Page images
PDF
EPUB

sections as extended by said joint resolution, for any year or part thereof ending prior to January first, nineteen hundred and seventeen, and of all other taxes imposed by such Act, or by such Act as so extended, accrued prior to the taking effect of this title, and for the imposition and collection of all penalties or forfeitures which have accrued or may accrue in relation to any of such taxes.

Allowance for or redemption of stamps. Sec. 411. That the Commissioner of Internal Revenue, subject to regulation prescribed by the Secretary of the Treasury, may make allowance for or redeem stamps, issued, under authority of the Act approved October twenty-second, nineteen hundred and fourteen, entitled “An Act to increase the internal revenue, and for other purposes," and the joint resolution approved December seventeenth, nineteen hundred and fifteen, entitled “Joint resolution extending the provisions of the Act entitled 'An Act to increase the internal revenue, and for other purposes,' approved October twenty-second, nineteen hundred and fourteen, to December thirty-first, nineteen hundred and sixteen,” to denote the payment of internal revenue tax, and which have not been used, if presented within two years after the purchase of such stamps.

Title effective when,

Sec, 412. That the provisions of this title shall take effect on the day following the passage of this Act, except where otherwise in this title provided.

Leave of absence of revenue agents and inspectors. Sec. 413. That all internal revenue agents and inspectors be granted leave of absence with pay, which shall not be cumulative, not to exceed thirty days in any calendar year, under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe.

Regulations relating to leave of absence. (T. D. 2369.)

[ocr errors][ocr errors][merged small]

Ezect of partial invalidity of act. Sec. 900. That if any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of said Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.

[merged small][ocr errors][merged small][merged small][merged small]

Sec. 902. That unless otherwise herein specially provided, this Act shall take effect on the day following its passage, and all provisions of any Act or Acts inconsistent with the provisions of this Act are hereby repealed.

Citation of act.

Sec. 903. [Added by sec. 1403, Act of February 24, 1919 (40 Stat., 1057).] That this Act may be cited as the “Revenue Act of 1916."

CHAPTER 11.

AN ACT To provide increased revenue to defray the expenses of the increased

appropriations for the Army and Navy and the extensions of fortifications, and for other purposes. Approved March 3, 1917 (39 Stat., 1000).

Title II—Excess-profits tax.

Definitions.
Extra tax on incomes of corpora-

tions and partnerships; insur

ance exception; computation. Actual capital defined. Basis of computation; collection;

fiscal year of partnership; pro

portion for calendar year 1916.
Exemptions.
Statement by corporation of ac-

tual capital invested; detailed
statement by partnership; de-
ductions.

Title II — Excess - profits tax --- Con

tinued.
General laws applicable.

Regulations.
Title III-Estate tax.

Increase of rates,

Prior transfers at former rates. Title IV-Miscellaneous.

Sworn returns of all dividends

by corporations, etc.; names of shareholders.

TITLE II.-EXCESS-PROFITS TAX.1

Definitions.

SEC. 200. That when used in this title

The term “corporation ” includes joint-stock companies or associations, and insurance companies;

The term “United States” means only the States, the Territories of Alaska and Hawaii, and the District of Columbia; and

The term "taxable year” means the twelve months ending December thirty-first, except in the case of a corporation or partnership allowed to fix its own fiscal year, in which case it means such fiscal year. The first taxable year shall be the year ending December thirty-first, nineteen hundred and seventeen.

Rates of taxes; computation. SEC, 201. That in addition to the taxes under existing laws there shall be levied, assessed, collected, and paid for each taxable year upon the net income of every corporation and partnership organized, authorized, or existing under the laws of the United States, or of any State, Territory, or District thereof, no matter how created or organized, excepting income derived from the business of life, health, and accident insurance combined in one policy issued on the weekly premium payment plan, a tax of eight per centum of the amount by which such net income exceeds the sum of (a) $5,000 and (b) eight per centum of the actual capital invested.

Every foreign corporation and partnership, including corporations and partnerships of the Philippine Islands and Porto Rico, shall pay for each taxable year a like tax upon the amount by which its net income received from all sources within the United States exceeds the sum of (a) eight per centum of the actual capital invested and used or employed in the business in the United States, and (b) that proportion of $5,000 which the entire actual capital invested and used or employed in the business in the United States bears to the entire actual capital invested; and in case no such capital is used or employed in the business in the United States the tax shall be imposed upon that portion of such net income which is in excess of the sum of (a) eight per centum of that proportion of the entire actual capital invested and used or employed in the business which the net income from sources within the United States bears to the entire net income, and (b) that proportion of $5,000 which the net income from sources within the United States bears to the entire net income.

1 Repealed by act of Oct. 3, 1917; sec. 214; see p. 861.

Actual capital defined.

Sec. 202. That for the purpose of this title actual capital invested means (1) actual cash paid in, (2) the actual cash value at the time of payment of assets other than cash paid in, and (3) paid in or earned surplus and undivided profits used or employed in the business; but does not include money or other property borrowed by the corporation or partnership.

Computation of tax; collection.

