Page:United States Statutes at Large Volume 40 Part 1.djvu/1113

SIXTY-FIFTH CONGRESS. . Sess. III. Ch. 18. 1919. 1095 the net income of which for the taxable year 1918 was less than 20 "*¤·“gg§ '¤°’· pir centum of its inylestei capgtal for suqhthygarc Prolvwldledslifurther, www ° atanytaxpa erwotaesavant eo aragra all a °° the tax imposed, by section 1000 of Act a1i)d by the first sliibyj u}’•i:¢,b1:llu0i>l$ division of section 407 of the Revenue Act of 1916, as if such taxpayer had been a corporation on and after January 1, 1918, with a capital stock haviiég no par value. f any asset of e trade or business in existence both during the m¤¤¤¤;¢igg_¤¤M taxable year and any prewar year is included in the invested ca ital www pi for the taxable year but is not included in the invested capital) for such prewar year, or is valued on a different basis in computing the invested capital for the taxable year and such prewar year respect- _ ively, then under rules and regulations to be prescribed by the’,,, °"" "“‘ Commissioner with the approval of the Secretary such readjustments shall be made as a.re necessary to place the computation of the invested csépital for such prewar year on the basis employed in determining e invested capital for the taxable year. · · Sec. 331. In the case of the reorganization consolidation, or .,t*;;§·“g change of ownership of a trade or business, or change of ownershi s,1su. of property, after arch 3, 1917, if an interest or controlin such ttul}; or usmess or property of 50 per centum or more remains in the same persons, or any of them, then no asset transferred or received from the previous owner shall, for the purpose of de invested capital, e allowed a greater value than would have been owed under this title in computing the invested capital of such previous owner if such asset had not been so transferred or received: Provided, That if such previous owner was not a co ration, then the value of any sta-p¤F”i•a°'l•iii"°°°i asset so transferred or received sl1all1li)e”taken at its cost of acquisition (at the date when acquired by such piéevious owner) with proper allowance for depreciation, imapairment, tterment or development, but no addition to the origin cost shall be made for any charglq or expenditure deducted as expense or otherwise on or after Marc 1, 1913, in computing the net income of such previous owner for purposes of taxation. ’ Paar VII.—MISCELLAN’EOUS. m=°•“*¤°°*¤- Sno: 335. (a) That if a corporation (other than a personal service '1`v= Mr Mw wr coigiporation) makes return for a fiscal year beginning in 1917 and °°dm°mm8` en ing in 1918, the tax for the first taxa le year under this title shall be the sum of : (1) the same {proportion of a tax for the entire ppriod ,,,§§‘,f°"‘°°’ °°'“‘ computed under 'ljitle H o the _Revenue Act of 1917 whic the portion of such period falling withm the calendar year 1917 is of the entire period, and (2) the same proportion of a tax for the entire period computed under this title at the rates specified in subdivision (a) of section 301 which the portion of such period falling within the calendar year 1918 is of the entire period. Ang amount heretofore ,,§,,'§'},‘§,’,L'°' '°"“‘°‘ or hereafter paid on account of the tax for such iiscgxrldyear by Title II of the Revenue Act of 1917 sh be credited tow the payment or are aix imposed for such astra year by this uae, and ir ,.;.§:‘°¤¤· ·*=-· ¤‘ the amount so paid exceeds the amormt of the tax imposed by this title, the excess shall be credited or refunded to the corporation in accordance with the provisions of section 252. _ (b) If_ a corporation makes return for a fiscal year beginning in 1918 mi3{§’“1’"”°" and ending in 1919, the tax for such fiscal year imder this title shall "*"P°'“°“ be the sum of 2 (1) the same proportion of a tax for the entire period computed under subdivision (a) of section 301 which the portion of suchxperiod falling within the calendar year 1918 is of the entire peri , and (2) the same pro ortion of a tax for the entire period computed under subdivision (li) or (c) of section 301 which the por-