Page:United States Statutes at Large Volume 54 Part 1.djvu/1142

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PUBLIC LAWS-CHS. 849, 850-OCT. 10, 1940 Collection of certain tax deficiencies. Provso. Interest. Applicability to sales or loss indemni- fications. When vessel deemed constructed or ac- quired. Meaning of terms. 53 Stat. 4. 26U. S.C., Supp.V, ch. 1. October 10, 1940 [H. R. 9734] [Public, No. 8411 Saco Divide unit, Milk River project, Mont. Allocation of funds for construction. 53 Stat. 719 . Repayment. Fresno Dam and Reservoir. Repayment in an- nual installments. centum of completion within the period provided, or with respect to which the Commission finds and certifies to the Secretary of the Treas- ury that, for causes within the control of the taxpayer, the entire construction is not completed with reasonable dispatch, if otherwise taxable income under the law applicable to the taxable year in which such gain was realized, shall be included in the gross income for such taxable year, except for the purpose of the declared value excess-profits tax and the capital stock tax. If any such deposited gain or portion thereof is so included in gross income for such taxable year, there shall (in addition to any other deficiency) be assessed, collected, and paid in the same manner as if it were a deficiency, an amount equal to 1.1 per centum of the amount of gain so included, such amount being in lieu of any adjustment with respect to the declared value excess-profits tax for such taxable year. "(j) Notwithstanding any other provision of law, any deficiency in tax for any taxable year resulting from the inclusion of any amount in gross income as provided by subsection (i), and the amount to be treated as a deficiency under such subsection in lieu of any adjust- ment with respect to the declared value excess-profits tax, may be assessed or a proceeding in court for the collection thereof may be begun without assessment, at any time: Provided, however That interest on any such deficiency or amount to be treated as a deficiency shall not begin until the date the deposited gain or portion thereof in question is required under subsection (i) to be included in gross income. "(k) This section shall be applicable to a taxpayer only in respect of sales or indemnifications for losses occurring within a taxable year beginning after December 31, 1939, and only in respect of earnings derived during a taxable year beginning after December 31, 1939. "(1) For the purposes of this section a vessel shall be considered as constructed or acquired by the taxpayer if constructed or acquired by a corporation at a time when the taxpayer owns at least 95 per centum of the total number of shares of each class of stock of the corporation. "(m) The terms used in this section shall have the same meaning as in chapter 1 of the Internal Revenue Code." Approved, October 10, 1940. [CHAPTER 8501 AN ACT Authorizing allocation of funds for the construction of Saco Divide unit, Milk River project, and for other purposes. Be it enacted by the Senate and HoJuse of Representatives of the United States of America in Congress assembled, That in connection with the Saco Divide unit of the Milk River project there shall be included in the water users repayment obligations, in addition to the amounts that may be allocated by the President for the construction of pumping and distribution facilities and land development of this unit from funds appropriated for water conservation and utility projects by the Interior Department Appropriation Act, 1940, to be repaid as therein provided, that portion of the cost of the facilities of the Milk River project common to the Saco Divide unit and other units of the Milk River project that may be allocated to the Saco Divide unit by the Secretary of the Interior. The costs of Fresno Dam and Reservoir so allocated by the Secretary shall be included for repayment in not to exceed forty annual installments along with the costs of pumping and distribution facilities allocated by the 1108 [54 STAT.