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Taxable Years Beginning in 1940

Taxable Years Beginning in 1939

Taxable Years

Beginning before 1939

Sec. 740. (d) Base period.-In the case of a taxpayer which is an acquiring corporation the base period shall be:

Sec. 740. (d) (1) If the tax is being computed for any taxable year beginning in 1940, the fortyeight months preceding the beginning of such taxable year; or

Sec. 740. (d) (2) If the tax is being computed for any taxable year beginning after December 31, 1940, the forty-eight months preceding what would have been its first taxable year beginning in 1940 if it had had a taxable year beginning in 1940 on the date on which the taxable year for which the tax is being computed began.

Sec. 740. (e) Base period years. -In the case of a taxpayer which is an acquiring corporation its base period years shall be the four successive twelve-month periods beginning on the same date as the beginning of its base period.

Sec. 740. (f) Existence of acquiring corporation. For the purposes of subsection (c) and section 741, if any component corporation was in existence on the date of the beginning of the taxpayer's base period (either actually or by reason of this subsection), its acquiring corporation shall be considered to have been in existence on such date.

Sec. 740. (g) Component corporations of component corporations. -If a corporation is a component corporation of an acquiring corporation, under subsection (b) or under this subsection, it shall (except for the purposes of section 742 (d) (1) and (2) and section 743 (a)) also be a component corporation of the corporation of which such acquiring corporation is a component corporation.

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Taxable Years
Beginning in 1943

read as above, by Sec. 228 (a), R. A. of 1942. Sec. 228 (f) of said Act provides that said amendments shall be applicable only to the computation of the tax for taxable years beginning after December 31, 1941, with exceptions shown in fn. 24, p. 776.

For prior amendments, see Sec. 740, L. R. C., in 1941 column.

See. 741. Election of income credit.

Repealed (see 1941 column) and re-enacted as shown in 1942 column.

Sec. 741, Allowance of excess profits credit.

Sec. 741 (b), I. R. C., supra, repealed by Sec. 224 (b), R. A. of 1942. Sec. 224 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 741 (a), I. R. C., supra, repealed by Sec 228 (b), R. A. of 1942. Sec. 201 of said Act makes amendment applicable

to taxable years beginning

after Dec. 31, 1941.

For Sec. 741, I. R. C., before repeal, see 1942 column.

Taxable Years
Beginning in 1942

read as above, and Sec. 740
(g) amended by adding lan-
guage in italics, by Sec. 228
(a), R. A. of 1942. Sec. 228
(f) of said Act provides
that said amendments shall
be applicable only to the
computation of the tax for
taxable years beginning after
December 31, 1941, with
exceptions shown in fn. 24,
p. 776.

For prior amendments, see
Sec. 740, I. R. C., in 1941
column.

See. 741. Election of income eredit.

Repealed (see 1941 column) and re-enacted as shown below.

See. 741, Allowance of excess profite eredit.

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C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 740, I. R. C., supra, amended by Sec. 8 (a), (b) and (c), Excess Profits Tax Amendments of 1941, by adding language shown in italics. Sec. 17 of said Act makes amendments effective as of Oct. 8, 1940, date of enactment of Excess Profits Tax Act of 1940.

Retroactivity

See Sec. 740, I. R. C., as amended in 1942 column, and note following said section regarding retroactive application of amendment. Also see fn. 24, p. 776.

See. 741. Election of income eredit.

In addition to the corporations which under section 712 (a) may elect the excess profits credit com puted under section 713 or the exeess profits eredit computed under section 714, a taxpayer which is an acquiring corporation which was in existence on the date of the begin ning of its base period shall have such election

Sec. 741. Allowance of excess profits credit.

See. 741. (a) Allowance. In the Sec. 741. (a) Allowance.-In the ease of a taxpayer which is an ao case of a taxpayer which is an acquiring corporation which was inquiring corporation which was in existence on the date of the begin ning of its base period, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, which ever amount results in the lesser tax under this subchapter for the taxable year for which the tax un der this subchapter is being com puted.

existence on the date of the beginning of its base period, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed.

