length transaction, and at a price length transaction, and at a price. other than the fair market price, other than the fair market price, the Commissioner may determine the Commissioner may determine the purchase or sale price to be the purchase or sale price to be that for which such purchases or that for which such purchases or sales were at that time made in sales were at that time made in the ordinary course of trade. the ordinary course of trade.

Sec. 700. (i) Either the tax- Sec. 700. (i) Either the taxpayer or the Commissioner may payer or the Commissioner may rebut the presumption established rebut the presumption established by subsection (e) by proof of the by subsection (e) by proof of the actual extent to which the taxpayer actual extent to which the taxshifted to others the burden of the payer shifted to others the burden Federal excise tax. Such proof of the Federal excise tax. Such may include, but shall not be proof may include, but shall not limited to: be limited to:

Sec. 700. (i) (1) Proof that the Sec. 700. (i) (1) Proof that the change or lack of change in the change or lack of change in the margin was due to changes in fac- margin was due to changes in factors other than the tax. Such tors other than the tax. Such factors shall include any clearly factors shall include any clearly shown change (A) in the type or shown change (A) in the type or grade of article or materials, or grade of article or materials, or (B) in costs of production. If the (B) in costs of production. If the taxpayer asserts that the burden taxpayer asserts that the burden of the tax was borne by him while of the tax was borne by him while the burden of any other increased the burden of any other increased cost was shifted to others, the Com-cost was shifted to others, the missioner shall determine, from the Commissioner shall determine, respective effective dates of the tax from the respective effective dates and of the other increase in cost as of the tax and of the other incompared with the date of the crease in cost as compared with change in margin, and from the the date of the change in margin, general experience of the industry, whether the tax or the increase in other cost was shifted to others. If the Commissioner determines that the change in margin was due in part to the tax and in part to the increase in other cost, he shall apportion the change in margin between them.

and from the general experience
of the industry, whether the tax
or the increase in other cost was
shifted to others. If the Commis-
sioner determines that the change
in margin was due in part to the
tax and in part to the increase in
other cost, he shall apportion the
change in margin between them.

Sec. 700. (i) (2) Proof that the Sec. 700. (i) (2) Proof that the taxpayer modified contracts of taxpayer modified contracts of sale, or adopted a new contract of sale, or adopted a new contract of sale, to reflect the initiation, ter- sale, to reflect the initiation, termination, or change in amount of mination, or change in amount of the Federal excise tax, or at any the Federal excise tax, or at any such time changed the sale price such time changed the sale price of the article (including the effect of the article (including the effect of a change in size, package, dis- of a change in size, package, discount terms, or any other mer- count terms, or any other merchandising practice) by substan-chandising practice) by substantially the amount of the tax or tially the amount of the tax or change therein, or at any time change therein, or at any time billed the tax as a separate item billed the tax as a separate item to any vendee or indicated by any to any vendee or indicated by any writing that the sale price included writing that the sale price inthe amount of the tax, or con- cluded the amount of the tax, or tracted to refund any part of the contracted to refund any part of sale price in the event of recovery the sale price in the event of reof the tax or decision of its in-covery of the tax or decision of

Taxable Years

Beginning before 1939

Sec. 700. (j) (3) The term "refund or credit" does not include a refund or credit made in accordance with the provisions and limitations set forth in Title VII of the Revenue Act of 1936, 49 Stat. 1747, or in section 3443 (d).

Sec. 700. (j) (4) The term "tax adjustment" means a repayment or credit by the taxpayer to his vendee of an amount equal to the Federal excise tax with respect to an article (less reasonable expense to the vendor in connection with the nonpayment or recovery by him of the amount of such tax and in connection with the making of such repayment or credit) if such repayment or credit is made on or before June 1, 1936, or thereafter in the bona fide settlement of a written agreement entered into on or before March 3, 1936.

Sec. 700. (j) (5) The term "taxpayer" means a person subject to a tax imposed by this section.

Sec. 700. (j) (1) The term Sec. 700. (j) (1) The term "Federal excise tax" means a tax "Federal excise tax" means a tax or exaction with respect to the or exaction with respect to the sale, lease, manufacture, produc- sale, lease, manufacture, production, processing, ginning, importa- tion, processing, ginning, importation, transportation, refining, re- tion, transportation, refining, recovery, or holding for sale or other covery, or holding for sale or other disposition, of commodities or ar- disposition, of commodities or articles, provided for by any Federal ticles, provided for by any Federal statute, whether valid or invalid, statute, whether valid or invalid, if denominated a "tax" by such if denominated a "tax" by such statute. A federal excise tax shall statute. A Federal excise tax be deemed to have been imposed with respect to an article if it was imposed with respect to (or with respect to the processing of) any commodity or other article, from which such article was processed.

shall be deemed to have been im-
posed with respect to an article
if it was imposed with respect to
(or with respect to the processing
of) any commodity or other article,
from which such article was proc-
essed.

Sec. 700. (j) (2) The term date of the termination of the Federal excise tax" means, in the case of a Federal excise tax held invalid by a decision of the Supreme Court, the date of such decision.

