54 STAT.] 76rH CONG. , 3D SESS.-CH. 419-JUNE 25, 1940 nor to a resident of, or a corporation organized under the laws of, a contiguous country so long as there is in effect with such country a treaty, ratified prior to August 26, 1937, relating to rates of income tax." SEC. 203. PERSONAL HOLDING COMPANIES. Section 500 of the Internal Revenue Code is amended by inserting "(a) GENERAL RULE. -" before the first paragraph and inserting at the end thereof the following new subsection: "(b) DEFENSE TAX FOR FIVE YEARS. - In the case of every per- sonal holding company, the amount of surtax under this subchapter for any taxable year beginning after December 31, 1939, and before January 1, 1945, shall be 10 per centum greater than the amount of surtax computed without regard to this subsection." SEC. 204. EXCESS-PROFITS TAX. Section 600 of the Internal Revenue Code is amended by inserting "(a) GENERAL RULE.-" before the first paragraph and by inserting at the end of such section the following new subsection: "(b) DEFENSE TAX FOR FIVE YEARS.- In the case of any taxpayer, the amount of tax payable under this section for any income-tax taxable year ending after June 30, 1940, and before July 1, 1945, shall be 10 per centum greater than the amount of tax which would be payable if computed without regard to this subsection." SEC. 205. CAPITAL STOCK TAX. Section 1200 of the Internal Revenue Code is amended by insert- ing at the end thereof the following new subsection: (c) DEFENSE TAX FOR FIVE YEARs. - For the year ending June 30, 1940, and for the four succeeding years ending June 30, the rates provided in subsections (a) and (b) shall be $1.10 in lieu of $1." SEC. 206. ESTATE TAX. 521 53 Stat. 104. 26 U. S. C., Supp. V,§00. General rule. Defense tax. 53 Stat. 111 . 26 U. S. C., Supp. V, 600. General rule. Defense tax. 53 Stat. 169. 26 U. S. C., Supp. V, 1200. Defense tax. Chapter 3 of the Internal Revenue Code is amended by inserting tat. 11 upp. at the end thereof the following new subchapter: v. i800 . "Subchapter C-Defense Tax for Five Years "SEC. 951. DEFENSE TAX FOR FIVE YEARS. "In the case of a decedent dying after the date of the enactment of the Revenue Act of 1940 and before the expiration of five years after such date, the total amount of tax payable under this chapter shall be 10 per centum greater than the amount of tax which would be payable if computed without regard to this section. For the pur- poses of this section, the tax computed without regard to this section shall be such tax after the application of the credits provided for in section 813 and section 936." SEC. 207. GIFT TAX. Section 1001 of the Internal Revenue Code is amended by adding at the end thereof the following new subsection: "(d) DEFENSE TAX FOR 1940-1945. - Despite the provisions of sub- section (a)- "(1) The tax for each of the calendar years 1941 to 1945, both inclusive shall be an amount equal to the excess of- "(A) 110 per centum of a tax, computed in accordance with the Rate Schedule hereinbefore set forth, on the aggregate sum 53 Stat. 144. 26 U. S. C., Supp. V, § 1001. Defense tax for 1940- 1945. Calendar years 1941- 1945. Defense ta
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