Sec. 1130. (a) Appointment and compensation.— The Board is authorized in accordance with the civil service laws to appoint, and in accordance with the Classification Act of 1923, 42 Stat. 1488 (U. S. C., Title 5, § 13) as amended to fix the compensation of, such employees as may be necessary efficiently to execute the functions vested in the Board.

Sec. 1130. (b) Expenses for travel and subsistence. The employees of the Board shall receive their necessary traveling expenses, and expenses for subsistence while traveling on duty and away from their designated stations, as provided in the Subsistence Expense Act of 1926, 44 Stat. 688 (U. S. C., Title 5, c. 16).

Sec. 1131. Expenditures.

The Board is authorized to make such expenditures (including expenditures for personal services and rent at the seat of Government and elsewhere, and for law books, books of reference, and periodicals), as may be necessary efficiently to execute the functions vested in the Board. All expenditures of the Board shall be allowed and paid, out of any moneys appropriated for the purposes of the Board, upon presentation of itemized vouchers therefor signed by the chairman.

Sec. 1132. Disposition of fees.

All fees received by the Board shall be covered into the Treasury as miscellaneous receipts. Section 3709 of the Revised Statutes (U. S. C., Title 41, § 5) shall not be construed to apply to any purchase or service rendered for the Board when the aggregate amount involved does not exceed the sum of $25.

Sec. 1133. Fee for transcript of record.

The Board is authorized to fix a fee, not in excess of the fee fixed by law to be charged and collected therefor by the clerks of the district courts, for comparing, or for preparing and comparing, a transcript of the record, or for copying any record, entry, or other paper and the comparison and certification thereof.

Sec. 1140. Date when Board decision becomes final.

The decision of the Board shall become final

Sec. 1140. (a) Petition for review not filed on time. Upon the expiration of the time allowed for filing a petition for review, if no such petition has been duly filed within such time; or

Sec. 1140. (b) Decision affirmed or petition for review dismissed.—

Sec. 1140. (b) (1) Petition for certiorari not filed on time. Upon the expiration of the time allowed for filing a petition for certiorari, if the decision of the Board has been affirmed or the petition for review dismissed by the Circuit Court of Appeals and no petition for certiorari has been duly filed; or

Sec. 1140. (b) (2) Petition for certiorari denied. Upon the denial of a petition for certiorari, if the decision of the Board has been affirmed or the petition for review dismissed by the Circuit Court of Appeals; or

Sec. 1140. (b) (3) After mandate of Supreme Court. Upon the expiration of 30 days from the date of issuance of the mandate of the Supreme Court, if such Court directs that the decision of the Board be affirmed or the petition for review dismissed.

Sec. 1140. (c) Decision modified or reversed.

Sec. 1140. (c) (1) Upon mandate of Supreme Court. If the Supreme Court directs that the decision of the Board be modified or reversed, the decision of the Board rendered in accordance with the mandate of the Supreme Court shall become final upon the expiration of 30 days from the time it was rendered, unless within such 30 days either the Commissioner or the taxpayer has instituted proceedings to have such decision corrected to accord with the mandate, in which event the decision of the Board shall become final when so corrected.

Sec. 1140. (c) (2) Upon mandate of the Circuit Court of Appeals. If the decision of the Board is modified or reversed by the Circuit Court of Appeals, and if (1) the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the Court has been affirmed by the Supreme Court, then the decision of the Board rendered in accordance with the mandate of the Circuit Court of Appeals shall become final on the expiration of 30 days from the time such decision of the Board was rendered, unless within such 30 days either the Commissioner or the taxpayer has instituted proceedings to have such decision corrected so that it will accord with the mandate, in which event the decision of the Board shall become final when so corrected.

Sec. 1140. (d) Rehearing.-If the Supreme Court orders a rehearing; or if the case is remanded by the Circuit Court of Appeals to the Board for a rehearing, and if (1) the time allowed for filing a petition for certiorari has expired, and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the Court has been affirmed by the Supreme Court, then the decision of the Board rendered upon such rehearing shall become final in the same manner as though no prior decision of the Board had been rendered.

Sec. 1140. (e) Definitions.-As used in this section

Sec. 1140. (e) (1) Circuit Court of Appeals.-The term "Circuit Court of Appeals" includes the United States Court of Appeals for the District of Columbia;

Sec. 1140. (e) (2) Mandate.-The term "mandate," in case a mandate has been recalled prior to the expiration of 30 days from the date of issuance thereof, means the final mandate.