Sec. 700. (j) (3) The term "re- Sec. 700. (j) (3) The term "refund or credit" does not include a fund or credit' does not include a refund or credit made in accordance refund or credit made in accordwith the provisions and limitations ance with the provisions and limiset forth in Title VII of the Rev-tations set forth in Title VII of enue Act of 1936, 49 Stat. 1747, or in section 3443 (d).

Sec. 700. (j) (4) The term "tax adjustment" means a repayment or credit by the taxpayer to his vendee of an amount equal to the Federal excise tax with respect to an article (less reasonable expense to the vendor in connection with the nonpayment or recovery by him of the amount of such tax and in connection with the making of such repayment or credit) if such repayment or credit is made on or before June 1, 1936, or thereafter in the bona fide settlement of a written agreement entered into on or before March 3, 1936.

Sec. 700. (j) (5) The term "taxpayer" means a person subject to a tax imposed by this section.

the Revenue Act of 1936, 49 Stat.
1747, or in section 3443 (d).

Sec. 700. (j) (4) The term "tax
adjustment" means a repayment
or credit by the taxpayer to his
vendee of an amount equal to the
Federal excise tax with respect to
an article (less reasonable expense
to the vendor in connection with
the nonpayment or recovery by
him of the amount of such tax and
in connection with the making of
such repayment or credit) if such
repayment or credit is made on or
before June 1, 1936, or thereafter
in the bona fide settlement of a
written agreement entered into on
or before March 3, 1936.

Sec. 700. (j) (5) The term "taxpayer' means a person subject to a tax imposed by this section.

Taxable Years

Beginning before 1939

Taxable Years
Beginning in 1943

Taxable Years
Beginning in 1942

Taxable Years
Beginning in 1941

Sec. 700. (k) All references in Sec. 700. (k) All references in Sec. 700. (k) All references in this section to the purchase or sale this section to the purchase or sale this section to the purchase or sale (or to parties to the sale) of ar- (or to parties to the sale) of ar- (or to parties to the sale) of articles with respect to which a Fed- ticles with respect to which a Fed- ticles with respect to which a Federal excise tax was imposed shall eral excise tax was imposed shall eral excise tax was imposed shall be deemed to include the purchase be deemed to include the purchase be deemed to include the purchase or sale (or parties to the sale) of or sale (or parties to the sale) of or sale (or parties to the sale) of services with respect to which a services with respect to which a services with respect to which a Federal excise tax was imposed, Federal excise tax was imposed, Federal excise tax was imposed. and for the purposes of subsec- and for the purposes of subsec- and for the purposes of subseetion (a) the extent to which the tion (a) the extent to which the tion (a) the extent to which the taxpayer shifted to others the bur- taxpayer shifted to others the bur- taxpayer shifted to others the burden of such Federal excise tax den of such Federal excise tax den of such Federal excise tax with respect to such services shall with respect to such services shall with respect to such services shall be presumed to be an amount com- be presumed to be an amount com- be presumed to be an amount computed as follows: From the sell-puted as follows: From the sell-puted as follows: From the selling price of the services there ing price of the services there ing price of the services there shall be deducted the average price shall be deducted the average price shall be deducted the average price received by the taxpayer for per- received by the taxpayer for per- received by the taxpayer for performing similar services during forming similar services during forming similar services during the six taxable years preceding the the six taxable years preceding the the six taxable years preceding the initial imposition of the Federal initial imposition of the Federal initial imposition of the Federal excise tax in question. The bal- excise tax in question. The bal- excise tax in question. The balance (to the extent that it does not ance (to the extent that it does not ance (to the extent that it does not exceed the amount of such Federal exceed the amount of such Federal exceed the amount of such Federal

excise tax with respect to such serv-excise tax with respect to such serv- excise tax with respect to such services minus any payments or credits ices minus any payments or credits ices minus any payments or credits with respect to the services made with respect to the services made with respect to the services made to purchasers as specified in sub- to purchasers as specified in sub- to purchasers as specified in subsection (f) (3)) shall be the extent section (f) (3)) shall be the extent section (f) (3)) shall be the extent to which the taxpayer shifted the to which the taxpayer shifted the to which the taxpayer shifted the burden of such Federal excise tax burden of such Federal excise tax burden of such Federal excise tax to others. If during any part of to others. If during any part of to others. If during any part of such six-year period the taxpayer such six-year period the taxpayer such six-year period the taxpayer was not in business, or if his rec- was not in business, or if his rec- was not in business, or if his records for any part of such period ords for any part of such period ords for any part of such period are so inadequate as not to furnish are so inadequate as not to furnish are so inadequate as not to furnish satisfactory data, the average price satisfactory data, the average price satisfactory data, the average price of the taxpayer for such part of of the taxpayer for such part of of the taxpayer for such part of such period shall, when necessary such period shall, when necessary such period shall, when necessary for a fair comparison, be deemed for a fair comparison, be deemed for a fair comparison, be deemed to be the average price, as deter- to be the average price, as deter- to be the average price, as determined by the Commissioner, of rep- mined by the Commissioner, of rep-mined by the Commissioner, of representative concerns engaged in a resentative concerns engaged in a resentative concerns engaged in a similar business and similarly cir- similar business and similarly cir- similar business and similarly circumstanced. The presumption ex- cumstanced. The presumption es- cumstanced. The presumption established by this subsection may be tablished by this subsection may be rebutted by proof of the character rebutted by proof of the character described in subsection (i). described in subsection (i).

tablished by this subsection may be rebutted by proof of the character described in subsection (i).

