Page:United States Statutes at Large Volume 56 Part 1.djvu/888

 PUBLIC LAWS--CH. 619-OCT. 21, 1942 53 Stat. 33. 26 U. S. C.§ 101. Ante, p. 836; post, p. 872. Post, pp. 867,872. 53 Stat. 79. 26U..C.. 251; Supp. I, § 251. Ante, p. 828; post, p. 861; infra. 42 Stat. 849. 15 U. S. C. S5141- 162. Post, p. 878. 54 Stat. 975. 26 U.. C.C. 710- 752; Supp. I, 44 710- 743. Post, p. 899. 53 Stat. 82 . 26 U.S. C. §272 (a). Post, p. 876. 53 Stat. 87. 26U. .C. 277. 53 Stat. 25 . 26 U.. C. 45. 53 Stat. 881 . 26 U.. C.C 152. 53 Stat. 79. 26U.S.C. 238. 53 Stat. 80 . 26U.S.C. 251(1). 53 Stat. 82. 26U.S.C. 264. 53 Stat. 28. 26U.S.C. 52(b). Ante, p. 858. 53 Stat. 60 . 26U.S. C., Supp. I, 1143 (a) (1). Ante, p. 808 "(e) DEFINITION OF 'INCLUDIBLE CORPORATION'. -As used in this section, the term 'includible corporation' means any corporation except- "(1) Corporations exempt under section 101 from the tax imposed by this chapter. "(2) Insurance companies subject to taxation under section 201 or 207. "(3) Foreign corporations. "(4) Corporations entitled to the benefits of section 251, by reason of receiving a large percentage of their income from sources within possessions of the United States. "(5) Corporations organized under the China Trade Act, 1922. "(6) Regulated investment companies subject to tax under Supplement Q. "(f) INCLUDIBLE INSURANCE COMPANIES. -Despite the provisions of paragraph (2) of subsection (e), two or more domestic insurance companies each of which is subject to taxation under the same section of this chapter shall be considered as includible corporations for the purpose of the application of subsection (d) to such insurance companies alone. "(g) SusIDIARY FORMED To COMPLY WITH FOREIGN LAW.-In the case of a domestic corporation owning or controlling, directly or indi- rectly, 100 per centum of the capital stock (exclusive of directors' qualifying shares) of a corporation organized under the laws of a contiguous foreign country and maintained solely for the purpose of complying with the laws of such country as to title and operation of property, such foreign corporation may, at the option of the domestic corporation, be treated for the purpose of this chapter and of Sub- chapter E of Chapter 2 as a domestic corporation. "(h) SUSPENSION OF RUNNING OF STATUTE OF LIMITATIONS.-If a notice under section 272 (a) in respect of a deficiency for any taxable year is mailed to a corporation, the suspension of the running of the statute of limitations, provided in section 277, shall apply in the case of corporations with which such corporation made a consolidated return for such taxable year. "(i) ALLOCATION OF INCOME AND DEDUCTIONS.- For allocation of income and deductions of related trades or businesses, see section 45." (b) PAN-AMERICAN TRADE CORPORATIONS. -Section 152 (relating to consolidated income-tax returns of Pan-American trade corporations) shall not apply with respect to any taxable year beginning after December 31, 1941. (c) FOREIGN CORPORATIONS.-Section 238 (relating to denial of affiliation of foreign corporations) is repealed. (d) SECTION 251 CORPORATIONS. -Section 251 (i) (relating to denial of affiliation of section 251 corporations) is repealed. (e) CHINA TRADE Acr CORPORATIONS. - Section 264 (relating to denial of affiliation of China Trade Act corporations) is repealed. (f) CRoss-REFERENCE.-Section 52 (b) is amended to read as follows: "(b) CRoss-RErERENcE. - For provisions relating to consolidated returns, see section 141." SEC. 160. ALIENS AND FOREIGN CORPORATIONS TREATED AS NON- RESIDENTS. (a) (1) Section 143 (a) (1) (relating to withholding of tax on interest from tax-free covenant bonds) is amended by striking out "and not having any office or place of business therein" wherever occurring therein. [56 STAT.

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