See. 741. (b) Effect of disclaimer See. 741. (b) Effect of diselaimer of credit. If the taxpayer states of credit. If the taxpayer states in its return for the taxable year in its return for the tarable year under this subchapter that it dis under this cubchapter that it die elaims the use of the credit com claims the use of the credit cON puted under section 713 or the use puted under section 713 or the use of the credit computed under see of the credit computed under se tion 714, the credit so diselaimed tion 714, the credit so disclaimed shall not, for the purposes of the shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable

year.

Sec. 741, I. R. C., supra, amended by Sec. 14, Excess Profits Tax Amendments of 1941, to read as above before

internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable year

Sec. 741, I. R. C., as shown in stricken through type with heading "Election of Income Credit," added to I. R. C. by

Taxable Years Beginning in 1940

addition of language in underlined italics added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 740, I. R. C., supra, amended by Sec. 8 (a), (b) and (c), Excess Profits Tax Amendments of 1941, by adding language shown in underlined italics. Sec. 17 of said Act makes amendments effective as of Oct. 8, 1940, date of enactment of Excess Profits Tax Act of 1940.

Retroactivity

See Sec. 740, I. R. C., as amended in 1942 column and note following said section regarding retroactive application of amendment. Also see fn. 24, p. 776.

See. 741. Election of income credit,

In addition to the corporations which under section 712 (a) may elect the excess profits credit com puted under section 713 or the ex cess profits credit computed under section 714, a taxpayer which is an acquiring corporation which was in existence on the date of the beginning of its base period shall have Such election.

Sec. 741. Allowance of excess profits credit.

Sec. 741. (a) Allowance.-In the case of a taxpayer which is an acquiring corporation which was in existence on the date of the beginning of its base period, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed.

Bee. 741. (b) Effect of disclaimer of credit. If the taxpayer otates in its return for the taxable year under this cubekapter that it dis elaime the use of the credit computed under section 713 or the wee of the credit computed under 800 tion 714, the credit so disclaimed shall not, for the purposes of the internal revenue lawe, be applicable to the computation of the tax under this subchapter for such taxable year,

Sec. 741, I. R. C., as shown in stricken through type with heading "Election of Income Credit," added to I. R. C. by

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Taxable Years
Beginning in 1943

Sec. 742. Supplement A average base period net income.

Taxable Years
Beginning in 1942

being stricken through. Sec.
17 of said Act makes amend-
ment effective as of Oct. 8,
1940, date of enactment of Ex-
cess Profits Tax Act of 1940.

Sec. 741 (b), I. R. C., supra,
repealed by Sec. 224 (b), R. A.
of 1942. Sec. 224 (c) of said
Act makes amendment appli-
cable to taxable years begin-
ning after Dec. 31, 1939.

Sec. 741 (a), I. R. C., supra, repealed by Sec. 228 (b), R. A. of 1942. Sec. 201 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

Sec. 742. Supplement A average base period net income.

Taxable Years
Beginning in 1941

Sec. 201, Excess Profits Tax
Act of 1940. Sec. 710 (a),
I. R. C. makes amendment
applicable to taxable years
beginning after Dec. 31, 1939.

Sec. 741, I. R. C., supra,
amended by Sec. 14, Excess
Profits Tax Amendments of
1941, to read as shown in
italics following heading "Al-
lowance of Excess Profits
Tax Credit." Sec. 17 of said
Act makes amendment effec-
tive as of Oct. 8, 1940, date of
enactment of Excess Profits
Tax Act of 1940.

Sec. 741 (b), I. R. C., supra, repealed by Sec. 224 (b), R. A. of 1942. Sec. 224 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. Retroactivity

See Sec. 741 (a), I. R. C., in 1942 column, which was repealed by Sec. 228 (b), R. A. of 1942, and Sec. 228 (f), R. A. of 1942, in fn. 24, p. 776, relative to retroactive plication of amendment.

ap

Sec. 742. Average base period net income.

