Page:United States Statutes at Large Volume 65.djvu/502

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PUBLIC LAW 183—OCT. 20, 1951

[65 STAT.

((J) EEGULATED INVESTMENT COMPANIES.—Section 362(b) (relating

to tax on regulated investment companies) is hereby amended by striking out paragraphs (3) and (4) and inserting in lieu thereof the following: " (3) I n the case of taxable years beginning after December 31, 1950, and before April 1, 1951, and ending after March 31, 1951, there shall be levied, collected, and paid for each taxable year upon 26 u^s.^c. § 361 et ^^^ Supplement Q net income a tax equal to 28% per centum of the seq. amount thereof. I n the case of taxable years beginning after March 31, 1951, and before April 1, 1954, there shall be levied, collected, and paid for each taxable year upon its Supplement Q net income a tax equal to 30 per centum of the amount thereof. I n the case of taxable years beginning after March 31, 1954, there shall be levied, collected, and paid for each taxable year upon its Supplement Q net income a tax equal to 25 per centum of the amount thereof. "(4) I n the case of taxable years beginning after December 31, 1950, there shall be levied, collected, and paid for each taxable year upon its Supplement Q surtax net income a tax equal to 22 per centum of the amount thereof in excess of $25,000." (e) BUSINESS INCOME OF CERTAIN SECTION 101 ORGANIZATIONS.—

26 u*.^s. ^^•§ 421 (a) Section 421(a)(1) (relating to imposition of tax on business income of (!)• certain section 101 organizations) is hereby amended by inserting 26 u.V. c! § 101. before the period at the end thereof the following: "; except that (A) in the case of taxable years beginning before April 1, 1951, and ending after March 31, 1951, the normal tax shall be 28% per centum of the 26 u^s ^c' § 421 et Supplement U net income, and (B) in the case of taxable years begin««?. ning after March 31, 1951, and before April 1, 1954, the normal tax shall be 30 per centum of the Supplement U net income". 26 u*s c°§i5 (^) -AMENDMENT OF SECHON 15.-—Section 15 (relating to surtax on corporations) is hereby amended to read as follows: "SEC. 15. SURTAX ON CORPORATIONS. " (a) CORPORATION SURTAX N E T INCOME.—For the purposes of this chapter, the term 'corporation surtax net income' means the net income minus the sum of the following credits: "(1) The credit for dividends received provided in section 63 Stat. 18. 26 U. S. 0. § 26 (b).

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"(2) I n the case of a public utility, the credit for dividends 56 Stat, m^ ^^ ^^^ paid on its preferred stock provided in section 26(h); "(3) I n the case of a western hemisphere trade corporation (as ^^6 Stat. 838; 64 Stat. defined in section 109), the credit provided in section 26(i). 26 U.S.C. § 109, " (b) IMPOSITION OF TAX.—There shall be levied, collected, and paid § for each taxable year upon the corporation surtax net income of every corporation (except a corporation subject to a tax imposed by section 53s^at^78^7i^98^^ 231 (a), Supplement G, or Supplement Q) a surtax of 22 per centum (a), 201 eiseq'., 361 et of the amouiit of the corporation surtax net income in excess of $25,000.

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" (c) DISALLOWANCE OF SURTAX EXEMPTION AND MINIMUM EXCESS PROFITS CREDIT.—If any corporation transfers, on or after January

1, 1951, all or part of its property (other than money) to another corporation which was created for the purpose of acquiring such property or which was not actively engaged in business at the time of such acquisition, and if after such transfer the transferor corporation or its stockholders, or both, are in control of such transferee corporation during any part of the taxable year of such transferee corporation, then such transferee corporation shall not for such tax-

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