Page:United States Statutes at Large Volume 56 Part 1.djvu/922

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Ante, p. 887 Ante, p. 892. Ante, pp. 821,848 Ante, p. 887. Ante, p. 893. Ante, p. 887. Rate schedule. 53 Stat. 104. 26 U.S.C., Supp. I, i500. 53 Stat. 105 . 26 U.S. C. 1501(b). 63 Stat. 33. 26U.S.C. 101. Ante. pp. 836, 872. 63 Stat. 36 . 26 U. C.. 104; Supp. I, §104. 53 Stat. 92. 26 U.S. C. 331. 63 Stat. 106 . 26U.S. C. 503(a) (2). "(b) For minimum addition to the tax for failure of withholding agent to make and file return required by Part II of Subchapter D, see section 470 (c)." (5) INTEREST ON OVERPAYMENTS. -Section 3771 is amended by adding at the end thereof the following new subsection: "(e) TAX WITHHELD AT SOURCE.- For date of payment in respect of tax withheld at source under Part II of Subchapter D, see section 322 (e)." (g) EFFECTIVE DATE. -The provisions of this section shall take effect on January 1, 1943, and shall be applicable to all wages (as defined in Part II of Subchapter D) paid on or after such date. Part II-Personal Holding Companies SEC. 181. RATES OF PERSONAL HOLDING COMPANY TAX. The rate schedule of section 500 (relating to tax on personal hold- ing companies) is amended to read as follows: "(1) 75 per centum of the amount thereof not in excess of $2,000; plus "(2) 85 per centum of the amount thereof in excess of $2,000.". SEC. 182. EXEMPTION OF CERTAIN CORPORATIONS FROM PERSONAL HOLDING COMPANY TAX. (a) EXEMPTION OF ClERrAIN LOAN AND INVESTMENT CORPORA- TIONS.- Section 501 (b) (relating to exemptions from personal hold- ing company tax) is amended to read as follows: t(b) EXCEPTIONS. - The term 'personal holding company' does not include "(1) A corporation exempt from taxation under section 101. "(2) A bank as defined in section 104. "(3) A life insurance company. "(4) A surety company. "(5) A foreign personal holding company as defined in section 331. "(6) A licensed personal finance company under State super- vision, at least 80 per centum of the gross income of which is law- ful interest received from individuals each of whose indebtedness to such company did not at any time during the taxable year exceed $300 in principal amount, if such interest is not payable in advance or compounded and is computed only on unpaid balances. "(7) A loan or investment corporation, a substantial part of the business of which consists of receiving funds not subject to check and evidenced by installment or fully paid certificates of indebtedness or investment, and making loans and discounts, and the loans to a person who is a shareholder in such corporation during such taxable year by or for whom 10 per centum or more in value of its outstanding stock is owned directly or indirectly (including in the case of an individual, stock owned by the mem- bers of his family as defined in section 503 (a) (2)) outstanding at any time during such year do not exceed $5,000 in principal amount." (b) TAXABLE YEARS TO WHICH AMEND1ENT APPLmCABI.-T he amendment made by this section shall be applicable to taxable years beginning after December 31, 1941, except that if a taxpayer, within the time and in the manner and subject to such regulations as the Commissioner with the approval of the Secretary prescribes, elects to have such amendments apply retroactively to all taxable years of the 894 [56 STAT.

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