Page:United States Statutes at Large Volume 55 Part 1.djvu/718

 55 STAT.] 77TH CONG., IST SESS.-CH. 412-SEPT. 20, 1941 (c) FOREIGN CORPORATIONs. - Section 14 (c) of the Internal Revenue Code (relating to tax on resident foreign corporations) is amended by striking out "22 6 per centum" and inserting "24 per centum". (d) SURTAX ON CORPORATIONS IMPROPERLY ACCUMULATING SUR- PLIs.- T he rate schedule of section 102 of the Internal Revenue Code is amended to read as follows: "271/2 per centum of the amount of the undistributed section 102 net income not in excess of $100,000, plus "381/2 per centum of the undistributed section 102 net income in excess of $100,000." (e) MUTUAL INVESTMENT COMPANIES.- Section 362 (b) of the Internal Revenue Code (relating to tax on mutual investment com- panies) is amended by striking out "223 per centum" and inserting "24 per centum". SEC. 104. SURTAX ON CORPORATIONS AND TERMINATION OF DEFENSE TAX. (a) GENERAL RULE.- Section 15 of the Internal Revenue Code (relating to defense tax) is amended to read as follows: "SEC. 15. SURTAX ON CORPORATIONS. "(a) CORPORATION SURTAX NET INCOME. - For the purposes of this chapter the term 'corporation surtax net income' means the net income minus the credit for dividends received provided in section 26 (b), computed by limiting such credit to 85 per centum of the net income in lieu of 85 per centum of the adjusted net income. "(b) IMPOSITION OF TAx.-T here shall be levied, collected, and paid for each taxable year upon the corporation surtax net income of every corporation (except a corporation subject to the tax imposed by section 231 (a) or Supplement Q) a surtax as follows: "Upon corporation surtax net incomes not in excess of $25,000, 6 per centum of the amount thereof; "Upon corporation surtax net incomes in excess of $25,000, $1,500, plus 7 per centum of the excess over $25,000." (b) SURTAX ON MUTUAL INVESTMENT COMPANIES. - Supplement Q of the Internal Revenue Code (relating to mutual investment com- panies) is amended by inserting at the end thereof a new section to read as follows: "SEC. 363. SURTAX ON MUTUAL INVESTMENT COMPANIES. "(a) SUPPLEMENT Q SURTAX NET INCOME. -For the purposes of this chapter the term 'Supplement Q surtax net income' means the net income, computed without the net operating loss deduction provided in section 23 (s), minus the dividends paid during the taxable year increased by the consent dividends credit provided in section 28. For the purposes of this subsection the amount of dividends paid shall be computed in the same manner as provided in subsections (d), (e), (f), (g), (h), and (i) of section 27 for the purpose of the basic surtax credit provided in section 27. "(b) IMPOSITION OF TAx.-T here shall be levied, collected, and paid for each taxable year upon the Supplement Q surtax net income of every mutual investment company a surtax as follows: "Upon Supplement Q surtax net incomes not in excess of $25,000, 6 per centum of the amount thereof; "Upon Supplement Q surtax net incomes in excess of $25,000, $1,500, plus 7 per centum of the excess over $25,000." 693 54 Stat. 974. 26U.S. C. 14(c). 53 Stat. 35. 26 U. S. C.§ 102. 54 Stat. 974. 26U. s. . C.362(b). 54 Stat. 520. 26U.S.C. 15. 53 Stat. 19. 26U. S.C . 26(b). 53 Stat. 78, 98. 26U.S. C. §231 (a), 361-362 . Post, p. 694 53 Stat. 98, 99. 26 U. S (. 1.361- 362. 53 Stat. 867 . 26U.S.C. 23(s). 53 Stat. 21. 26 U. S. C.§28. 53 Stat. 20 -21. 26U.S. C. 27. 53 Stat. 98. 26 U. S. C. §S361- 362.

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