Page:United States Statutes at Large Volume 42 Part 1.djvu/275

SIXTY-SEVENTH CONGRESS.- Sess. I. C11. 136. 1921. 247 shall not be paid by the iiduciary, but there sl1a.l.lbe included in com- IN°°ME T-*X· pulsing the net income of each benenciary that part of the income of the estate or trust for its taxable year which, pursuant to the instrument or order governing the distribution, is distributable to such beneficiary, whether distributed or not, or, if his taxable year is different from that of the estate or trust, then there shall be included. in computing his net income his distributive share of the income of the estate or trust for its taxable year ending within the taxable year of the benefieier . In such csses the beneficiary shall, for the purpose "’€‘ii“"’“°“‘**d· of the normalrtax, be allowed as credits, in addition to the credits allowed to him under section 215, his proportionate share of such amounts specified in subdivisions (:1,) and (b) of section 216 es ere ‘ received by the estate or trust. · — (e) In the case of an estate or trust the income of which consists p§§g§1¥g§§8“§;§;»1‘§gé§ both of income of the class described in paragraph (4) of subdivision with ¤¤1w¥i¤¤¤m<+. (a,) of this section and other income, the net income of the estate or trust shall be computed and za, reizulfn thereof made by the fiduciary in accordance with subdivision (b) and the tax shall be imposed, and An f diy shall he paid by the fiduciary in accordance with subdivision (0), trlbugVg1=lul2g»b?el1eHeiexcepis that there shall be allowed as an additional deduction in "“°S· computing the net income of the estate or trust that part of its income of the class described in paragraph (4) of subdivision (a) which, pursuant to the instrument or order governing the distribution, is P tmlud dmm distributable during its taxable year to the beneficiaries. In eases eomaéroxbenerllcxaw. under this subdivision there shell be included, as provided in subdivision (d) of this section, in eompntin the net income of each beneficiary, that part of the income of ghe estate or trust which, ursuant to the instrument or order governinvr the distribution, is gistributsble during the taxable year to suchnbeneficier . ’ Pmmming mst (f) A trust created by en emfwloyer as agart of aa, stoch bonus 01’§°1`, %lr¤p1<>r¤¤¤ Mt profit-sharing plan for the exc usive bene is of some or all of his as ' employees, to which contributions are made by such employer, or employees, or both, for the lpurpose of distributing to such employees the earnings and prineipe, of the fund accumulated by the trust _ _ in accordance with such plan, shall not be taxable under this section, m£‘§_.1'“>§;’,Q1§$r**“6cEi§g‘§F“ but the amount actually distributed or made available to sm distributee shall be taxable to him in the year in which so distributed or made available to the extent that it exceeds the amounts paid in _ by him. Such dishributees shall for the purpose of the normal tax G”°°““**“°W°d· be allowed as credits that part of the amount so distributed or made available as represents the items specified in subdivisions (e) mud (b) of section 216. 1cvAs1oN or sUn·rAxms mr moonrommxom. b§‘°i§'.]’§‘,?;§},,‘§ftj§‘“"°S _ Sino. 220. That if any corporation, however created or organized, m";;§§mgl•{‘nFf“$·;•g*;Ilgf 1Sfo1'I|]1Bd or availed of for the purpose of greventing the imposition of mips gains, etc-, to the surtex upon its stockholders or meme ers through the medium of §Z,‘I,`§h01§§$§`“°S °f gizrxnitting 1ts gains and prohts to accumulate instead of being 'vided or distributed, there shall be levied, collected; and paid for each taxable year upon the net income of such corporation a, tex egual to 25 ger centum of the amount thereof, which shall be in e dition to the tex imposed by section 230 of this title and shall be computed, collected, and paid upon the same basis and in the same ‘?¤mP¤*¤'>i<>¤ ofmanner zmd subject to the same rovisions of law, including penal- _ ties, as that tax: Provided, That ifpsll the stockholders or members of {,’$’V"§‘$,,31 tax in such corporation agree thereto, the Commissioner may, in lieu of all §;‘=i'gh9S§0gg'h§g;••;M¤* income, wamproiits and excess-profits taxes imposed upon the corpo— ` ration for the taxable year, tex the stockholders or members of such corporation upon their distributive shares in the net income of the