Taxable Years Sec. 204. (c) (11) Dividends and similar distributions paid or declared to policyholders in their capacity as such. The term "paid or declared" shall be construed according to the method of accounting regularly employed in keeping the books of the insurance company. Sec. 204 (c) (11), I. R. C., supra, added to I. R C. by Sec. 164 (c) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 204. (d) Deductions of foreign corporations. In the case of Taxable Years Sec. 204. (c) (11) Dividends and similar distributions paid or declared to policyholders in their capacity as such. The term "paid or declared" shall be construed according to the method of accounting regularly employed in keeping the books of the insurance company. Sec. 204 (c) (11), I. R. C., supra, added to I. R. C. by Sec. 164 (c) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Taxable Years Sec. 204. (d) Deductions of for- Sec. 204. (d) Deductions of foreign corporations. In the case of eign corporations. In the case of a foreign corporation the deduc- a foreign corporation the deduc- a foreign corporation the deduetions allowed in this section shall tions allowed in this section shall tions allowed in this section shall be allowed to the extent provided be allowed to the extent provided be allowed to the extent provided in Supplement I in the case of a foreign corporation engaged in trade or business within the United States. Sec. 204 (d), I. R. C., supra, amended by Sec. 160 (d), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 204 (d), I. R. C., supra, before amendment, see 1942 column. Sec. 204. (e) Double deductions. in Supplement I in the case of a Sec. 204 (d), I. R. C., supra, amended by Sec. 160 (d), R. A. of 1942, by omitting language shown in stricken through type. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 204. (e) Double deductions. in Supplement I in the case of a foreign corporation engaged in trade or business within the United States or having an office or place of business therein. Sec. 204. (e) Double deductions. -Nothing in this section shall be-Nothing in this section shall be-Nothing in this section shall be construed to permit the same item construed to permit the same item construed to permit the same item to be twice deducted. Sec. 204. (f) Credits under section 26. For the purposes of this section, in computing normal tax net income and corporation surtax net income, the credits provided in section 26 shall be allowed in the manner and to the extent provided in sections 13 (a) and 15 (a). Sec. 204 (f), I. R. C., supra, added to I. R. C. by Sec. 164 (d), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 205. Taxes of foreign countries and possessions of United States. to be twice deducted. Sec. 204. (f) Credits under section 26.-For the purposes of this section, in computing normal tax net income and corporation surtax net income, the credits provided in section 26 shall be allowed in the manner and to the extent provided in section 13 (a) and 15 (a). Sec. 204 (f), I. R. C., supra, added to I. R. C. by Sec. 164 (d), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 205. Taxes of foreign countries and possessions of United States. to be twice deducted. Sec. 205. Taxes of foreign countries and possessions of United States. The amount of income, warprofits, and excess-profits taxes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax of a domestic insurance company subject to the tax imposed by section 201, 204, or 207, to the extent provided in the case of a do The amount of income, war- The amount of income, warprofits, and excess-profits taxes im- profits, and excess-profits taxes imposed by foreign countries or pos- posed by foreign countries or possessions of the United States shall sessions of the United States shall be allowed as a credit against the be allowed as a credit against the tax of a domestic insurance com- tax of a domestic insurance company subject to the tax imposed by pany subject to the tax imposed by section 201, 204, or 207, to the ex- section 201, 204, or 207, to the extent provided in the case of a do- tent provided in the case of a domestic corporation in section 131, mestic corporation in section 131, mestic corporation in section 131, Taxable Years Taxable Years Taxable Years Sec. 204. (d) Deductions of foreign corporations. In the case of a foreign corporation the deductions allowed in this section shall Sec. 204. (d) Deductions of foreign corporations.