74Tii C ONGRESS . SESS . II. CH. 690 . JUN E 22, 1936 . .
169 7 (c) ADJUSTMENTS ON PAYMENT OF ACCRUED TAXES.-If accrued Adjustment on pay - taxes when paid differ from the amounts claimed as credits by the me nt of accrued taxes . taxpayer, or if any tax paid is refunded in whole or in part, the taxpayer shall notify the Commissioner, who shall redetermine the Redetermination . amount of the tax for the year or years affected, and the amount of tax due upon such redetermination, if any, shall be paid by the tax- payer upon notice and demand by the collector, or the amount of tax over paid, if any, shall be credi ted or re funded to the taxp ayer in P ost, p. 1731 . accordance with the provisions of section 322 . In the case of such a Tax accrued but un- tax accrued but not paid, the Commissioner as a condition precedent p aid . to the allow ance of t his credi t may requ ire the t axpayer t o give a Bond. bond with sureties satisfactory to and to he approved by the Commis- sioner in such stun as the Commissioner may require, conditioned upon the payment by the taxpayer of any amount of tax found due upon any such redetermination ; and the bond herein prescribed shall contai n such fur ther cond itions as the Comm issioner may requi re . (d) YEA R IN WHIC H CREDIT TA KEN .-The cre dits prov ided for i n Credits for foreign taxes may be taken in this s ection m ay, at t he optio n of the taxpayer and irr espectiv e of the year aeer ned . method of accounting employed in keeping his books, be taken in the ye ar in wh ich the taxes of the for eign coun try or t he posse ssion of the United States accrued, subject, however, to the conditions pre- scribed in subsection (c) of this section . If the taxpayer elects to Cr edits on same basis take s uch cred its in t he year in which the taxe s of the foreign country for subse quent years. or the possession of the United States accrued, the credits for all subsequent years shall be taken upon the same basis, and no portion of any such taxes shall be allowed as a deduction in the same or any suc ceed ing year . (e) PROOF OF CREDITS .-The credits provided in this section shall Proof of credits . be allowed only if the taxpayer establishes to the satisfaction of Evidence of foreign incom e . the Comm issio ner (1) the total amo unt of income derived fro m sources without the United States, determined as provided in section 119, (2) the amount of income derived from each country, the tax Se gre gati on of paid or accrued to which is claimed as a credit under this section, amounts . such amount to be determined under rules and regulations prescribed by the Commissioner with the approval of the Secretary, and (3) Other information . all other information necessary for the verification and computation of such credits . (f) TAXES OF FOREIGN StmsiDIARY.-For the purposes of this si dxe of foreign sub- section a domestic corporation which owns a majority of the voting Proportion of foreign stock of a foreign corporation from which it receives dividends in c ta eixv edon dividends have to hae any taxable year shall be deemed to have paid the same proportion be en paid . of any income, war-profits, or excess-profits taxes paid by such foreign corporation to any foreign country or to any possession of the United States, upon or with respect to the accumulated profits of such foreign corporation from which such dividends were paid, which the amount of such dividends bears to the amount of such accumulated profits : Provided, That the amount of tax deemed to
,m,tooo credit at . have been paid under this subsection shall in no case exceed the lowed . same proportion of the tax against which credit is taken which the amount of such dividends bears to the amount of the entire net income of the domestic corporation in which such dividends are in cluded. The term "accumulated profits" when used in this sub-
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"Accumulated pro f- section in reference to a foreign corporation, means the amount of its gains, profits, or income in excess of the income, war-profits, and excess-profits taxes imposed upon or with respect to such profits or in com e ; an d the Com missioner with the approval of the Se cretary Determination of, by Commissioner . shall have full power to determine from the accumulated profits of what year or years such dividends were paid ; treating dividends paid in the first sixty days of any year as having been paid from 104 019• -36 107
