Page:United States Statutes at Large Volume 70.djvu/701

 70 S T A T. ]

PUBLIC LAW 796-JULY 25, 1956

" (4) a direct line from the point (or the port or station) specified in paragraph (3)(A), to the point (or the port or station) specified in paragraph (3)(B), passes through or over a point which is not within 225 miles of the United States. " (c) DEFINITIONS.—For purposes of this section— "(1) CONTINENTAL TTNITED STATES.—The term 'continental United States' means the existing 48 States and the District of Columbia. "(2) 225-MILE ZONE.—The term '225-mile ^one' means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States." SEC. 4. (a) Part I of subchapter C of chapter 33 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following new section: "SEC. 4264. SPECIAL RULES. "(a)

PAYMENTS MADE OUTSIDE THE UNITED STATES FOR PREPAID

ORDERS,—If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. " (b) TAX DEDUCTED U P O N REFUNDS.—Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261, shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. " (c) PAYMENT OF TAX.—Where any tax imposed by section 4261 is

not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter— " (1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; "(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first occurs: " (A) the rights to the transportation expire; or " (B) the time when the transportation becomes subject to tax; and "(3) payment of such tax shall be made to the person to whom the payment for transportation was made or to the Secretary or his delegate. " (d) APPLICATION OF TAX.—The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. '^(e) ROUND T R I P S. — I n applying this part to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. " (f) TRANSPORTATION OUTSIDE THE NORTHERN PORTION OF THE WESTERN HEMISPHERE.—In applying this part to transportation any

part of which is outside the northern portion of the Western Hemisphere—

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