Page:United States Statutes at Large Volume 58 Part 1.djvu/100

 PUBLIC LAWS-CH. 63 -FEB. 25, 1944 of a recomputation of the amortization deduction pursuant to section 54 tat. c. 124 (d) of the Internal Revenue Code until after such recomputation (d); upp. III, 124 has been made in connection with a determination of the taxes (d) stat. 4, 10i in, imposed by Chapters 1, 2A, 2B, 2D, and 2E of the Internal Revenue 112; 4 Stat. 75. Code for the fiscal year to which the excessive profits determined i00-511, 660~64 ,1 - by the renegotiation are attributable or (ii) by reason of the applica- 7I,I 3476,W -;so tion of a carry-over or carry-back under any circumstances. The 60(°05,710-783 . absence of such a recomputation of the amortization deductions ot,Ppp .231 d seq., referred to in clause (i) above shall not constitute a cause for post- 647 poning the making of an agreement, or the entry of an order, determining the amount of excessive profits, or for staying the elimination thereof. Renegotiationmade "(D) Notwithstanding any of the provisions of subsection (c) t roput (4) of this section to the contrary, in the case of a renegotiation which is made prior to such recomputation there shall be repaid by the United States (without interest) to the contractor or subcon- tractor after such recomputation the amount of a net renegotiation rebate computed in the following described manner. There shall first be ascertained the portion of the excessive profits determined by the renegotiation which is attributable to the fiscal year with respect to which a net renegotiation rebate is claimed by the contractor or subcontractor (hereinafter referred to as 'renegotiated year'). There shall then be ascertained the amount of the gross renegotiation rebate for the renegotiated year, which amount shall be an allocable part of the additional amortization deduction which is allowed for the renegotiated year upon the recomputation made pursuant to sec- 6St s..9 c 24(d);tion 124 (d) of the Internal Revenue Code in connection with the 8upp.I,§124(d). ' determination of the taxes for such year and which is attributable to contracts with the Departments and subcontracts, except that the amount of the gross renegotiation rebate shall not exceed the amount of excessive profits eliminated for the renegotiated year pursuant to the renegotiation. The allocation of the additional amortization deduction attributable to contracts with the Departments and sub- contracts, and the allocation of the additional amortization deduction to the renegotiated year shall be determined in accordance with regulations prescribed by the Board. There shall then be ascertained the amount of the contractor's or subcontractor's Federal tax benefit from the renegotiation for the renegotiated year. Such Federal tax benefit shall be the amount by which the taxes for the renegotiated 3 S;tat.4,104, 111, year under Chapters 1, 2A, 2B, 2D, and 2E of the Internal Revenue 0U 6 . u. c.0-- Code were decreased by reason of omitting from gross income (or by 706,710-72; supp, reason of the application of the provisions of section 3806 (a) of the i1s , 0-78 ' Internal Revenue Code with respect to) that portion of the excessive Ante, p. 26 eq. profits for the renegotiated year which is equal to the amount of the 647. ' gross renegotiation rebate. The amount by which the gross renego- 26u.s. ., supp. tiation rebate for the renegotiated year exceeds the amount of the , 13806(a). contractor's or subcontractor's Federal tax benefit from the renego- tiation for such year shall be the amount of the net renegotiation rebate for such year. "Subeontract." "(5) The term 'subcontract' means- "(A) Any purchase order or agreement to perform all or any part of the work, or to make or furnish any article, required for the performance of any other contract or subcontract, but such term does not include any purchase order or agreement to furnish office supplies; or "(B) Any contract or arrangement other than a contract or arrangement between two contracting parties, one of which par- ties is found by the Board to be a bona fide executive officer, [58 STAT.

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