Sec. 1141. Courts of review.

Sec. 1141. (a) Jurisdiction.-The Circuit Courts of Appeals and the United States Court of Appeals for the District of Columbia shall have exclusive jurisdiction to review the decisions of the Board, except as provided in section 239 of the Judicial Code, as amended, 43 Stat. 938 (U. S. C., Title 28, § 346); and the judgment of any such court shall be final, except that it shall be subject to review by the Supreme Court of the United States upon certiorari, in the manner provided in section 240 of the Judicial Code, as amended, 43 Stat. 938 (U. S. C., Title 28, § 347).

Sec. 1141. (b) Venue.—

Sec. 1141. (b) (1) In general.-Except as provided in paragraph 2, such decisions may be reviewed by the Circuit Court of Appeals for the circuit in which is located the collector's office to which was made the return of the tax in respect of which the liability arises or, if no return was made, then by the United States Court of Appeals for the District of Columbia.

Sec. 1141. (b) (2) By agreement.-Notwithstanding the provisions of paragraph 1, such decisions may be reviewed by any Circuit Court of Appeals, or the United States Court of Appeals for the District of Columbia, which may be designated by the Commissioner and the taxpayer by stipulation in writing.

Sec. 1141. (b) (3) Application of subsection.This subsection shall be applicable to all decisions of the Board rendered on and after May 10, 1934, and section 1002 of the Revenue Act of 1926, 44 Stat. 110, as in force prior to May 10, 1934, shall be applicable to such decisions rendered prior thereto, except that paragraph 2 of this subsection may be applied to any such decision rendered prior to May 10,

1934.

Sec. 1141. (c) Powers.

Sec. 1141. (c) (1) To affirm, modify, or reverse.— Upon such review, such courts shall have power to affirm or, if the decision of the Board is not in accordance with law, to modify or to reverse the decision of the Board, with or without remanding the case for a rehearing, as justice may require.

Sec. 1141. (c) (2) To make rules.—Such courts are authorized to adopt rules for the filing of the petition for review, the preparation of the record for review, and the conduct of proceedings upon such review.

Sec. 1141. (c) (3) To require additional security. -Nothing in section 1145 shall be construed as relieving the petitioner from making or filing such undertakings as the court may require as a condition of or in connection with the review.

Sec. 1141. (c) (4) To impose damages.—The Circuit Court of Appeals, the United States Court of Appeals for the District of Columbia, and the Supreme Court shall have power to impose damages in any case where the decision of the Board is affirmed and it appears that the petition was filed merely for delay.

Sec. 1142. Petition for review.

The decision of the Board rendered after February 26, 1926 (except as provided in subdivision (j) of section 283 and in subdivision (h) of section 318 of the Revenue Act of 1926, 44 Stat. 65, 83, relating to hearings before the Board prior to February 26, 1926) may be reviewed by a Circuit Court of Appeals, or the United States Court of Appeals for the District of Columbia, as provided in section 1141, if a petition for such review is filed by either the Commissioner or the taxpayer within three months after the decision is rendered, or, in the case of a decision rendered on or before June 6, 1932, within six months after the decision is rendered.

Sec. 1143. Change of Commissioner.

When the incumbent of the office of Commissioner changes, no substitution of the name of his successor shall be required in proceedings pending after May 10, 1934, before any appellate court reviewing the action of the Board.

Sec. 1144. Cross reference.

For authority of the Board to fix fees for transcripts of records, see section 1133.

Sec. 1145. Bond to stay assessment and collection. Notwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, the review under section 1142 shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Board unless a petition for review in respect of such portion is duly filed by the taxpayer, and then only if the taxpayer (1) on or before the time his petition for review is filed has filed with the Board

a bond in a sum fixed by the Board not exceeding double the amount of the portion of the deficiency in respect of which the petition for review is filed, and with surety approved by the Board, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to the tax provided for by law, or (2) has filed a jeopardy bond under the income or estate tax laws. If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Board is paid after the filing of the review

Sec. 1200. Tax.

bond, such bond shall, at the request of the taxpayer, be proportionately reduced.

Sec. 1146. Refund, credit, or abatement of amounts disallowed.

