82 CODIFICATION OF INTERNAL REVENUE LAWS such persons, and that the amount certified has been distributed in accordance with the method so provided. (c) OWNERSHIP or STOCK. -For the purposes of this section shares of stock of a corporation 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. (d) DEFINITION OF CHINA. -As used in this section the term "China" shall have the same meaning as when used in the China Trade Act, 1922. SEC. 263. CREDITS AGAINST THE TAX. A corporation organized under the China Trade Act, 1922, shall not be allowed the credits against the tax for taxes of foreign coun- tries and possessions of the United States allowed by section 131. SEC. 264. AFFILIATION. A corporation organized under the China Trade Act, 1922, shall not be deemed to be affiliated with any other corporation within the meaning of section 141. SEC. 265. INCOME OF SHAREHOLDERS. For exclusion of dividends from gross income, see section 116. Supplement L-Assessment and Collection of Deficiencies SEC. 271. DEFINITION OF DEFICIENCY. As used in this chapter in respect of a tax imposed by this chapter "deficiency" means- (a) The amount by which the tax imposed by this chapter exceeds the amount shown as the tax by the taxpayer upon his return; but the amount so shown on the return shall first be increased by the amounts previously assessed (or collected without assessment) as a deficiency, and decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax; or (b) If no amount is shown as the tax by the taxpayer upon his return, or if no return is made by the taxpayer, then the amount by which the tax exceeds the amounts previously assessed (or collected without assessment) as a deficiency; but such amounts previously assessed, or collected without assessment, shall first be decreased by the amounts previously abated, credited, refunded, or otherwise re- paid in respect of such tax. SEC. 272. PROCEDURE IN GENERAL (a) (1) PETITION TO BOARD OF TAX APPEALS.- If in the case of any taxpayer, the Commissioner determines that there is a deficiency in respect of the tax imposed by this chapter, the Commissioner is author- ized to send notice of such deficiency to the taxpayer by registered mail. Within ninety days after such notice is mailed (not counting Sunday or a legal holiday in the District of Columbia as the nine- tieth day), the taxpayer may file a petition with the Board of Tax Appeals for a redetermination of the deficiency. No assessment of a deficiency in respect of the tax imposed by this chapter and no dis- traint or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such ninety-day period, nor, if a petition has been filed with the Board, until the decision of the Board has become final. Notwithstanding the provisions of section 3653 (a) the making of such assessment or the beginning of such proceeding or distraint during the time such prohibition is in force may be enjoined by a proceeding in the proper court. In the case of a joint return filed by husband and wife such notice of deficiency may be a single joint notice, except that if the Commissioner has been notified by either spouse that separate residences have been established, then, in lieu
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