Page:United States Statutes at Large Volume 55 Part 1.djvu/54

 77TH CONG., 1 ST SESS.-CH. 10-MA .R. 7, 1941 repaid in respect of such tax. There shall then be ascertained the increase or decrease in each such tax previously determined for each such year which results solely from the treatment of the item con- sistently with the treatment accorded such item in the determination of the tax liability under this subchapter. To the increase or decrease so ascertained for each such tax for each such year there shall be added interest thereon computed as if the increase or decrease constituted a deficiency or an overpayment, as the case may be, for such prior taxable year. There shall be ascertained the difference between the aggregate of such increases, plus the interest attributable to each, and the aggregate of such decreases, plus the interest attributable to each, and the net increase or decrease so ascertained shall be the amount of the adjustment under this section with respect to the inconsistent treatment of such item." SEC. 12. ADMISSIBLE ASSETS OF DEALERS IN SECURITIES. (a) Section 720 (a) (1) (A) of the Internal Revenue Code is amended to read as follows: "(A) Stock in corporations except stock in a foreign personal-holding company, and except stock which is not a capital asset; and" (b) Section 711 (a) (2) (A) is amended by inserting after "com- panies" a period and the following: "This subparagraph shall not apply to dividends on stock which is not a capital asset". SEC. 13. ALLOWANCE OF EXCESS PROFITS CREDIT. Section 712 of the Internal Revenue Code is amended to read as follows: "SEC. 712. EXCESS PROFITS CREDIT-ALLOWANCE. "(a) DOMESTIC CORPORATIONs.-In the case of a domestic corpora- tion which was in existence before January 1, 1940, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other domestic corporations the excess profits credit for any taxable year shall be an amount computed under section 714. (For allow- ance of excess profits credit in case of certain reorganizations of corporations, see section 741.) "(b) FoREIaN CoRPORAnTONS.- In the case of a foreign corporation engaged in trade or business within the United States or having an office or place of business therein, the first taxable year of which under this subchapter begins on any date in 1940, which was in existence on the day forty-eight months prior to such date and which at any time during each of the taxable years in such forty-eight months was engaged in trade or business within the United States or had an office or place of business therein, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other foreign corporations the excess profits credit for any taxable year shall be an amount computed under section 714. "(c) EFFMrr or DISCLAIMS OF CREIrr. -If the taxpayer states in its return for the taxable year under this subchapter that it disclaims the use of the credit computed under section 713 or the use of the 54 Stat. 985. 26U.S.C.§720(a) (1) (A). 54 Stat. 976. 26U.S.C.§711(a) (2) (A). 54 Stat. 979. 26U.S.C.i712. 54 Stat. 980, 981. 26 T.S.C.§§713, 714. Ante, p. 19. Post, p. 30. 29 55 STAT.]

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