In cases where assessment or collection has not been stayed by the filing of a bond, then if the amount of the deficiency determined by the Board is disallowed in whole or in part by the court, the amount so disallowed shall be credited or refunded to the taxpayer, without the making of claim therefor, or, if collection has not been made, shall be abated.

Sec. 1200. (a) Domestic corporations.-For each year ending June 30, beginning with the year ending June 30, 1939, there shall be imposed upon every domestic corporation with respect to carrying on or doing business for any part of such year an excise tax of $1.25 for each $1,000 of the adjusted declared value of its capital stock.

Sec. 1200. (b) Foreign corporations.-For each year ending June 30, beginning with the year ending June 30, 1939, there shall be imposed upon every foreign corporation with respect to carrying on or doing business in the United States for any part of such year an excise tax equivalent to $1.25 for each $1,000 of the adjusted declared value of capital employed in the transaction of its business in the United States.

Sec. 1200 (a) and (b), I. R. C. supra, amended by Sec. 301 (a), R. A. of 1941, by omitting figures in stricken through type and adding figures in italics. Sec. 301 (d) of said Act makes amendment applicable to the year ending June 30, 1941, and succeeding years.

Sec. 1200 (a) and (b), I. R. C., supra, again amended by Sec. 301 (a) R. A. of 1942, by striking out word "adjusted." Sec. 301 (e) of said Act makes amendment applicable to the year ending June 30, 1942, and succeeding years.

See. 1800. (e) Defense tax for five years. For the year ending June 30, 1940, and for the four sue eeeding years ending June 30, the rates provided in subsections (a) and (b) shall be $1.10 in lieu of $1.

Sec. 1200, I. R. C. supra, amended by Sec. 205, R. A. of 1940, approved June 25, 1940, by adding Sec. 1200 (c), which was repealed by Sec. 301 (b), R. A. of 1941. Sec. 301 (d) of said Act makes amendment applicable to the year ending June 30, 1941, and succeeding years.

Sec. 1201. Exemptions.

Sec. 1201. (a) The taxes imposed by section 1200 shall not apply

Sec. 1201. (a) (1) Corporations exempt from income tax. To any corporation enumerated in section 101;

Sec. 1201. (a) (2) Insurance companies.-To any insurance company subject to the tax imposed by section 201, 204, or 207.

Sec. 1201. (b) Common trust funds.—

For exemption of common trust funds from the capital stock tax, see section 169 (b) of chapter 1.

See. 1902. Adjusted declared value,
See. 1908. (a) Declaration year.

Sec. 1202. (a) (1) The adjusted declared value shall be determined with respect to three-year pe riods beginning with the year ending June 30, 1938, and each third year thereafter. The first year of each such three-year period, or, in case of a corporation not subject to the tax imposed for such year, the first year of such three year period for which the corporation is subject to such tax, shall constitute a "declaration year."

See. 1202. (a) (2) For the declaration year of the first three year period the adjusted declared value shall be the value as declared by the corporation in its return under section 601 of the Revenue Act of 1938, 52 Stat. 565, for the year ended June 30, 1938, or in the ease of a corporation not subject to the tax imposed for such year, the value as declared in its return filed under this chapter for the first year with respect to which it is subject to the tax. For each subsequent three-year period, the adjusted declared value for a declaration year shall be the value as declared by the corporation in its return for such declaration year. The value declared by a corpora tion in its return for a declaration year (which decla ration of value cannot be amended) shall be as ef the close of its last income tax taxable year ending with or prior to the close of such declaration year for as of the date of organization in the case of a corporation having no income tax taxable year-ending with or prior to the close of such declaration year)

See. 1202. (b) Subsequent years,

See. 1202. (b) (1) Domestic corporations. For each year of any three year period subsequent to the declaration year, the adjusted declared value in the case of a domestic corporation shall be the value declared in the return for the declaration year plus

(A) the cash, and the fair market value of prop. erty, paid in for stock or shares,

(B) paid in surplus and contributions to capital, (C) its net income, computed without the deduo tion of the tax imposed by Subchapter E of Chap tor 2,

(D) its income wholly exempt from Federal in come tax, and

(E) the amount, if any, by which the deduction for depletion exceeds the amount which would be allowable if computed without regard to discovery value or to percentage depletion, under section 114 (b) (2), (3), or (4) of chapter 1 or a corresponding section of a later Revenue Act; and minus

