Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-10-17

year WHICH Iue average uinouut VI tii0
annual net income Of the trade or
business during the prewar period was
Of tho invested capital for the pre-
war period (but not less than or
moro than . per centum of the In
vested capital for the taxable year),
and (2) $1,000;
(c) In the case OF a foreign corpora
ton or partnership. or OF non-resi-
dent alien individual. an amount as
certained in the same manner as
provided In subdivisions (a) and (b)
without any exemption Of $4,000 or
$4,000:
(d) II the secretary OF the treasury
is unable to satisfactorily deter
mine the average amount of the an
nual net income OF the trade or busi-
ness during the prewar period. the de-
duction shall be determined in the
same manner as provided in section
205.
Section 204 That IL corporation
or partnership was not in existence,
or an individual was not engaged in
the trade or business, during the
whole Of any one calendar year dur
ing the prewar period, the deduction
shall be an amount equal to per
centum OF the invested capital for
the taxable year: plus in the case Of
a domestic corporation $4,000, and in
the case of a domestic partnership or
n citizen or resident of the United
States $4,000.
A trade or business carried on by
a corporation, partnership. or indi-
vidual, although formally organized or
rcorganizcd on or after January ..
1913, which is substantially n continu-
alton OF n trade or business carried on
prior to that date shall. for the pur-
pose OF this title be deemed TO have
been in existence prior to that date.
and the net income and invested capt
tai of its predecessor prior to that
, date shall be deemed to have been its
net income and invested capital.
Section 2O5. (a) That If the secre-
tary OF the treasury. upon complaint
finds either G) that during the pre-
war period a domestic corporation or
partnership. or citizen or resident
of the United States had no net In
come from the trade or -busienss. or
CD that during the prewar period the
percentage, which the net income was
Of the invested capital, was low as
compared with the percentage, which
the net income during such period
of representative corporations, part
nershipsr and individuals, engaged in
like or similar trade or business,
was of their invested capital then the
deduction shall be the sum Of G) an
amount equal to the same percentage
OF its invested capital for the taxable
year which the average deduction (de-
termined in the same manner as pro-
vided in section 203, without including
the $4,000 or $4,000 therein referred
to- for such year of representative
corporations. partnerships. or individ
uals, engaged i'm a like or similar trade
or business. is of their average in
vested capital for such year plus (2)
In the case of n domestic corporation
$4,000, and I'm the case of a domestic
partnership or a citizen or resident Of
the United States $4,000.
The percentage which the net In
come was of the invested capital in
each trade or business shall he de-
termined by the commissioner Of In
| ternal revenue, in accordance with
regulations prescribed by him, with
the approval of the secretary of the
treasury In the case of a corpora
ton or partnership which has fixed
its own fiscal year, the percentage de-
| termined by the calendar year ending
during such fiscal year shall be used.
OBJ The tax shall be assessed upon
the basis of the deduction deter
mined as provided in section 203. but
the taxpayer claiming the benefit of
this section may at the time of max
ing the return file a claim for abate-
ment of the amount by,which the tax
so assessed exceeds a tax computed
upon the basis of the deduction deter
mined as provided in this section. In
such event, collection of the part OF
! the tax covered by such claim for
| abatement shall not be made until the
claim is decided. but If in the judg-
ment of the commissioner of internal
revenue, the interests of the United
States would be jeopardized thereby he
may require the claimant to give a
bond in such amount and with such
sureties as the commissioner may
think wise to safeguard such interests.
conditioned for the payment of any
tax found to be due with the interest
/ thereon, and IL such bond, satsfac-
tory to the commissioner, is not given
within such time as he prescribes, the
full amount of tax assessed shall be
collected and the amount overpaid, II
any, shall upon final decision OF the
application be refunded as "a tax err
roneously or Illegally collected.
Section 206 That for the purpose
| of this title the net income of a
corporation shall be ascertained and
returned (a) for the calendar years
1911 and 1912 upon the same basis
and in the same manner as provided
in section 3S of the act entitled AN
act to provide revenue. equalize duties
and encourage the industries of the
United States, and for other purposes" "
approved August 8, 1909, except that
income taxes paid by it within the
year imposed by the authority OF the
United States shall be included; (b)
for the calendar year 1913 upon the
same basis and in the same manner
as provided in section of the act
entitled "An act to reduce tariff du-
ties and to provide reyenue for the
government and for other purposes,
approved October 3, 1913, except that
income taxes paid by it within the
year imposed by he-authority Of the
United states shall be included. and
except that the amounts received by
1t as dividends upon the stock or from
the net earnings of other corporations
Jolntstock companies or associations
or insurance companies, subject to the
tax imposed by section of such ACT
of october 3, 1913, shall be deducted
and (c) for the taxable year upon the
same basis and in the same manner
as provided in title / of the act en-.
titled IAN act to increase the revenue
and for other purDOseS." auDrOVed