preceding calendar month the name and address of each share- holder, the class and number of shares held by each, together with any changes in stockholdings during such period, the name and ad- dress of any holder of securities convertible into stock of such cor- poration, and such other information with respect to the stock and se- curities of the corporation as the Commissioner with the approval of the Secretary shall by regulations prescribe as necessary for carrying out the provisions of this title. The Commissioner, with the ap- proval of the Secretary, may by regulations prescribe, as the period with respect to which returns shall be filed, a longer period than a month. In such case the return shall be due on the fifteenth day of the succeeding period, and shall be filed by the individuals who on such day are officers and directors of the corporation. (b) ANNUAL RETURNSs. -On the sixtieth day after the close of the taxable year of a foreign personal holding company each individual who on such sixtieth day is an officer or director of the corporation shall file with the Commissioner a return setting forth- INCOME TAX 97

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