-In the case of a foreign corporation the deductions allowed in this section shall be allowed to the extent provided be allowed to the extent provided in Supplement I in the case of a foreign corporation engaged in trade or business within the United States or having an office or place of business therein. in Supplement I in the case of a Sec. 204. (d) Deductions of foreign corporations. See p. 316, Eighth Edition. Sec. 204. (e) Double deductions. Sec. 204. (e) Double deductions. -Nothing in this section shall be -Nothing in this section shall be construed to permit the same item construed to permit the same item to be twice deducted. to be twice deducted. Sec. 204. (e) Double deductions. See p. 316, Eighth Edition. Sec. 205. Taxes of foreign countries and possessions of United States. Sec. 205. Taxes of foreign countries and possessions of United States. The amount of income, war- The amount of income, warprofits, and excess-profits taxes im- profits, and excess-profits taxes imposed by foreign countries or pos- posed by foreign countries or possessions of the United States shall sessions of the United States shall be allowed as a credit against the be allowed as a credit against the tax of a domestic insurance com- tax of a domestic insurance company subject to the tax imposed by pany subject to the tax imposed by section 201, 204, or 207, to the extent provided in the case of a domestic corporation in section 131, section 201, 204, or 207, to the ex- Sec 205. Taxes of foreign countries and possessions of United States. See p. 318, Eighth Edition. Taxable Years Taxable Years Taxable Years and in the case of the tax imposed and in the case of the tax imposed and in the case of the tax imposed by section 201 or 204 "net income" by section 201 or 204 "net income" by section 201 or 204 "net income" as used in section 131 means the net as used in section 131 means the net as used in section 131 means the net income as defined in this Supple-income as defined in this Supple- income as defined in this Supplement. Sec. 206. Computation of gross income. The gross income of insurance companies subject to the tax imposed by section 201 or 204 shall not be determined in the manner provided in section 119. Sec. 207. Mutual insurance companies other than life or marine. ment. Sec. 206. Computation of gross income. The gross income of insurance companies subject to the tax imposed by section 201 or 204 shall not be determined in the manner provided in section 119. Sec. 207. Mutual insurance companies other than life or marine. ment. Sec. 206. Computation of gross income. The gross income of insurance companies subject to the tax imposed by section 201 or 204 shall not be determined in the manner provided in section 119. Sec. 207. Mutual insurance companies other than life. Sec. tax. 207. (a) Imposition of Sec. 207. (a) Imposition of tax. Sec. 207. (a) Imposition of tax. -There shall be levied, collected, -There shall be levied, collected, and paid for each taxable year and paid for each taxable year upon upon the income of every mutual the income of every mutual insur- Sec. 207. (a) (1) In general.— insurance company (other than a ance company (other than a life or There shall be levied, collected, life or a marine insurance company a marine insurance company and and paid for each taxable year and other than an interinsurer or other than an interinsurer or re- upon the normal-tax net income reciprocal underwriter) a tax com- ciprocal underwriter) a tax com- of every mutual insurance computed under paragraph (1) or puted under paragraph (1) or pany (other than a life insurance paragraph (2) whichever is the paragraph (2) whichever is the company) a tax at the rates progreater and upon the income of greater and upon the income of vided in section 13 every mutual insurance company every mutual insurance company 14 (b). (other than a life or a marine in- (other than a life or a marine insurance company) which is an in-surance company) which is an interinsurer or reciprocal underwriter, terinsurer or reciprocal underwriter, a tax computed under paragraph a tax computed under paragraph (3): (3): Sec. 207. (a) (1) If the corpoSec. 207. (a) (1) If the corporation surtax net income is over ration surtax net income is over $3,000 a tax computed as follows: $3,000 a tax computed as follows: (A) Normal Tax.-A normal tax (A) Normal Tax.-A normal tax on the normal-tax net income, com- on the normal-tax net income, computed at the rates provided in sec-puted at the rates provided in section 13 or section 14 (b), or 30 per tion 13 or section 14 (b), or 30 per centum of the amount by which the centum of the amount by which the normal-tax net income exceeds normal-tax net income exceeds $3,000, whichever is the lesser; plus $3,000, whichever is the lesser; plus (B) Surtax.-A surtax on the (B) Surtax.