Page:United States Statutes at Large Volume 54 Part 1.djvu/1024

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PUBLIC LAWS-CH. 757-OCT. 8, 1940 Computation and payment of tax. Ante, p. 975. Definition of "affili- ated group. " "Stock." Definition of "in- cludible corporation. " 42 Stat. 849 . 15 U.S. C.a. 141- 162; Supp. V, if 142- 160. 63 Stat. 79 . 26 U. S. C., Supp. V, § 251. 53 Stat. 71, 72,74. 26 U. S. C., Supp. V, §§201, 204 , 207. Includibleinsurance companies. 63 Stat. 4. 26 U. S. C., Supp. V,ch.1. Subsidiary formed to comply with foreign law. Suspension of run- nlng of statute of limi- tations. 53 Stat. 82. 26 U. S. C., Supp. V, 272(a). 53 Stat. 87. 26 U.S. C., Supp. V, 277. Tax eemptions. "(c) COMPUTATION AND PAYMENT OF TAx. -In any case in which a consolidated return is made the tax shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under subsection (b) prescribed prior to the last day prescribed by law for the filing of such return. Only one specific exemption of $5,000 provided in section 710 (b) (1) shall be allowed for the entire affiliated group of corporations. "(d) DEFINITION OF 'AFFILIATED GROuP'.- As used in this section, an 'affiliated group' means one or more chains of includible corpora- tions connected through stock ownership with a common parent cor- poration which is an includible corporation if- "(1) At least 95 per centum of each class of the stock of each of the includible corporations (except the common parent cor- poration) is owned directly by one or more of the other includi- ble corporations; and "(2) The common parent corporation owns directly at least 95 per centum of each class of the stock of at least one of the other includible corporations. As used in this subsection, the term 'stock' does not include nonvoting stock which is limited and preferred as to dividends. "(e) DEFINITION OF 'INCLUDIBLE CORPORATION'.-As used in this section, the term 'includible corporation' means any corporation except- '(1) Corporations exempt from the tax imposed by this subchapter. "(2) Foreign corporations. "(3) Corporations organized under the China Trade Act, 1922. "(4) Corporations entitled to the benefits of section 251, by reason of receiving a large percentage of their income from pos- sessions of the United States. "(5) Personal service corporations. "(6) Insurance companies subject to taxation under section 201, 204, or 207. "(f) INCLUDIBLE INSURANCE CoMPANIES. -Despite the provisions of paragraph (6) of subsection (e), two or more domestic insurance companies each of which is subject to taxation under the same section of Chapter 1 shall be considered as includible corporations for the purpose of the application of subsection (d) to such insurance com- panies alone. "(g) SUBSIDIARY FORMED TO COMPLY WITH FOREIGN LAw. -In the case of a domestic corporation owning or controlling, directly or indirectly, 100 per centum of the capitaFstock (exclusive of directors' qualifying shares) of a corporation organized under the laws of a contiguous foreign country and maintained solely for the purpose of complying with the laws of such country as to title and operation of property, such foreign corporation may, at the option of the domestic corporation, be treated for the purpose of this subchapter as a domestic corporation. "(h) SUSPENSION OF RUNNING OF STATUTE OF LIMrrATIONS.-I f a notice under section 272 (a) in respect of a deficiency for any taxable year is mailed to a corporation, the suspension of the running of the statute of limitations, provided in section 277, shall apply in the case of corporations with which such corporation made a consolidated return for such taxable year. "SEC. 731. CORPORATIONS ENGAGED IN MINING OF STRATEGIC METALS. "In the case of any domestic corporation engaged in the mining of tungsten, quicksilver, manganese, platinum, antimony, chromite, or tin, the portion of the adjusted excess profits net income attributable 990 [54 STAT.