(i) the cash, and the fair market value of property, distributed to shareholders,

(ii) the amount disallowed as a deduction by seetion 24 (a) (5) of chapter 1 or a corresponding pro vision of a later Revenue Act, and

(iii) the excess of the deductions allowable for income tax purposes (not including the deduction for the tax imposed by Subchapter E of Chapter 2) over its gross incomer

The adjustments provided in this paragraph shall be made for each income tax taxable year included in the three-year period from the date as of which the value was declared in the return for the declaration year to the close of the last income tax taxable year ending with or prior to the close of the year for which the tax is imposed by this section. The amount of such adjustment for each such year shall be computed (on the basis of a separate return) according to the income tax law applicable to such year,

Sec. 1202 (b) (1), I. R. C., supra, amended by Sec. 202 (i), R. A. of 1941, by inserting language in italics. Sec. 205 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

See. 1202. (b) (2) Foreign corporations. For each year of any three-year period subsequent to the declaration year, the adjusted declared value in the case of a foreign corporation shall be the value de elared in the return for the declaration year-adjusted (for the same income tax taxable years as in the ease of a domestic corporation), in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, to reflect increases or de ereases in the capital employed in the transaction of its business in the United States.

See. 1202. (e) Corporations in bankruptcy or receivership. The capital-stock tax year beginning with or within an income tax taxable year within which bankruptey or receivership, due to insolvency, of a domestic corporation, is terminated shall con stitute a declaration year. In such case the adjusted declared value for any subsequent year of the three year period shall be determined on the basis of the value declared in the return for such declaration year.

See. 1202. (d) Credit for China Trade Act Corporations. For the purpose of the tax imposed by section 1200 there shall be allowed in the ease of a Corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., Title 15, e. 4), as a

eredit against the adjusted declared value of its capital stock, an amount equal to the proportion of such adjusted declared value which the par value of the shares of stock of the corporation, owned on the last day of the taxable year by (1) persons resi dent in China, the United States, or possessions of the United States, and (2) individual citizens of the United States or China wherever resident, bears to the par value of the whole number of shares of stock of the corporation outstanding on such date. For the purposes of this subsection shares of stock of a corporation shall be considered to be owned by the person in whom the equitable right to the income from such shares is in good faith vested; and as used in this subsection the term "China" shall have the same meaning as when used in the China Trade Aet, 1929.

See. 1202. (e) Additional declaration years.—In the case of any domestic corporation, the year end ing June 30, 1939, and the year ending June 30, 1940, shall cach, if not otherwise a declaration year, constitute an additional declaration year if with re spect to such year (1) the taxpayer so elects (which election cannot be changed) in ito return filed before the expiration of the statutory filing period or any authorized extension thereof, and (2) the value do clared by the taxpayer is in excess of the adjusted declared value computed under paragraph (1) of subsection (b). If, under this subsection, the year ending June 30, 1939, is a declaration year, the com putation, under paragraph (1) of subsection (b), of the adjusted declared value for the year ending June 30, 1940, shall be made on the basis of the value declared for the year ending June 30, 1939,

Sec. 1202. (a) Declaration of value.—The declared value shall be the value as declared by the corporation in its return for the year (which declaration of value cannot be amended). The value declared by the corportion in its return shall be asof the close of its last income-tax taxable year ending with or prior to the close of the capital stock tax taxable year (or as of the date of organization in the case of a corporation having no income-tax taxable year ending with or prior to the close of such declaration year).

Sec. 1202. (b) Credit for China Trade Act Corporations. For the purpose of the tax imposed by section 1200 there shall be allowed in the case of a corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., 1940 ed., title 15, ch. 4), as a credit against the declared value of its capital stock, an amount equal to the proportion of such declared value which the par value of the shares of stock of the corporaton, owned on the last day of the taxable year by (1) persons resident in China, the United States, or possessions of the United States, and (2) individual citizens of the United States or China wherever resident, bears to the par value of the whole number of shares of stock of the

corporation outstanding on such date. For the purposes of this subsection shares of stock of a corporation shall be considered to be owned by the person in whom the equitable right to the income from such shares is in good faith vested; and as used in this subsection the term "China" shall have the same meaning as when used in the China Trade Act, 1922.

