Page:United States Statutes at Large Volume 42 Part 1.djvu/289

SIXTY·SEVENTH CONGRESS. Sess. I. C11. 136. 1921. 261 TAXES ON INSURANCE ooursnms. Ingf$:g°:**·wm_ BIKES. Sec. 242. That when used in this title the term “life insurance PM•=¤¤i¤e of "1¤;;i¤· companlgl; means an insurance company engaged in the business of s`m”°° °°mp°°y' issuing einsurance and annuity contracts (including contracts of combined life, health, and accident insurance), the reserve funds of which held for the fulfillment of such contracts comprise more than 50 Sper centum of its total reserve funds. Ec. 243. That in lieu of the taxes imposed by sections 230 and l,,;}"§,g_’,‘;‘,§,‘f,f,°*“°§’•°’,*},°°‘ 1000 and by Title III, there shall be levied, collected, and paid for nies N the calendar year 1921 and for each taxable year thereafter upon “}Z°fE’§i‘;?€Z' the net income of every life insurance company a tax as follows: "°"» P- M- (1) In the case of a domestic life insurance company, the same D°m““°· percentage of its net income as is imposed upon other corporations y section 230; _ _ l _ (2) In the case of a foreign life insurance company, the same per- U§`Q{’,,{,°§§,,‘§;,s ,,,,{§,§§,'f centage of its net income from sources within the United States as is imgosed upon the net income of other corporations by section 230. Ec. 244. (a) That in the case of a life insurance company the m§I;>g¤>°S 0* BMS i¤· term "gross income" means the gross amount of income received ` during the taxable year from interest, dividends, and rents. H (b) The term "reserve funds required by law" includes, in the q,,i,I;d°S§§vf,,f3?dS '° case of assessment insurance, sums actually deposited by any com- SG;1gg;?Pi°¤ *%°¤•· Elany or association with State or Territorial officers pursuant to ` w as guaranty or reserve funds, and any funds maintained under the charter or articles of incorporation of the company or association exclusively for the payment of claims arising under certificates of membership or plplicies issued upon the assessment plan and not subject to an other use. - Sec. 245. gn.) That in the case of a. life insurance company the N°" “’°°m°· term "net income" means the gross income le s- Dad u (1) The amount of interest received during the taxable year magic °?1s°°n°°l` which under paragraph (4) of subdivision (b) o section 213 is ex- E"°“‘¥’“”*°‘°’*· em t from taxation under this title; g2) An amount e ual to the excess, if any, over the deduction w§§;";¤;‘,{,’;§{ T; specified in paragrapch (1) of this subdivision, of 4 (per centum of the ¤¤¤¤¤¤¤¤¤¤· mean of the reserve funds required by law and hel at the beginning and end of the taxable year, plus (in case of life insurance companies issuing policies covering life, health, and accident insurance com— bined in one policy issued on the weekly plrennum payment plan, continuing for life and not sulgect to cance ation) 4 per centum of the mean of such reserve fun s (not required by law) held at the beginning and end of the taxable year, as the Commissioner finds to be necessary for the protection of the holders of such policies only; (3) The amount received as dividends (A) from a domestic corpo- mg§,“ d°· ration other than a corporation entitled to the benefits of section 262, {M asso. _ or (B) from any foreign corporation when it is shown to the satisfac- ;m‘{'°f€§, tion of the Commissioner that more than 50 per centum of the gross S°°'°°°· income of such foreign co oration for the t ree—gear period ending with the close of its taxablle year preceding the eclaration of suc dividends (or for such part of such period as the foreign corporation has been in existence) was derived from sources within the United ·*""·P·’“· States as determined under section 217; mmm umd (4) An amount equal to 2 per centum of any sums held at_the end an-mass. of the taxable year as a reserve for dividends (other than dividends payable during the year following the taxable year) the payment of which is deferred for a period of not less than five years from the date of the policy contract;