In the case of a taxpayer which In the case of a taxpayer which is In the case of a taxpayer which is an acquiring corporation, its an acquiring corporation, its aver- is an acquiring corporation which average base period net income (for age base period net income (for the was actually in existence on the the purpose of the credit computed purpose of the credit computed date of the beginning of its base under section 713) shall be the under section 713) shall be the period, or which is entitled under amount computed under section 713 amount computed under section 713 section 741 to elect the execse or the amount of its Supplement A or the amount of its Supplement A profits credit computed under see average base period net income, average base period net income, tion 713, the excess profits credit whichever is the greater. The Sup- whichever is the greater. The Sup- of which is allowed under section plement A average base period net plement A average base period net 741, its average base period net inincome shall be the amount com-income shall be the amount com- come (for the purpose of the credit puted without regard to subsection puted without regard to subsection computed under section 713) if the (h) of this section or computed untaxpayer was actually in existence der subsection (h) of this section, before January 1, 1940, shall, at the whichever is the greater. The Supelection of the taxpayer made in its plement A average base period net return for the taxable year, be comincome shall be computed as folfol-puted as follows, and if the taxlows:

(h) of this section or computed un-
der subsection (h) of this section,
whichever is the greater. The Sup-
plement A average base period net
income shall be computed as

lows:

payer was not actually in existence before such date, shall be computed as follows, in lieu of the method provided in section 713:

Sec. 742. (a) By ascertaining with respect to each of its base period years

Sec. 742. (a) By ascertaining with respect to each of its base period years—

Sec. 742. (a) By ascertaining with respect to each of its base period years

Sec. 742. (a) (1) The amount of Sec. 742. (a) (1) The amount of Sec. 742. (a) (1) The amount of its and each of its component cor-its and each of its component cor- its excess profits net income for poration's excess profits net income poration's excess profits net income each of its taxable years beginning for each of its and such component for each of its and such component after December 31, 1935, and endcorporation's taxable years begin- corporation's taxable years begin- ing with or within such base period ning with or within such base pe- ning with or within such base pe- year; or, in the case of each such riod year; or, in the case of each riod year; or, in the case of each taxable year in which the deduesuch taxable year of the taxpayer such taxable year of the taxpayer tions plus the credit for dividends or of such component corporation, or of such component corporation, received exceeded the gross income, as the case may be, in which the as the case may be, in which the the amount of such excess; deductions plus the credit for divi- deductions plus the credit for divi

dends received and the credit pro

dends received and the credit pro

e

Sec.

Taxable Years Beginning in 1940

Tax

201, Excess Profits Act of 1940. Sec. 710 (a), I. R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 741, I. R. C., supra, amended by Sec. 14, Excess Profits Tax Amendments of 1941, to read as shown in italics following heading "Allowance of Excess Profits Tax Credit." Sec. 17 of said Act makes amendment effective as of Oct. 8, 1940, date of enactment of Excess Profits Tax Act of 1940.

Sec. 741 (b), I. R. C., supra, repealed by Sec. 224 (b), R. A. of 1942. Sec. 224 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Retroactivity

See Sec. 741 (a), I. R. C., in 1942 column, which was repealed by Sec. 228 (b), R. A. of 1942, and Sec. 228 (f), R. A. of 1942, in fn. 24, p. 776, relative to retroactive application of amendment.

Sec. 742. Average base period net income.

In the case of a taxpayer which is an acquiring corporation which was actually in existence on the date of the beginning of its base period, or which is entitled under Section 741 to elect the

profits credit computed under seetion 713, the excess profits credit of which is allowed under section 741, its average base period net income (for the purpose of the credit computed under section 713) if the taxpayer was actually in existence before January 1, 1940, shall, at the election of the taxpayer made in its return for the txable year, be computed as follows, and if the taxpayer was not actually in existence before such date, shall be computed as follows, in lieu of the method provided in section 713:

Sec. 742. (a) By ascertaining with respect to each of its base period years

Sec. 742. (a) (1) The amount of its excess profits net income for each of its taxable years beginning after December 31, 1935, and ending with or within such base period year; or, in the case of each such taxable year in which the deductions plus the credit for dividends received exceeded the gross income, the amount of such excess;

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