Page:United States Statutes at Large Volume 56 Part 1.djvu/895

 56 STAT.] 77TH CONG. , 2D SESS.-CH. 619-OCT. 21, 1942 (2) In the case of a stock bonus, pension, profit sharing or annuity plan put into effect after September 1, 1942, such a plan shall be con- sidered as satisfying the requirements of section 165 (a) (3), (4), (5) and (6) for the period beginning with the date such plan is put into effect and ending December 31, 1943, if the plan satisfies such requirements by December 31, 1943. (e) TECHNICAL AMENDMENT TO INVESTMENT COMPANY ACT OF 19 4 0.- Section 3 (c) (13) of the Investment Company Act of 1940 is amended to read as follows: "(13) Any employees' stock bonus, pension, or profit-sharing trust which meets the conditions of section 165 of the Internal Revenue Code, as amended." 867 Plans put into effect after Sept. 1, 1942. Ante, pp. 862,863. 64 Stat. 799. 15 U. S. C. 80a-3 (13). Ante, p. 82. SEC. 163. LIFE INSURANCE COMPANIES. 13 Stat. 71. (a) Sections 201, 202, and 203 (relating to life insurance corn- 26 U. . C. 1 201, panies) are amended to read as follows: 202,203. "SEC. 201 . LIFE INSURANCE COMPANIES. "(a) IMPOSITION OF TAX.- "(1) IN GENERAL. -There shall be levied, collected, and paid for each taxable year upon the adjusted normal-tax net income (as defined in section 202) and upon the adjusted corporation surtax net income (as defined in section 203) of every life insur- ance company taxes at the rates provided in section 13 or section 14 (b) and in section 15 (b). "(2) FOREIGN LIFE INSURANCE COMPANIES.-A foreign life in- surance company carrying on a life insurance business within the United States if with respect to its United States business it would qualify as a life insurance company under subsection (b) shall be taxable in the same manner as a domestic life insur- ance company except that the determinations necessary for the purposes of this chapter shall be made on the basis of the income, disbursements, assets, and liabilities reported in the annual state- ment for the taxable year of the United States business of such company on the form approved for life insurance companies by the National Association of Insurance Commissioners. "(3) No UNITED STATES INSURANCE BUSINESS. - Foreign life in- surance companies not carrying on an insurance business within the United States shall not be taxable under this section but shall be taxable as other foreign corporations. "(b) DEFINITION OF LIFE INSURANCE COMPANY.-When used in this chapter, the term 'life insurance company' means an insurance com- pany which is engaged in the business of issuing life insurance and annuity contracts (either separately or combined with health and accident insurance), or noncancellable contracts of health and acci- dent insurance, and the life insurance reserves (as defined in subsec- tion (c) (2)) plus unearned premiums and unpaid losses on non- cancellable life, health, or accident policies not included in life insurance reserves, of which comprise more than 50 per centum of its total reserves. For the purpose of this subsection, total reserves means life insurance reserves, unearned premiums and unpaid losses not included in life insurance reserves, and all other insurance reserves required by law. For taxable years beginning after December 31, 1943, a burial or funeral benefit insurance company engaged directly in the manufacture of funeral supplies or the performance of funeral services shall not be taxable under this section but shall be taxable under section 204 or section 207. Pot, p. 870. 53 tat. 7,8. 26 U.. 0.113; Supp. I, §I13, 14 (b). Ante, pp. 805 '806 53 Stat. 72. 26U.S.0.i204. Ante, pp. 821,861. Post, pp. 870 -87

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