Page:United States Statutes at Large Volume 47 Part 1.djvu/251

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72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932 .

227 ti tle, and the amount of inter est allow ed as a c redit und er sectio n Ante p . 185 "x 26; (9) A reasonable allowance for the exhaustion, wear and tear prElxhaustion, etc ., of of property , as provi ded in se ction 23 (k) . (d) DEDUCTIONS OF FO RE IGN CORPORATIONS .-In the case of a for- Deductions allowed for eign corpo ratio ns fo r eign corporation the deductions allowed in this section shall be United states business . allowed to the extent provided in Supplement I .

Post, p.229. (e) DOUBLE DEDUCTIONs .-Nothing in this section shall be Con- hibited .~h°°s pro - (e) to permit the same item to be twice deducted . SEC. 205. NET L OSSES .

Net losses. The benefit of the s esial deduction for net losses allowed b

Allowance of special li

y deductions for . section 117 sh all be allowed to insurance com panies subject t o the Ante, pp .207,223,225 . tax imposed by section 201 or 204, under regu lations prescrib ed by the Commission er with the app roval of the Sec retary . SEC. 206 . TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF Fore ign ta xes . UNI TED STATES. The amount of income war-profits, and excess-profits taxes im- Credit for, allowed posed by foreign countries or pssessins of the United States shall companies . insuranc e be allowed as a credit against the tax of a domestic insurance cone- Ante, pp . 223, 225, pany subject to the tax imposed by section 201 or 204, to the extent provided in th e case of a dom estic corporatio n in section 131 , and Ante, p. 211 . in such cases " net income " as used in that section means the net income as d efined in this S upplement . SEC. 207. COMPUTATI ON OF GR OSS INCOM E .

Gros s income . The gross income of insurance companies subject to the tax imposed Computation. 225 by section 201 or 204 shall not be determined in the manner provided in section 119 . SEC. 208. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE .

Mutual insurance companies other than (a) APPLICATION OF TITLE .-Mutual insurance companies, other life- Taxable

other than life insurance companies, shall be taxable in the same manner corporations, as oth er corpora tions, ex cept as h ereinafte r provide d in this section . (b) G ROSS INCOME.-Mutual marine-insurance companies shall (boss inc ome, in- eludes premiums less include in gross income the gross premiums collected and received reinsurance. b y them less amoun ts paid for rein surance . (c) DEDIICTIONs.-In addition to the deductions allowed to corpo- do Additional deduc- rations by section 23 the following deductions to insurance coo- Ante, p . 179. panies shall als o be allo wed, unle ss otherw ise allow ed- (1) MUTUAL INSURANCE COMPANIES OTHER THAN LIFE

Mutual insurance INSUR- companies . A NC E . In the case of mutual insura nce companies ot her than life insurance companies- (A) the net addition required by law to be made within the 1 Addition to reserve taxable year to reserve funds (including in the case of assess- ment insurance compa nies the actual deposit of sums with State o r Territo rial offi cers purs uant to l aw as add itions to guarante e or reserve funds) ; and (B) the sums other than dividends paid within the taxable co Policy n tracts, and a nnuity year on policy and annuity contracts .

Mutual marine in- (2) M UTUAL MARINE INSUR ANCE CO MPANIE S .-In the case _of surance companies . mutual marine insurance compan ies, in additio n to the deducti ons Repayments to pou- allowed in paragraph (1) of thi s subsection, unless otherwise cyholdera. allowed, amounts repaid to policyholders on account of pr e- miums previously paid by them, and interest paid upon such amounts between the ascertainment and the payment thereof ; Companies other (3) MUTUAL INSURANCE COMPANIES OTHER TH AN LI FE AND than l, to and marine . MARINE .-In the case of mutual insurance companies (including tnP Prre iumdeposttsro- interinsurers and reciprocal underwriters, but not inc ludi ng mutual life or mutual marine insurance companies) requiring