Sec. 1202, I. R. C., amended by Sec. 301 (b), R. A. of 1942, to read as above in italics. Sec. 301 (e) of said Act makes amendment effective only with respect to the year ended June 30, 1942, and succeeding years. Sec. 301 (d), R. A. of 1942, reads as follows:

Sec. 301, (d), R. A. of 1942. "PRIOR RETURNS EFFECTIVE. If a return for the year ended June 30, 1942, is filed under Chapter 6 of the Internal Revenue Code, without regard to the amendment thereof as made by this Act, the adjusted declared value reported by the corporation on such return (whether or not correct) shall constitute the declared value for the purposes of such Chapter 6, as amended by this Act, unless a different value is declared on a subsequent return for such year received within the prescribed filing period."

Sec. 1203. Returns.

Sec. 1203. (a) Requirement.-Every corporation liable for tax under section 1200 shall make a return under oath. Such return shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe.

Sec. 1203. (b) Time for filing.

Sec. 1203. (b) (1) General rule.-Such return shall be made within one month after the close of the year with respect to which such tax is imposed.

Sec. 1203. (b) (2) Extension of time.-The Commissioner may extend the time for making the returns, under such rules and regulations as he may prescribe with the approval of the Secretary, but no such extension shall be for more than sixty days. With respect to the year ending June 30, 1941, years ended June 30, 1941, and June 30, 1942 the extension may be for not more than ninety days.

Sec. 1203 (b) (2), I. R. C., amended by Sec. 301 (c), R. A. of 1941, by adding language in italics. Sec. 1203 (b) (2), I. R. C., amended by Sec. 301 fective only with respect to the year ending June 30, 1941, and succeeding years.

Sec. 1203 (b) (2) I. R. C., again amended by Sec. 301 (c), R. A. of 1942, by omitting language in stricken through italics and adding language in underlined italics. Sec. 301 (e) of said Act makes amendment effective only with respect to the year ended June 30, 1942 and succeeding

years.

Sec. 1203. (c) Place for filing.-The return shall be made to the collector for the district in which is located the principal place of business of the corporation, or, if it has no principal place of business in the United States, then to the collector at Baltimore, Maryland.

Sec. 1204. Publicity of returns.

Returns required to be filed for the purpose of the tax imposed by section 1200 shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under chapter 1, except that paragraph (2) of subsections (b) and (f) of seetion 55 shall not apply.

Sec. 1205. Payment of tax.

Sec. 1205. (a) Time of payment.-The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the eollector before the expiration of the period for filing the return.

Sec. 1205. (b) Extension of time.-The Commissioner may extend the time for paying the taxes imposed by section 1200, under such rules and regulations as he may prescribe with the approval of the Secretary, but no such extension shall be for more than sixty days.

Sec. 1206. Addition to the tax in case of delinquency.

If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time when the tax became due until paid.

Sec. 1207. Other laws applicable.

All provisions of law (including penalties) applicable in respect of the taxes imposed by section 2700 shall, insofar as not inconsistent with this chapter, be applicable in respect of the taxes imposed by section 1200.

Sec. 1250. Imposition of tax.

Sec. 1250. (a) General rule. There shall be imposed upon the transfer of stock or securities by a citizen or resident of the United States, or by a domestic corporation or partnership, or by a trust which is not a foreign trust, to a foreign corporation as paid-in surplus or as a contribution to capital, or to a foreign trust, or to a foreign partnership, an excise tax equal to 272 25 per centum of the excess of (1) the value of the stock or securities so transferred over (2) its adjusted basis in the hands of the transferor as determined under section 113 of the Revenue Act of 1932, 47 Stat. 198.

See. 1250. (b) Defense tax for five years. In the case of any transfer during the period after the date of the enactment of the Revenue Act of 1910 and before July 1, 1945, the rate provided in subsection (a) shall be 271⁄2 per centum in lieu of 25 per cen

tum.

Sec. 1250, I. R. C., supra, amended by Sec. 208, R. A. of 1940, approved June 25, 1940, by adding “(a) General rule. " and also by adding subsection (b).

Sec. 1250, I. R. C., again amended by Sec. 110 (b) R. A. of 1941, by striking out "(a) General rule." and subsection (b), and by substituting "27" for "25."

Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.