Page:United States Statutes at Large Volume 53 Part 1.djvu/685

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CLXXX CODIFICATION OF INTERNAL REVENUE LAWS the Revenue Act of 1934, and not inconsistent with this section, shall be applica- ble with respect to the assessment, collection, or payment of excess profits to the Treasury as provided by this section, and to refunds by the Treasury of over- payments of excess profits into the Treasury: And provided further, That this section shall not apply to contracts or subcontracts for scientific equipment used for communication, target detection, navigation, and fire control as may be so designated by the Secretary of the Navy, and the Secretary of the Navy shall report annually to the Congress the names of such contractors and sub- contractors affected by this provision, together with the applicable contracts and the amounts thereof: And provided further, That the income-taxable years shall be such taxable years beginning after December 31, 1935, except that the above provisos relating to the assessment, collection, payment, or refunding of excess profit to or by the Treasury shall be retroactive to March 27, 1934. (c) To make no subdivisions of any contract or subcontract for the same article or articles for the purpose of evading the provisions of this Act, but any subdivision of any contract or subcontract involving an amount in excess of $10,000 shall be subject to the conditions herein prescribed. (d) That the manufacturing spaces and books of its own plant, affiliates, and subdivisions shall at all times be subject to inspection and audit by any person designated by the Secretary of the Navy, the Secretary of the Treasury, and/or by a duly authorized committee of Congress. (e) To make no subcontract unless the subcontractor agrees to the foregoing conditions. The report shall be in form prescribed by the Secretary of the Navy, and shall state the total contract price, the cost of performing the contract, the net income, and the per centum such net income bears to the contract price. A copy of such report shall be transmitted to the Secretary of the Treasury for con- sideration in connection with the Federal income tax returns of the contractor for the taxable year or years concerned. The method of ascertaining the amount of excess profit to be paid into the Treasury shall be determined by the Secretary of the Treasury in agreement with the Secretary of the Navy and made available to the public. The method initially fixed upon shall be so determined on or before June 30, 1934: Provided, That in any case where an excess profit may be found to be owing to the United States in consequence hereof, the Secretary of the Treasury shall allow credit for any Federal income taxes paid or remaining to be paid upon the amount of such excess profit. The contract or subcontracts referred to herein are limited to those where the award exceeds $10,000. (Mar. 27, 1934, c. 95, § 3, 48 Stat. 505, amended June 25, 1936, c. 812, 49 Stat. 1927.) (U. S. C., Title 34, § 496.) TITLE 38-PENSIONS, BONUSES, AND VETERANS' RELIEF PAYMENTS TO BENEFICIARIES Payments of benefits due or to become due shall not be assignable, and such payments made to, or on account of, a beneficiary under any of the laws relating to veterans shall be exempt from taxation, shall be exempt from the claims of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. Such provisions shall not attach to claims of the United States arising under such laws nor shall the exemption herein contained as to taxation extend to any property purchased in part or wholly out of such payments. Sec- tion 4747 of the Revised Statutes and section 22 of the World War Veterans' Act, 1924, are hereby repealed, and all other Acts inconsistent herewith are hereby modified accordingly. The provisions of this section shall not be con- strued to prohibit the assignment by any person, to whom converted insurance shall be payable under Title III of the World War Veterans' Act, 1924, of his interest in such insurance to any other member of the permitted class of bene- ficiaries. (Aug. 12,1935, c. 510, 1 3, 49 Stat. 609.) (U. S . C., Title 38, 454 (a).) WAR VETERANS COMPENSATION EXEMPT No sum payable under this Act to a veteran or his dependents, or to his estate, or to any beneficiary named under Title V, no adjusted service certificate, and no proceeds of any loan made on such certificate shall be subject to attachment, levy, or seizure under any legal or equitable process, or to National or State taxation, and no deductions on account of any indebtedness of the veteran to the United States shall be made from the adjusted service credit or from any amounts due under this Act. (May 19, 1924, c. 157, § 308, 43 Stat. 125, amended July 3, 1926, c. 751, § 3 (a), 44 Stat. 827.) (U. S. C., Title 38, § 618.) NOTE.-This section is modified by section 3, act of August 12, 1935 (U. S . C., title 38, sec. 454 (a) above.)