SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 275 (b) As used in this title the term "invested ca ital" do not "·“‘”"’ ”°‘” include borrowed capital. P cs Bogzowzsaziinna (c) Thtere sléill befdedupltetd) frlom invested capiltlalhas above dehned ‘”°‘“‘*°"· a percen_ e ereo_ e u the percent e w `c the amount of ?°°f°°°*“¤° °‘ *¤°d· madmissilfilie assets is di the amoimt of adiingissible and inadmissible iiiizieii? mm der assets held the taxable year. _ (d) The invested capital for any period shall be the average 8§Q,i§°";’*!;';g{g*_; mvested capital for such period, but m the case of a co ration mn. g° making a return for a fractional part of a year, it shall belthz same fractional part of such average invested capital. Sec. 327. That in the following cases the tax shall be determined si;ii§$(i»u;i;¤$l°r°g° as provided in section 328: _ a) Where the Commissioner is unable to determine the invested m}rfd$€Z;is¤l.°l1¤d?°°it°] capital as provided in section 326; _ (b) In the case of a foreign corporation or of a corporation entitled .,;°r°'°°°°°"’°’°°‘°"S* to glievlaplpefits of secfion 262; f c ere a mixe aggregate o tangible roperty and intan ible .‘§h°'°p'°P°“YP“d gxgopertyhas been paid in for stock or for sgock and bonds ana? the M mckmmpmbm mmissioner is unable satisfactorily to determine the respective values of the several classes of property at the time of pa ent, or to distinguish the classes of property paid in for stock and iyolii bonds, “”&’5°`$%'§1’; 1- · b h · hc., ·· ¤»·»·· · ere upon a 1cation the co oration the mmissioner V ,, WP °‘%‘°” ° finds and so declareglof record {hat theriiax if determined without =i·lii¤¤i¤igla¤i¤(i=S€hiii¤i:=¤°iu benefit of this section would, owing to abnormal conditions affecting the capital or income of the corporation, work upon the corporation an exceptional hardship evidenced by gross disproportion etween the tax computed without benefit of this section and the tax computed by re erence to the representative corporations specified in _ section 328. This subdivision shall not apply to any case (1) in §{g°§P“,,‘§’,;,,,gS 0,, which the tax (computed without benefit of this section) is high ¤¤¤‘¤¤¤1<=¤x>i¢¤¤- merely because the corporation earned within the taxable {par a high rate of profit upon a normal invested capital, nor (2) in w `ch 50 er ,_,{,§°§‘;*§af,‘,g°{j,‘¤,i,°j;§j centum or more of the gross income of the corporation for the taxable www. Mcyear (computed under section 233 of Title II) consists of gains, profits, commissions, or other income, derived on a costlplus asis rom a Government contract or contracts made between pri]. 6, 1917, and Ncévember lr, #911%, both (gates inclusiveh d 7 h D t mm u it Ec. 328. a at in the cases s i e in section 32 the tax, °° ° °“° °’§ shall be the amount which bears the me ratio to the net income of §<i’n(i%iiii¤`i2zv;ii¤i]¤i»i· the taxpayer (in excess of the specific exemption of $3,000) for the M °°°' taxable year, as the average tax of representative corporations engaged in a like or similar trade or busmess, bears to their average net income (in excess of the specific exemption of $3,000) for such year. In the case of a foreign cor oration or of a corporation entitled ,,§`,,‘;f1§§{,f “"P°’°‘ to the benefits of section 262 tile tax shall be computed without deducting the specific exemption of $3,000 either for the taxpayer or the representative corporations. _ _ Method ofmpm In comgpting the tax under this section the Commissioner shall mm. compare the taxpayer only with representative corporations whose invested capital can be satisfactorily determined under section 326 and which are, as nearly as may be, similarly circumstanced with respect to gross income, net income, profits per unit of business transacted and capital employed, the amount and rate of war profits or excess profits, and all other relevant facts and circumstances. _ (b) For the urposes of subdivision (a) the ratios between the mi%°e3°riyi°sgi'i1°aii§i1ii' average tax ang the average net income of representative corporations shall be determined by the Commissioner in accordance with regulations prescribed by him with the approval of the Secretary.
