The sun., 1919-02-07

vested capital for such year. Provided
further. that any taxpayer who takes
advantage Of this paragraph shall pay
the tax imposed by section 1000 of this
act and by the first subdivision of Sec
ton 407 OF the revenue act of 1916, as
II such taxpayer had been q corporation
on and after January 1, 1918, with a
capital stock having no par value.
II any asset Of the trade or business
in existence both during the taxable year
and any pre-war year Is included in the
invested capital for the taxable ycar
but is not included in the invested capital
for such pre-war year. or is valued on a
different basis In computing the invested
capital for the taxable year and such
pre-war year. respectively, then under
rules and regulations to be prescribed by
the Commissioner with the approval OF
the Secretary such readjustments shall
be made as are necessary to place the
computation OF the invested capital for
such pre-war year on the basis employed
in determining the invested capital for
the taxable year.
Sec. 1871. In the case OF the reorgani-
cation, consolidation, or change of own
ership OF a trade or business. or change
of ownership of property, after March
trade or business or property OF so per
centum or more remains in the same
persons. or any of them, then no asset
transferred or received from the pre-
vious owner SHALL for the purpose OF de-
termining invested capital. be allowed
greater value than would have been al
lowed under this title In computing the
invested capital of such previous owner
" such asset had not been so trans
ferred or received: Provided, That IL
such previous owner was not n corpora
ton, then the value of any asset so
transferred or received shall be taken
at its cost of acquisition Cat the date
when acquired by such previous own
err with proper allowance for deprecia-
ton. impairment. betterment or develop
ment but no addition to the original cost
shall be made for any charge or expen-
diture deducted as expense or otherwise
on or after March /. 1918. in computing
the net income OF such previous owner
for purposes of taxation.
PART VII.-MIsCELLAN
Sec 335. (a) That IL corporation
(other than n personal service corpora
tion) makes return for fiscal year be-
ginning in 1917 and ending in 1918, the
tax for the first taxable year under this
title shall be the sum of: Cd the same
proportion of a tax for the entire period
computed under Title III. OF the Revenue
Act OF 1917 which the portion OF such
period falling within the calendar year
1917 is of the entire period. and (2) the
same proportion of a tax for the entire
period computed under this title at the
rates specified In subdivision ta) of sec
ton 30l which the portion of such per-
Tod falling within the calendar year
1918 is Of the entire period
Any amount heretofore or hereafter
paid on account OF the tax imposed for
such fiscal year by Title H. of the Rev
enue Act of 1917 shall be credited tow
ard the payment OF the tax imposed for
such fiscal year by this title. and IL the
amount SO paid exceeds the amount OF
the tax imposed by this title. the excess
shall be credited or refunded TO the cor
poration in accordance with the pro-
visions of section 252
tb) If a corporation makes return for
fiscal year beg inning In 1919 and end
ing in 1919 the tax for such fiscal year
under this title shall be the sum of: 90
the same proportion of tax for the
entire period computed under subdi-
vision ca OF section 30l which the por-
ton of such period falling within the
calendar year 1918 Is of the entire per-
iod. and (2) the same proportion OF a
tax for the entire period computed I'M
der subdivision CD or co OF section
sol which the portion of such period
falling within the calendar year 1919 is
Of the entire period.
tC) II n partnership or personal
service corporation makes return for "A
hscal year beginning in 1917 and ending
in 1913, 1t shall pay the same proportion
Of tax for the entire period computed
under Title II. Of the Revenue Act OF
1917 which the portion o. such period
falling within TIE calendar year 1917 is
of the entire period
Any tax paid by partnership or per-
sonal service corporation for any period
beginning on or after January /. 1919
shall be Immediately refunded to the
partnership or corporation as a tax err
roneouslv or illegally collected.
Sec. 336. That every corporation. not
exempt under section 30+. shall make a
return for the purposes of this title.
Such returns shall be made. and the
taxes imposed by this title shall be
paid at the same times and places, in
the same manner. and subject to the
same conditions. as is provided in the
case OF returns and payment OF income
tax by corporations for the purposes OF
Title IL, and all the provisions OF that
title not inapplicabe. including penal
ties, are hereby made applicable to the
taxes imposed by this title.
Sec 337. That in the case OF bona
fde sale of mines. oil or gas wells, or
any interest therein. where the principal
value of the property has been demon
strated by prospecting or exploration
and discovery work done by the tax
payer, the portion of the tax imposed by
this title attributable to such sale shall
not exceed 20 per centum OF the selling
price of such property or interest.
Title IX.-Estofe Tax.
SEC. 400. THAT WHEN USED IN
THIS TITLE
The term executor means the exec