Page:United States Statutes at Large Volume 56 Part 1.djvu/968

 PUBLIC LAWS--CH. 619-OCT. 21, 1942 "ChinL" 53 Stat. 171. 268U. . a ., Supp. I, 11203 (b) (2). Ante, p. 762. 53 Stat. 159. 26 U.S. .. § 1200- 1287; Supp. I, if 1200 - 1203. Ante, p. 762. 53 Btat. 111 . 26 U. S. o., Supp. I, 100. B3Stat. 111. 26U.S.0. i8l. 3 Stat. 111 . 26U. S.0. §001. Supra. 53 Stat. 111 . 26U.S. 0 . l 800- e04; Supp. I, 600, 002. Pod, p. 9U. 53 Stat. 111. 2BU.S.O., Supp.L IaL SUPTL shall be considered to be owned by the person in whom the equitable right to the income from such shares is in good faith vested; and as used in this subsection the term 'China' shall have the same mean- ing as when used in the China Trade Act, 1922." (c) RETURNS. -The last sentence of section 1203 (b) (2) (relating to extensions of time for filing capital stock tax returns) is amended to read as follows: "With respect to the years ended June 30, 1941, and June 30, 1942, the extension may be for not more than ninety days." (d) PRIOR RETURNS EFFEcTVE. - If a return for the year ended June 30, 1942, is filed under Chapter 6 of the Internal Revenue Code, without regard to the amendment thereof as made by this Act, the adjusted declared value reported by the corporation on such return (whether or not correct) shall constitute the declared value for the purposes of such Chapter 6, as amended by this Act, unless a different value is declared on a subsequent return for such year received within the prescribed filing period. (e) EFFEcTrVE DATE. - T his section shall be effective only with respect to the year ended June 30, 1942, and succeeding years. SEC. 302. DECLARED VALUE EXCESS-PROFITS TAX. (a) TECHNICAL AMENDMENTS.- (1) Section 600 (relating to rate of declared value excess profits tax) is amended by striking out the word "adjusted" wherever occurring therein. (2) Section 601 (relating to declared value) is amended by striking out the word "adjusted" wherever occurring therein. (b) EFEcTIV DATE.- T his section shall be effective only with respect to income-tax taxable years ending after June 30, 1942, and succeeding years. SEC. 303. DECLARED VALUE EXCESS-PROFITS TAX FOR TAXABLE YEARS OF LESS THAN TWELVE MONTHS. (a) Section 601 (relating to the adjusted declared value) is amended by striking out the last sentence thereof. (b) Subchapter B of Chapter 2 is amended by inserting after sec- tion 604 the following new section:' "SEC. 605. INCOME-TAX TAXABLE YEAR OF LESS THAN TWELVE MONTHS. "(a) GENERAL RULE.- If the income-tax taxable year is a period of less than twelve months on account of a change in the accounting period of the taxpayer, the net income determined under section 602 for such income-tax taxable year (referred to in this section as the 'short taxable year') shall be placed on an annual basis by multi- plying the amount thereof by the number of days in the twelve months ending with the close of the short taxable year and dividing by the number of days in the short taxable year. The tax shall be such part of the tax computed on such annual basis as the number of days m the short taxable year is of the number of days in the twelve months ending with the close of the short taxable year. "(b) EXCEPTION.- If the taxpayer establishes the amount of the tax under section 600 for the period of twelve months beginning with the first day of the short taxable year computed as if such twelve- month period were an income-tax taxable year, under the law appli- cable to the short taxable year, and using the adjusted declared value applicable in determining the tax for such short taxable year, then [56 STAT.

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