Washington, Tuesday, March 17, 1936
TREASURY DEPARTMENT.
- Bureau of Internal Revenue.
Regulations 93 Relating to the Carriers’ Tax, Employees’ Tax, and Employees’ Representatives’ Tax Under the Act Approved August 29, 1935 (49 Stat. 974)
CHAPTER I. DEFINITIONS
Article 1. Definitions of miscellaneous terms.—When used in these regulations, the term—
(a) Act, unless otherwise indicated, means the Act entitled "An Act To levy an exise tax upon carriers and an income tax upon their employees, and for other purposes", approves August 29, 1935 (Public. No. 400. 74th Congress; 49 Stat. 974).
(b) Railway Labor Act means the Act approved May 20, 1926 (44 Stat. 577), as amended by the Act approved June 21, 1934 (48 Stat. 1185).
(c) Tax means the carriers’ tax, the employees’ tax, or the representatives’ tax.
(d) Carriers’ tax means the tax imposed by section 4 of the Act.
(e) Employees’ tax means the tax imposed by section 2 of the Act.
(f) Representatives’ tax means the tax imposed by section 7 of the Act.
(g) Commissioner means the Commissioner of Internal Revenue.
(h) Collector means the collector of internal revenue
(i) Person includes an individual, a corporation, a partnership, a trust or estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture, or other unincorporated organization or group, through or by means of which any business, financial operation, or venture is carried on. It includes a guardian, trustee, executor, administrator, committee, receiver, assignee for the benefit of creditors, conservator, or any person acting in a fiduciary capacity.
(j) United States when used in geographical sense means the States, Alaska, Hawaii, and the District of Columbia.
Section 1 (a) of the act
(a) The term "carrier" means any express company, sleeping-car company, or carrier by railroad, subject to the Interstate Commerce Act, and any company which may be directly or indirectly owned or controlled thereby or under common control therewith, and which operates any equipment of facilities or performs any service (other than trucking service) in connection with the transportation of passengers or property by railroad, or the receipt, delivery, evelation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of and operating the business of any such carrier": Provided, however, That the term "carrier" shall not include any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general steam-railroad system of transportation, but shall not exclude any part of the general steam-railroad system of transportation now or hereafter operated by any other motive power. The Interstate Commerce Commission is hereby authorized and directed upon request of the Commissioner of Internal Revenue or upon complaint of any party interested to determine after hearing whether any line operated by electric power falls within the terms of this proviso.
Art. 2. Definition of "carrier".—When used in these regulations, the term carrier means—
(a) Any express company, sleeping-car company or carrier by railroad, subject to the Interstate Commerce Act.
(b) Any company which—
(1) Is directly or indirectly owned or controlled by or under common control with a carrier as defined in paragraph (a) of this article, and
(2) operates any equipment or facilities or performs any service (other than trucking service) in connection with—
(A) the transportation of passengers or property by railroad, or
(B) the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad.
Example: Carrier A legally controls than 50 per cent of the outstanding, voting capital stock of company B, which company, B, in turn, legally controls more than 50 per cent of the outstanding, voting capital stock of company C. Companies B and C are "directly or indirectly" controlled by carrier A.
(c) Any receiver, trustee, or other individual or body, judicial or otherwise, when in possession of and operating the business of any carrier as defined in paragraph (a) or (b) of this article.
The term as defined in paragraph (a) or (b) of this article does not include any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general steam-railroad system of transportation, but shall not exclude any part of the general steam-railroad system of transportation on August 29, 1935, or thereafter is operated by any other motive power. In the case of a foreign corporation the term has reference to such corporation only with respect to its business done in the United States.
’'Section 1 (b), (c), (e), and (f) of the act
(b) The term "employee" means (1) each person who at or after the enactment hereof is in the service of a carrier, and (2) each officer or other official representative of an "employee organization", herein called "representative", who before or after the effective date has performed service for a carrier, who is duly designated and authorized to represent employees under and in accordance with the Railway Labor Act, and who, during, or immediately following employment by a carrier, was or is engaged in such representative service in behalf of such employees.
(c) A person shall be deemed to be in the service of a carrier whenever he may be subject to it’s continuing author
