Evening star., 1942-10-28

year even though It exceeds the
amount otherwise computed under
Paragraph (A).
CO. In any case in which an en-
ploye establishes that, after resort
ing to his income from all sources,
he is unable. without disposing of
assets at a substantial financial loss
resulting in undue hardship, to meet
payments for the following:
Cd Required payments (exclud-
ing accelerated payments) by the
employe during the taxable year
on any life insurance policies on
his life which were In force on
October 3, 1912,
CD Required payments (exclud-
ing. accelerated payments) made
by the employe during the tax
able year on any fixed obligations
for which he was obligated on
October 3, 1912, ..r
90 Federal income taxes OF the
employe for prior taxable years
which are paid during the taxable
year, not including Federal in
come taxes on the allowance under
paragraph (A) for any prior year,
an additional amount sufficient to
meet such payments may be paid or
authorized to be paid to or accrue to
the account of any employe or re-
celved by him during the taxable
year, even though it exceeds the
amount otherwise computed under
paragraph (A),
CD In the case of an individual
who is an employe of more than
one person, the aggregate of the
salaries received by such individual
shall, under such circumstances as
may be set forth in regulations
promulgated under the authority of
these regulations, be treated as If
paid by single employer.
(E) No amount OF salary shall
be paid or authorized to be paid
to or accrued to the account of
any employe or received by him
after the date of approval of these
regulations by the President and
before January /, 1943, if the total
salary paid, authorized, accrued or
received for the calendar year 1912
exceeds the amount of salary which
would otherwise be allowable under
paragraph (A) of this section and
also exceeds the total salary paid,
authorized, accrued or received for
the calendar year 1941.
CD Except as provided in para
graph (E) of this section, the pro-
visions of this section shall be an
plicable to salary paid or accrued
after December 81, 1912, regardless
OF when authorized and regardless
OF any contract or agreement made
before or after such date.
Section 4010.11. Effect of unlaw-
ful payments.-(A) If any wage or
salary payment is made in contra
vention of the act or the reeula-
t1ons, rulings or orders promul-
gated Hereunder, as determined
by the board or the commissioner,
as the case may be, the entire
amount OF such payment shall be
dlsregarded by the executive de-
partmentS and all other agencies
OF the Government in determining
the costs or expenses of any en-
ployer for the purpose of any law
or regulation, including the Emer-
gency Price Control Act of 1912, or
any maximum price regulation
thereof, or for the purpose of CAL
culatlng deductions under the rev.
enue laws of the United States, or
Tor the purpose of determining costs
or expenses of any contract made
by or on behalf of the United
states. The term "law or regula-
tlons' as used herein includes anv
law or regulation hereafter enacted
or promulgated.
In the case of wages or salaries
decreased in contravention of the
act or regulations, rulings or or
GERS promulgated hereunder, the
amount to be disregarded is the
amount OF the wage or salary paid
or accrued. In the case of wages or
salaries increased in contraven.
ton OF the act or regulations, rul-
lngs or orders promulgated there
under, the amount to be disre-
garded is the amount of the wage
or salary paid or accrued and not
merely an amount representing an
increase in such wage or salary.
IN the case of a salary in excess
OF the amount allowable under sec
tlon 4O1O.10 of these regulations
which is paid or accrued to an
employe during his taxable year
IN contravention of the act or reg
ulatlons, rulings or orders prom,ll-
gated hereunder, the amount to be
olsregarded Is the full amount of
such salary and not merely the
amount representing the excess over
the amount allowable under such
section 401010.
Penalty Provisions.
(B) Payments made or received
IN violation of any regulations
rulings or orders promulgated under
the authority of the act are subject
to the penal provisions of the act
Section 40l0.12. Exempt emplov-
ers-The provisions of sections
40l0.7, 4010.8 and 40109 of these
regulations shall apply only in the
case OF an employer who employs
more than eight individuals.
Section 4010.13. Salary allowances
under Internal Revenue Code-No
provision of these regulations shall
preclude the commissioner from dis
allowing as deduction in COM
putting Federal income tax any com.
pensation paid by an employer Gre
gardless of the number of emploves
and OF the amount paid to any
employe) in excess of a reasonable
allowance" in accordance with the
provisions of section % (A) of the
code.
Section 4olo.14. Statutory salaries
and wages-These regulations shall
be applicable to any salary or wages
paid by the United States, any State
Territory or possession, or political
subdivision thereof, the District of
Columbia, or any agency or instru-
mentality of any one or more of
the foregoing, except where the
amount of such salary or wages is
fixed by statute.
Sec. 4010.15. Territories and Pos
cncciNrc