SEC. 203. That the tax herein imposed upon corporations and partnerships shall be computed upon the basis of the net income shown by their income tax returns under Title I of the act entitled “An act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen, or under this title, and shall be assessed and collected at the same time and in the same manner as the income tax due under Title I of such act of September eighth, nineteen hundred and sixteen: Provided, That for the purpose of this title a partnership shall have the same privilege with reference to fixing its fiscal year as is accorded corporations under section thirteen (a) of Title I of such act of September eighth, nineteen hundred and sixteen: And provided further. That where a corporation or partnership makes return prior to March first, nineteen hundred and eighteen, covering its own fiscal year and includes therein any income received during the calendar year ending December thirty-first, nineteen hundred and sixteen, the tax herein imposed shall be that proportion of the tax based upon such full fiscal year which the time from January first, nineteen hundred and seventeen, to the end of such fiscal year bears to the full fiscal year.

Exemptions.

Sec. 204. That corporations exempt from tax under the provisions of section eleven of Title I of the act approved September eighth, nineteen hundred and sixteen, and partnerships carrying on or doing the same business shall be exempt from the provisions of this title, and the tax imposed by this title shall not attach to incomes of partnerships derived from agriculture or from personal services.

Statement in return; deductions.

Sec. 205. That every corporation having a net income of $5,000 or more for the taxable year making a return under Title I of such act of September eighth, nineteen hundred and sixteen, shall for the purposes of this title include in such return a detailed statement of the actual capital invested.

Every partnership having a net income of $5,000 or more for the taxable year shall render a correct return of the income of the partnership for the taxable year, setting forth specifically the actual capital invested and the gross income for such year and the deductions hereinafter allowed. Such returns shall be rendered at the same time and in the same manner and form as is prescribed for income tax returns under Title I of such act of September eighth, nineteen hundred and sixteen. In computing net income of a partnership for the purposes of this title there shall be allowed like deductions as are allowed to individuals in sections five (a) and six (a) of such act of September eighth, nineteen hundred and sixteen.

General laws applicable.

Sec. 206. That all administrative, special, and general provisions of law, including the laws in relation to the assessment, remission, collection, and refund of internal-revenue taxes not heretofore specifically repealed and not inconsistent with the provisions of this title are hereby extended and made applicable to all the provisions of this title and to the tax herein imposed, and all provisions of Title I of such act of September eighth, nineteen hundred and sixteen, relating to returns and payment of the tax therein imposed, including penalties, are hereby made applicable to the tax required by this title.

Regulations.

SEC. 207. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make all necessary regulations for carrying out the provisions of this title and may require any corporation or partnership subject to the provisions of this title to furnish him with such facts, data, and information as in his judgment are necessary to collect the tax provided for in this title.

TITLE III.-ESTATE TAX.1

Rates increased.

Sec. 300. That section two hundred and one, Title II, of the Act entitled “An Act to increase the revenue, and for other purposes, approved September eighth, nineteen hundred and sixteen be, ani the same is hereby, amended to read as follows:

“ SEC. 201. That a tax (hereinafter in this title referred to as the tax), equal to the following percentages of the value of the net estate, to be determined as provided in section two hundred and three, is hereby imposed upon the transfer of the net estate of every decedent dying after the passage of this Act, whether a resident or nonresident of the United States:

1 Repealed by act of Feb. 24, 1919, sec. 1400; see p. 632.

“One and one-half per centum of the amount of such net estate not in excess of $50,000;

“Three per centum of the amount by which such net estate exceeds $50,000 and does not exceed $150,000;

“ Four and one-half per centum of the amount by which such net estate exceeds $150,000 and does not exceed $250,000;

“Six per centum of the amount by which such net estate exceeds $250,000 and does not exceed $150,000;

“ Seven and one-half per centum of the amount by which such net estate exceeds $150,000 and does not exceed $1,000,000;

“Nine per centum of the amount by which such net estate exceeds $1,000,000 and does not exceed $2,000,000;

“ Ten and one-half per centum of the amount by which such net estate exceeds $2,000,000 and does not exceed $3,000,000;

“ Twelve per centum of the amount by which such net estate exceeds $3,000,000 and does not exceed $1,000,000;

“Thirteen and one-half per centum of the amount by which such net estate exceeds $4,000,000 and does not exceed $5,000,000; and

“ Fifteen per centum of the amount by which such net estate exceeds $5,000,000.”

Prior transfers at former rates.

Sec. 301. That the tax on the transfer of the net estate of decedents dying between September eighth, nineteen hundred and sixteen, and the passage of this Act shall be computed at the rates originally prescribed in the Act approved September eighth, nineteen hundred and sixteen.

TITLE IV.--MISCELLANEOUS.

[ocr errors][merged small]

Sec. 402.1 That Title I of the Act entitled “An Act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen, be amended by adding to Part III a new section, as follows:

“Sec. 26. Every corporation, joint-stock company or association, or insurance company subject to the tax herein imposed, when required by the Commissioner of Internal Revenue, shall render a correct return. duly verified under oath, of its payments of dividends, whether made in cash or its equivalent or in stock, including the names and addresses of stockholders and the number of shares owned by each, in such form and manner as may be prescribed by the Commissioner of Intenal Revenue, with the approval of the Secretary of the Treasury."

1 Amended by act of Oct. 3, 1917, sec. 1210; see p. 899.

« PreviousContinue »