SEVENTIETH CONGRESS . SESS . I . Cu. 852. 1928.
835 against the claims and demands of any person for the amount of
INCOME TAX any pay ments ma de in ac cordance with th e provis ions of this sec tion . (d) Income of recipient .-Income upon which any tax is Returns by re cipient required to be withheld at the source under this section shall be of tax withheld . included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the amount of income tax as computed in such return . (e) Tax paid by recipi ent .-If any tax req uired under this not Tax recollectble . cipient section to be deducted and withheld is paid by the recipient of the income, it shall not be re-collected from the withholding agent
- nor
in cases in which the tax is so paid shall any penalty be imposed upon or collected from the recipient of the income or the withholding agent f or failu re to re turn or pay the same, un less suc h failur e was fraudulent and for the purpose of evading payment . (f) Refunds and credits .-Where there has been an overpayment to withhold g credits of tax under this section any refund or credit made under the pro- visions of section 322 shall be made to the withholding agent unless Post, p. 861. the amount of such tax was actually withheld by the withholding agent . SEC . 145. PAYMENT OF CORPORATION INCOME TAX AT SOURCE . Payment at source . In the cas e of for eign cor poration s subjec t to tax ation un der this By foreign corpora- 3
tions not in business in title not engaged in trade or business within the United States and United States . not having any office or place of business therein, there shall be deducted and withheld at the source in the same manner and upon Ante, p. 834. the same items of income as is provided in section 144 a tax equal to Rates. 131/2 per centum thereof in respect of all payments of income made before the enactment of this Act, and equal to 12 per centum thereof in respect of all payments of income made after the enact- ment of this Act, and such tax s hall be re turned and paid in the same manner and subject to the same conditions as provided in that Proviso. section : Provided, That in the case of interest described in sub- Ra te when interest granted free of tax . section (a) of that section (relating to tax-free covenant bonds) the deduc tion and wi thhol ding shall be at the rate s pecif ied i n such subsecti on. SEC. 146. PENALTIES . (a) Any person re quir ed u nder thi s ti tle to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this title, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor an d, up on conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecut ion . (b) Any person required under this title to collect, account for, and pay over any tax imposed by this title, who willfully fails to colle ct or truth fully acco unt fo r and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon convic tion there of, be fine d not more than $10,0 00, or imprisoned for not more than five years, or both, together with the costs of prosecution . (c) The term "pe rson" as used in this se ction inc ludes an officer or employee of a corporation or a member or employee of a partner- Pen alt ies . For willful failure to pay tax, make returns, etc . Punishment for. For willful failure to collect tax, evading pay- ment, etc. Punishment for. "Person" liable for act s .
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