Page:United States Statutes at Large Volume 78.djvu/160

 118

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (B) such corporation's surtax exemption is disallowed for such taxable year under any provision of this subtitle. ^6 u'sc'n^*

"(^)

"^^^

TREATED AS IMPOSED BY SECTION 1 1, ETC.

If for the

taxable year of a corporation a tax is imposed by section 11 on the taxable income of such corporation, the additional tax imposed by this subsection shall be treated for purposes of this title as a tax imposed by section 11. If for the taxable year of a corporation a tax is imposed on the taxable income of such corporation which is computed under any other section by reference to section 11, the additional tax imposed by this subsection shall be treated for purposes of this title as imposed by such other section. "(3) TAXABLE INCOME DEFINED.—For purposes of this subsection, the term 'taxable income' means— " (A) in the case of a corporation subject to tax under sec^^68A Stat. 169. ^jon 511, its Unrelated business taxable income (within the 26use5ii,5i2. meaning of section 512); " (B) in the case of a life insurance company, its life insurance company taxable income (within the meaning of section 73 Stat. 115. 802(b)); 26 USC 80 2. " (C) in the case of a regulated investment company, its investment company taxable income (within the meaning of 26 USC 852. section 852(b)(2)); and " (D) in the case of a real estate investment trust, its real estate investment trust taxable income (within the meaning 26 USC 85T* of section 857(b)(2)). "(4) SPECIAL RULES.—If for the taxable year an additional tax is imposed on the taxable income of a corporation by this sub^6 USC'244* section, then sections 244 (relating to dividends received on cer26 USC 24?! tain preferred stock), 247 (relating to dividends paid on certain 73 Stat. 116. preferred stock of public utilities), 804(a)(3) (relating to deduc26 USC 804. ^.^^^ ^^^ partially tax-exempt interest in the case of a life insur26 USC 922. .^y^^Q company), and 922 (relating to special deduction for Western Hemisphere trade corporations) shall be applied without regard to the additional tax imposed by this subsection. "(c) TERMINATION OF ELECTION.—An election by a controlled group of corporations under subsection (a) shall terminate with respect to such group— "(1) CONSENT OF THE MEMBERS.—If such group files a termination of such election with respect to a specified December 31, and— " (A) each corporation which is a component member of such group on such December 31, and " (B) each other corporation which is a component member of such group on any succeeding December 31 before the day on which the termination is filed, consents to such termination. "(2) REFUSAL BY NEW MEMBER TO CONSENT.—If on December 31 of any year such group inchules a component member which— " (A) on the immediately preceding January 1 was not a member of such group, and " (B) within the time and in the manner provided by regiilations prescril^ed by the Secretary or his delegate, files a statement that it does not consent to the election. "(3)

j^°*''PP- 120,

CONSOLIDATED RETLTRNS.—If—

" (A) a corporation is a component member (determined without regard to section 1563(b)(3)) of such group on a December 31 included within a taxable 3'ear ending on or after January 1, 1964, and

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