Page:United States Statutes at Large Volume 56 Part 1.djvu/925

 77TH CONG., 2D SESS.-CH. 619-OCT. 21, 1942 on or after the date of the closing agreement or on or after the date the decision of the Board or the judgment becomes final, as the case may be, and prior to filing claim under sub- section (d), which would have been includible in the computa- tion of the basic surtax credit for the taxable year with respect to which the deficiency was asserted if distributed during such taxable year." (3) AMENDMENT OF REVENUE ACT OF 1936.-Title 1A of the Revenue Act of 1936, as amended (relating to surtax on personal holding companies), is further amended by adding at the end thereof the following new section: "SEC. 361. DEFICIENCY DIVIDENDS. "The provisions of section 407 of the Revenue Act of 1938, as amended by section 185 (d) (2) of the Revenue Act of 1942 shall be applicable with respect to a deficiency established or determined under this title for any taxable year beginning after December 31, 1936, and before January 1, 1938." (e) CONSENT DIVIDENDS. - (1) Section 28 (d) (1) of the Internal Revenue Code and section 28 (d) (1) of the Revenue Act of 1938 are amended to read as follows: "(1) Unless it files (in accordance with regulations prescribed by the Commissioner with the approval of the Secretary) with its return for such year, or within one year after the date of enactment of the Revenue Act of 1942, in the case of a corpora- tion which is a personal holding company for the taxable year with respect to which it claims the benefits of this section, signed consents made under oath by persons who were shareholders on the last day of the taxable year, of the corporation, of any class of consent stock; and". (2) For the purposes of this section, section 28 of the Reve- nue Act of 1938, as amended by this subsection, shall be appli- cable with respect to a corporation for any taxable year begin- ning after December 31, 1936, and before January 1, 1938, for which it was, under the applicable law, a personal holding company, and to its shareholders. Such section 28 shall be applied as though the phrase "basic surtax credit" in subsection (c) thereof were "dividends paid credit". (f) EFFECTIVE DATE OF AMENDMFNTS.- The amendments made by subsections (a) to (e), inclusive, shall be effective as of the date of enactment of the laws amended thereby. (g) RETROACTIVE APPLICATION.- The amendments made by sub- sections (a) to (d), inclusive, shall not apply with respect to any distribution, which is a dividend solely by reason of the last sentence of section 115 (a) of the applicable revenue law, made prior to the date of enactment of this Act by a corporation which, under the law applicable to the taxable year in which the distribution is made, is a personal holding company, or which, for the taxable year in respect of which it is made under section 504 (c) or section 506 or a corresponding provision of a prior income tax law, is a personal holding company under the law applicable to such taxable year, unless- (1) The corporation (under regulations prescribed by the Commissioner with the approval of the Secretary) files, within one year after the date of the enactment of this Act, a claim for the benefit of this section on account of such distribution; 49 Stat. 173' 52 Stat. 561. Ante, p. 896. 53 Stat. 22; 52 Stat. 471. 26U.S.C.§28(d) (1) and note. 52 Stat. 470 . 26 U.S. C. §115 (a) and note. 53 Stat. 107,108. 26 U.s.. . 504(c), 506; Supp. I, §504 (c), 506. Ante, pp. 895, 896; post, p. 898. Filing of claim. 65714' -43-PT. I - 57 56 STAT.] 897

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