Page:United States Statutes at Large Volume 65.djvu/576

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542

^u.liJ'H45(g).

PUBLIC LAW 183—OCT. 20, 1951

[65 STAT.

be the sum of $24,000 plus the amount determined under subparagraph (E) of this paragraph. " (C) If the taxable year is the fourth taxable year of the taxpayer, an amount equal to 11 per centum of the excess profits net income for the taxable year, except that if the excess profits net income exceeds $300,000, the amount shall be the sum of $33,000 plus the amount determined under subparagraph (E) of this paragraph. " (D) I f the taxable year is the fifth taxable year of the taxpayer, an amount equal to 14 per centum of the excess profits net income for the taxable year, except that if the excess profits net income exceeds $300,000, the amount shall be the sum of $42,000 plus the amount determined under subparagraph (E) of this paragraph. " (E) The amount determined under this subparagraph shall be— " (i) if the taxable year ends before April 1, 1951, an amount equal to 15 per centum of the excess of the excess profits net income for the taxable year over $300,000. " (ii) if the taxable year begins on January 1, 1951, and ends on December 31, 1951, an amount equal to iTi/^ per centum of the excess of the excess profits net income for the taxable year over $300,000. "(iii) if the taxable year (other than a taxable year described in clause ( i i)) ends after March 31, 1951, an amount equal to 18 per centum of the excess of the excess profits net income for the taxable year over $300,000. " (2) F I R S T FIVE TAXABLE YEARS.—For the purpose of this subsection— " (A) The taxable year in which the taxpayer commenced business and the first, second, third, and fourth succeeding taxable years shall be considered its first, second, third, fourth, and fifth taxable years, respectively. " (B) The taxpayer shall be considered to have been in existence and to have had taxable years for any period during which it or any corporation described in any clause of this subparagraph was in existence, and the taxpayer shall be considered to have commenced business oti the earliest date on which it or any such corporation commenced business: " (i) Any corporation which during or prior to the taxable year was a party with the taxpayer to a transaction described in section 445(g)(2)(A), (B), o r (C), determined as if the date 'July 1, 1945' were substituted for the date 'December 1, 1950* in section 445(g)(2)(C). "(ii) Any corporation if a group of not more than four persons who control the taxpayer at any time during the taxable year also controlled such corporation at any time during the period beginning twelve months preceding their acquisition of control of the taxpayer and ending with the close of the taxable year; but only if at any time during such period (and while such persons controlled such corporation) such corporation was engaged in a trade or business substantially similar to the trade or business of the taxpayer during the taxable year. For the purpose of this clause, the term 'control' means the ownership of more than 50 per centum of the total combined voting power of all classes of stock entitled to vote, or more than 50 per centum of the total value of shares of all classes of stock. A person shall not be considered a