SIXTY-FIFTH CONGRESS. Sess. III. C11. 18. 1919. 1079 value of the propert at the date of the discove , or within thirty ¤'°°“ '*¤~ days thereafter; such reasonable allowance in dh the above cases to be made under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary. In the case of I¤¤¤· leases the deductions allowed by this paragraph shall be equitably apportioned between the lessor and lessee; (10) In the case of insurance companies, in addition to the above: ,,i.,I§Y'"°"°° °°m"°' (a) The net addition required by law to be made within the taxable ”;'*v*;*}‘\,';*1‘,{**;ltc‘¤ fr year to reserve funds (including in the case of assessment insurance ’ ' companies the actual deposit of sums with State or Territorial oflicers pursuant to law as additions to guarantee or reserve funds); and (b) the sums other than dividends paid within the taxable year on policy and annuity contracts; pawn ,,_ (11) In the case of corporations issuing policies covering life, §;g_f{° ¤¥ health, and accident insurance combined in one polic issued on the N ' weekly premium mpayment plan continuirxilg for life and, not sub'ect to canoe lation, in dition to the above, su portion of the net addition (not re uired by law) made within the taxable year to reserve fimds as the (lilommissioner Bnds to be required for the protection of the holders of such policies only; ,,,,,,,,1 mm, ,0,,, (12) In the case of mutual marine insurance companies, there shall P¤¤*•· be allowed, in addition to the deductions allowed in paragraphs (1) to (10), inclusive, amounts repaid to policyholders on account of pre- m:,2’_""“"‘ "°*""' miums previously paid by them, and interest paid upon such amounts between the ascertainment and the payment thereof; (13) In the case of mutual insurance companies (other than mu- M"' tual life or mutual marine insurance companies) requiring their members to make premium deposits to provide for losses and expenses, there shall be allowed, in addition to the deductions allowed in paragraphs (1) to (10), inclusive, (imless otherwise allowed under such mmmupmum paragraphs) the amount of premium deposits returned to their turnedpolicyholders and the amount of premium deposits retained for the payment of losses, expenses, and reinsurance reserves; ,,0,,, ,,m,,,_ (14) (a) At the time of Bling return for the taxable *year 1918 a tax- g_?1sr¤d¤·;i¤¤¤ er re payer may Ble a claim in abatement based on the act that he has mcs, pd °° M sustained a substantial loss (whether or not actually realized by sale ,,f}“"““ '° "° ‘“°" ‘“ or other disposition) resulting from any material reduction (not due to temporary fluctuation) of the value of the inventory for such taxable year, or from the actual payment after the close of such taxable year of rebates in pursuance o contracts entered into during such B d umd ycar upon sales made during such year. In such case payment of °° °°° ‘ the amount of the tax covered by such claim shall not e required until the claim is decided but the taxpayer shall accompany his claim with a bond in double the amount of the tax covered by the claim, with sureties satisfactory to the Commissioner, conditioned for the payment of any part of such tax found to be due, with interest. If an art of such c aim is disallowed then the remainder of the tax °,,*,;§;f_‘;°“‘°’P”‘d** due slialll on notice and demand bfy the collector be paid bv the taxpayer with interest at the rate 0 1 per centum per month from the H M time the tax would have been due had no such claim been Bled. If du’§m`Z{°“°°s t°b° ` it is shown to the satisfaction of the Commissioner that such substantial loss has been sustained, then in computing the taxes imposed by this title and by Title III the amonmt of such loss shall be deducted Dgdumm M has H from the net income. (b) If no such claim is Bled, but it is shown to memmmsa. the satisfaction of the Commissioner that during the taxable year 1919 the taxpayer has sustained a substantial loss of the character above describe then the amount of such loss shall be deducted from the net income for the taxable year 1918 and the taxes imposed by this tltle and by Title III for such year shall be redetermine accor _- CMR, ,,t,,_, u,m;,,,_ mgly. Any amount foxmd to be due to the taxpayer upon the basis
