Page:United States Statutes at Large Volume 54 Part 1.djvu/1025

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54 STAT.] 76TH CONG., 3D SESS.-CH. 757-OCT. 8 , 1940 to such mining in the United States shall be exempt from the tax imposed by this subchapter. The tax on the remaining portion of such adjusted excess profits net income shall be an amount which bears the same ratio to the tax computed without regard to this sec- tion as such remaining portion bears to the entire adjusted excess profits net income. "Part II-Rules in Connection With Certain Exchanges "Supplement A-Excess Profits Credit Based on Income "SEC. 740. DEFINITIONS. "For the purposes of this Supplement- "(a) ACQUIRING CORPORATION.- T he term 'acquiring corporation' means- "(1) A corporation which has acquired- "(A) substantially all the properties of another corpora- tion and the whole or a part of the consideration for the transfer of such properties is the transfer to such other corporation of all the stock of all classes (except qualifying shares) of the corporation which has acquired such proper- ties, or "(B) substantially all the properties of another corpora- tion and the sole consideration for the transfer of such prop- erties is the transfer to such other corporation of voting stock of the corporation which has acquired such properties, or "(C) before October 1, 1940, properties of another corpo- ration solely as paid-in surplus or a contribution to capital in respect of voting stock owned by such other corporation. For the purposes of subparagraphs (B) and (C) in determin- ing whether such voting stock or such paid-in surplus or con- tribution to capital is the sole consideration, the assumption by the acquiring corporation of a liability of the other, or the fact that property acquired is subject to a liability, shall be disre- garded. Subparagraph (B) or (C) shall apply only if the corporation transferring such properties is forthwith completely liquidated in pursuance of the plan under which the acquisition is made, and the transaction of which the acquisition is a part has the effect of a statutory merger or consolidation. "(2) A corporation which has acquired property from another corporation in a transaction with respect to which gain or loss was not recognized under section 112 (b) (6) of Chapter 1 or a cor- responding provision of a prior revenue law; "(3) A corporation the result of a statutory merger of two or more corporations; or "(4) A corporation the result of a statutory consolidation of two or more corporations. "(b) COMPONENT CORPORATION.- T he term 'component corporation' means- "(1) In the case of a transaction described in subsection (a) (1), the corporation which transferred the assets; "(2) In the case of a transaction described in subsection (a) (2), the corporation the property of which was acquired; "(3) In the case of a statutory merger, all corporations merged, except the corporation resulting from the merger; or "(4) In the case of a statutory consolidation, all corporations consolidated, except the corporation resulting from the consoli- dation. "Acquiring corpora- tion. " 53 Stat. 38 . 26 U. S. C., Supp. V, 112 (b) (6). "Component cor- poration."