-A surtax on the corporation surtax net income, com- corporation surtax net income, computed at the rates provided in sec-puted at the rates provided in section 15 (b), or 20 per centum of tion 15 (b), or 20 per centum of the the amount by which the corpora- amount by which the corporation tion surtax net income exceeds surtax net income exceeds $3,000, $3,000, whichever is the lesser. whichever is the lesser. Sec. 207. (a) (2) If for the tax- Sec. 207. (a) (2) If for the taxable year the gross amount of in- able year the gross amount of income from interest, dividends, come from interest, dividends, rents, rents, and net premiums, minus and net premiums, minus dividends dividends to policy holders, minus to policy holders, minus the interthe interest which under section 22 (b) (4) is excluded from gross income, exceeds $75,000, a tax equal to the excess of est which under section 22 (b) (4) (A) 1 per centum of the amounts (A) 1 per centum of the amounts so computed, or 2 per centum of so computed, or 2 per centum of the excess of the amount so com- the excess of the amount so com or section and in the case of the tax imposed and in the case of the tax imposed Sec. 207. (a) (1) In general.— Sec. 207. (a) (1) In general.— There shall be levied, collected, There shall be levied, collected, and paid for each taxable year and paid for each taxable year upon the normal-tax net income upon the special class net income of every mutual insurance com- of every mutual insurance company (other than a life insurance pany (other than a life insurance company) a tax at the rates pro- company) a tax equal to 161⁄2 per vided in section 13 or section centum thereof. 14 (b). Taxable Years Sec. 206. Computation of gross income. See p. 318, Eighth Edition. Sec. 207. Mutual insurance companies other than life. Sec. 207. (a) Imposition of tax. Sec. 207. (a) (1) In general. See p. 318, Eighth Edition. Taxable Years puted over $75,000, whichever is the lesser, over (B) the amount of the tax imposed under Subchapter E of Chapter 2. Taxable Years puted over $75,000, whichever is the (B) the amount of the tax im- Sec. 207. (a) (3) In the case of Sec. 207. (a) (3) In the case of an interinsurer or reciprocal under-an interinsurer or reciprocal underwriter, if the corporation surtax net income is over $50,000 a tax computed as follows: writer, if the corporation surtax net (A) Normal Tax.-A normal tax (A) Normal Tax.-A normal tax on the normal-tax net income, com- on the normal-tax net income, computed at the rates provided in sec-puted at the rates provided in section 13 or section 14 (b), or 48 per centum of the amount by which the normal-tax net income exceeds $50,000, whichever is the lesser; plus (B) Surtax.-A surtax on the corporation surtax net income, computed at the rates provided in section 15 (b), or 32 per centum of the amount by which the corporation surtax net income exceeds $50,000, whichever is the lesser. tion 13 or section 14 (b), or 48 per (B) Surtax.-A surtax on the Sec. 207. (a) (4) Gross amount Sec. 207. (a) (4) Gross amount received over $75,000 but less than received over $75,000 but less than $125,000.-If the gross amount re- $125,000.-If the gross amount received during the taxable year from ceived during the taxable year from interest, dividends, rents, and pre-interest, dividends, rents, and premiums (including deposits and assessments) is over $75,000 but less than $125,000, the amount ascertained under paragraph (1), paragraph (2) (A), and paragraph (3) shall be an amount which bears the same proportion to the amount ascertained under such paragraph, computed without reference to this paragraph, as the excess over $75,000 of such gross amount received bears to $50,000. miums (including deposits and as- Taxable Years Sec. 207. (a) (5) Foreign mutual Sec. 207. (a) (5) Foreign mutual Sec. 207. (a) (2) Foreign corpoinsurance companies other than insurance companies other than rations.-The tax imposed by paralife or marine. In the case of a life or marine.-In the case of a graph (1) shall apply to foreign foreign mutual insurance company foreign mutual insurance company corporations as well as domestic (other than a life or marine insur- (other than a life or marine insur- corporations; but foreign insurance company), the net income ance company), the net income shall ance companies not carrying on an shall be the net income from be the net income from sources insurance business within the sources within the United States within the United States and the United States shall be taxable as and the gross amount of income gross amount of income from inter- other foreign corporations. from interest, dividends, rents, and est, dividends, rents, and net prenet premiums shall be the amount miums shall be the amount of such of such income from sources within income from sources within the United States. the United States. Sec. 207. (a) (6) No United Sec. 207. (a) (6) No United States insurance business.-For- States insurance business.-Foreign mutual insurance companies eign mutual insurance companies (other than a life or marine insur- (other than a life or marine insurance company) not carrying on an ance company) not carrying on an insurance business within the insurance business within the United Sec. 207 (a), I. R. C., supra, amended by Sec. 205, R. A. of 1939, to read as above. Sec. 229 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. For Sec. 207 (a), I. R. C., before amendment, see Sec. 207 (a), I. R. C., in 1939 col umn. |