PUBLIC LAWS-CH. 120 -JUNE 9, 1943 year 1943 (so determined) or the excess of such tax (so deter- mined) over $50, whichever is the lesser. Such amount shall in no case exceed 25 per centum of the tax for the taxable year 1942 (determined without regard to this section and without regard to interest and additions to such tax) or the excess of such tax (so determined) over $50, whichever is the lesser. This subsection shall not apply in any case in which the taxpayer is convicted of any criminal offense with respect to the tax for the taxable year 1942 or in which additions to the tax for such taxable year are applicable by reason of fraud. An individual who becomes subject to tax for the taxable year 1943 under this subsection shall 53 Stat 2 be an individual required to make a return for the taxable year 1943 26u.S.C. 51; under section 51 of the Internal Revenue Code. Supp. I, 51. (c) ADDITIONAL INCREASE IN 1943 TAX WHERE INCREASED INCOME.- (1) TAX FOR 1942 NOT GREATER THAN THAT FOR 1943.- In the case of a taxpayer whose liability for the tax for the taxable year 1942 is discharged under subsection (a), and whose surtax net income for the base year plus $20,000 is less than that for the 26 Ut .s. § 1-396 taxable year 1942, the tax imposed by Chapter 1 of the Internal Supp. II, § 3-476 . Revenue Code for the taxable year 1943 shall be increased by the Ante, pp. 139-144; post, pp. 149, 584,602. excess of 75 per centum of the tax imposed by such chapter for the taxable year 1942 (determined without regard to this section and without regard to interest and additions to the tax) over a tentative tax computed as if the portion of the surtax net income for the taxable year 1942 which is not greater than the sum of the surtax net income for the base year plus $20,000 constituted both the surtax net income for the taxable year 1942, and the net income for such taxable year after allowance of all credits against net income; (2) TAX FOR 1942 GREATER THAN THAT FOR 1943.-In the case of a taxpayer whose liability for the tax for the taxable year 1942 is discharged under subsection (b) and whose surtax net income for the base year plus $20,000 is less than that for the 26 1 tat. 4. 3 taxable year 1943, the tax imposed by Chapter 1 of the Internal 26 u.s.C . 13 y t-hd; Supp. I, §§ 3-476 . Revenue Code for the taxable year 1943 shall be increased by Ante, pp. 139 -144; pos. pp. 149,584, 602. the excess of 75 per centum of the tax imposed by such chapter for the taxable year 1943 (determined without regard to this section and without regard to interest and additions to the tax) over a tentative tax for the taxable year 1943 computed as if the portion of the surtax net income for such taxable year which is not greater than the sum of the surtax net income for the base year plus $20,000 constituted both the surtax net income for the taxable year 1943, and the net income for such taxable year after allowance of all credits against net income. For the purposes of this subsection "base year" means any one of the taxable years 1937, 1938, 1939, or 1940, to be selected by the taxpayer. (d) RuLEs FOR APPLICATION OF SUBSECTIONS (A), (B), AND (C).- (1) APPLICATION OF SUBSECTION (B) TO MEMBERS OF ARMED FORCES.- If the taxpayer is in active service in the military or naval forces of the United States or any of the other United Nations at any time during the taxable year 1942 or 1943, the increase in the tax for the taxable year 1943 under subsection (b) (1) shall be reduced by an amount equal to the amount by which the tax for the taxable year 1942 (determined without regard to this section) is increased by reason of the inclusion in the net s3tat. 1 . income for the taxable year 1942 of the amount of the earned net (4) .income (as defined in section 25 (a) (4)). 146 [57 STAT.
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