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Page:United States Statutes at Large Volume 61 Part 1.djvu/373

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349 61 STAT.] 80Tr: CONG. , 1ST SESS.-CH. 258-JULY 16, 1947 of the trust for which the trust is not exempt under subsection (a) of this section shall be included in the gross income of an employee for the taxable year in which the contribution is made to the trust in the case of an employee whose beneficial interest in such contribution is nonforfeitable at the time the contribution is made. TITLE X--PURPOSE OF ARTICLE AND ALLOCATION AND APPORTIONMENT SEC. 1. PURPOSE OF ARTICLE.- It is the purpose of this article to impose (1) an income tax upon the entire net income of every resident and every resident estate and trust, and (2) a franchise tax upon every corporation and unincorporated business for the privilege of carrying on or engaging in any trade or business within the District and of receiving such other income as is derived from sources within the District: Provided,'however,That, in the case of any corporation, the Dividends from a amount received as dividends from a corporation which is subject to corpoation taxation under this article, and, in the case of a corporation not engaged in carrying on any trade or business within the District, interest received by it from a corporation which is subject to taxation under this article shall not be considered as income from sources within the District for the purposes of this article. The measure of the fran- Frachise tax. chise tax shall be that portion of the net income of the corporation and unincorporated business as is fairly attributable to any trade or busi- ness carried on or engaged in within the District and such other net income as is derived from sources within the District. SEc. 2. ALLOCATION AND APPORTIONMENT.-The entire net income of iNt iDncomederited any corporation or unincorporated business, derived from any trade or business carried on or engaged in wholly within the District shall, for the purposes of this article, be deemed to be from sources within the District, and shall, along with other income from sources within the District, be allocated to the District. If the trade or business of any corporation or unincorporated business is carried on or engaged in both within and without the District, the net income derived there- from shall, for the purposes of this article, be deemed to be income from sources within and without the District. Where the net income of a corporation or unincorporated business is derived from sources both within and without the District, the portion thereof subject to tax under this article shall be determined under regulation or regula- tions prescribed by the Commissioners. The Assessor is authorized to employ any formula or formulas provided in any regulation or regu- lations prescribed by the Commissioners under this article which, in his opinion, should be applied in order to properly determine the net income of any corporation or unincorporated business subject to tax under this article. SEC. 3. ALLOCATION OF INCOME AND DEDUCTIONS BETWEEN OROAANM- ZATIONS, AND So FORTH. -In any of two or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the District, and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Assessor is authorized to distribute, apportion, or allocate gross income or deductions between or among such organizations, trades, or businesses, whenever in his opinion such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. The provisions of this mpplicability bt section shall apply, but shall not be limited in application to any case rilroad. of a common carrier by railroad subject to the Interstate Commerce 49 US . C. i 1-27 Act and jointly owned or controlled directly or indirectly by two or 301o; -oa.1ooit- more common carriers by railroad subject to said Act.