Sec. 700. (1) The taxes imposed Sec. 700. (1) The taxes imposed Sec. 700. (1) The taxes imposed by subsection (a) shall be imposed by subsection (a) shall be imposed by subsection (a) shall be imposed on the net income from the sources on the net income from the sources on the net income from the sources specified therein, regardless of any specified therein, regardless of any specified therein, regardless of any loss arising from the other trans- loss arising from the other trans- loss arising from the other transactions of the taxpayer, and re- actions of the taxpayer, and re- actions of the taxpayer, and regardless of whether the taxpayer gardless of whether the taxpayer gardless of whether the taxpayer had a taxable net income (under had a taxable net income (under had a taxable net income (under the income-tax provisions of the the income-tax provisions of the the income-tax provisions of the applicable Revenue Act) for the applicable Revenue Act) for the applicable Revenue Act) for the taxable year as a whole; except taxable year as a whole; except taxable year as a whole; except that if such application of the tax imposed by subsection (a) is held invalid, the tax under subsection

that if such application of the tax
imposed by subsection (a) is held
invalid, the tax under subsection

that if such application of the tax imposed by subsection (a) is held invalid, the tax under subsection

Sec. 700. (k) All references in Sec. 700. (k) All references in this section to the purchase or sale this section to the purchase or sale (or to parties to the sale) of ar- (or to parties to the sale) of articles with respect to which a Fed- ticles with respect to which a Federal excise tax was imposed shall eral excise tax was imposed shall be deemed to include the purchase be deemed to include the purchase or sale (or parties to the sale) of or sale (or parties to the sale) of services with respect to which a services with respect to which a Federal excise tax was imposed, Federal excise tax was imposed, and for the purposes of subsec- and for the purposes of subsection (a) the extent to which the tion (a) the extent to which the taxpayer shifted to others the bur- taxpayer shifted to others the burden of such Federal excise tax den of such Federal excise tax with respect to such services shall with respect to such services shall be presumed to be an amount com- be presumed to be an amount computed as follows: From the sell-puted as follows: From the selling price of the services there ing price of the services there shall be deducted the average price shall be deducted the average price received by the taxpayer for per- received by the taxpayer for performing similar services during forming similar services during the six taxable years preceding the the six taxable years preceding the initial imposition of the Federal initial imposition of the Federal excise tax in question. The bal- excise tax in question. The balance (to the extent that it does not ance (to the extent that it does exceed the amount of such Federal not exceed the amount of such excise tax with respect to such serv- Federal excise tax with respect to ices minus any payments or credits such services minus any payments with respect to the services made or credits with respect to the servto purchasers as specified in sub- ices made to purchasers as specsection (f) (3)) shall be the extent ified in subsection (f) (3)) shall to which the taxpayer shifted the be the extent to which the taxburden of such Federal excise tax payer shifted the burden of such to others. If during any part of Federal excise tax to others. If such six-year period the taxpayer during any part of such six-year was not in business, or if his rec- period the taxpayer was not in ords for any part of such period business, or if his records for any are so inadequate as not to furnish part of such period are so inadesatisfactory data, the average price quate as not to furnish satisfacof the taxpayer for such part of tory data, the average price of the such period shall, when necessary taxpayer for such part of such for a fair comparison, be deemed period shall, when necessary for a to be the average price, as deter- fair comparison, be deemed to be mined by the Commissioner, of rep- the average price, as determined resentative concerns engaged in a by the Commissioner, of represimilar business and similarly cir- sentative concerns engaged in a cumstanced. The presumption es- similar business and similarly cirtablished by this subsection may be cumstanced. The presumption esrebutted by proof of the character tablished by this subsection may described in subsection (i). be rebutted by proof of the character described in subsection (i).

Sec. 700. (1) The taxes imposed Sec. 700. (1) The taxes imposed by subsection (a) shall be imposed by subsection (a) shall be imposed on the net income from the sources on the net income from the sources specified therein, regardless of any specified therein, regardless of any loss arising from the other trans- loss arising from the other transactions of the taxpayer, and re- actions of the taxpayer, and regardless of whether the taxpayer gardless of whether the taxpayer had a taxable net income (under had a taxable net income (under the income-tax provisions of the the income-tax provisions of the applicable Revenue Act) for the applicable Revenue Act) for the taxable year as a whole; except taxable year as a whole; except that if such application of the tax that if such application of the tax imposed by subsection (a) is held imposed by subsection (a) is held invalid, the tax under subsection invalid, the tax under subsection

Taxable Years

Beginning before 1939