Lapas attēli
PDF
ePub

1

(7) SPECIAL RULE APPLICABLE TO TRUSTS DESCRIBED IN SECTION 401 (a).-In the application of paragraph (1), if a trust described in section 401 (a) forming part of a stock bonus, pension, or profit-sharing plan of an employer lends any money to another trust described in section 401 (a) forming part of a stock bonus, pension, or profit-sharing plan of the same employer, such loan shall not be treated as an indebtedness of the borrowing trust, except to the extent that the loaning trust

(A) incurs any indebtedness in order to make such loan;

(B) incurred indebtedness before the making of such loan
which would not have been incurred but for the making of such
loan; or

(C) incurred indebtedness after the making of such loan which
would not have been incurred but for the making of such loan
and which was reasonably foreseeable at the time of making such
loan.
(8) TRUSTS DESCRIBED IN SECTION 501(c) (17).-

(A) In the case of a trust described in section 501 (c) (17), or
in the case of a corporation described in section 501 (c) (2), all of
the stock of which was acquired before January 1, 1960, by a
trust described in section 501 (c) (17), any indebtedness incurred
by such trust or such corporation before January 1, 1960, in
connection with real property which is leased before January 1,
1960, and any indebtedness incurred by such trust or such cor-
poration on or after such date necessary to carry out the terms
of such lease, shall not be considered as an indebtedness with
respect to such trust or such corporation for purposes of this
subsection.

(B) In the application of paragraph (1), if a trust described in section 501 (c) (17) forming part of a supplemental unemployment compensation benefit plan lends any money to another trust described in section 501 (c) (17) forming part of the same plan, such loan shall not be treated as an indebtedness of the borrowing trust, except to the extent that the loaning trust

(i) incurs any indebtedness in order to make such loan,

(ii) incurred indebtedness before the making of such loan which would not have been incurred but for the making of such loan, or

(iii) incurred indebtedness after the making of such loan which would not have been incurred but for the making of such loan and which was reasonably foreseeable at the time of

making such loan. (d) PERSONAL PROPERTY LEASED WIth REAL PROPERTY,-For purposes of this section, the term "real property” and the term

premises” include personal property of the lessor leased by it to a lessee of its real estate if the lease of such personal property is made under, or in connection with, the lease of such real estate. SEC. 515. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF

THE UNITED STATES. The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax of an organization subject to the tax imposed by section 511 to the extent provided in section 901; and in the case of the tax imposed by section

511, the term "taxable income” as used in section 901 shall be read as "unrelated business taxable income".

PART III-FARMERS' COOPERATIVES

Sec. 521. Exemption of farmers' cooperatives from tax.

Sec. 522. Tax on farmers' cooperatives.
SEC. 521. EXEMPTION OF FARMERS' COOPERATÍVES FROM TAX.

(a) EXEMPTION FROM Tax.-A farmers' cooperative organization described in subsection (b) (1) shall be exempt from taxation under this subtitle except as otherwise provided in section 522. Notwithstanding section 522, such an organization shall be considered an organization exempt from income taxes for purposes of any law which refers to organizations exempt from income taxes. (b) APPLICABLE RULES.

(1) EXEMPT FARMERS' COOPERATIVES.- The farmers' cooperatives exempt from taxation to the extent provided in subsection (a) are farmers', fruit growers', or like associations organized and operated on a cooperative basis (A) for the purpose of marketing the products of members or other producers, and turning back to them the proceeds of sales, less the necessary marketing expenses, on the basis of either the quantity or the value of the products furnished by them, or (B) for the purpose of purchasing supplies and equipment for the use of members or other persons, and turning over such supplies and equipment to them at actual cost, plus necessary expenses.

(2) ORGANIZATIONS HAVING CAPITAL STOCK.--Exemption shall not be denied any such association because it has capital stock, if the dividend rate of such stock is fixed at not to exceed the legal rate of interest in the State of incorporation or 8 percent per annum, whichever is greater, on the value of the consideration for which the stock was issued, and if substantially all such stock (other than non voting preferred stock, the owners of which are not entitled or permitted to participate, directly or indirectly, in the profits of the association, upon dissolution or otherwise, beyond the fixed dividends) is owned by producers who market their products or purchase their supplies and equipment through the association.

(3) ORGANIZATIONS MAINTAINING RESERVE.—Exemption shall not be denied any such association because there is accumulated and maintained by it a reserve required by State law or a reasonable reserve for any necessary purpose.

(4) TRANSACTIONS WITH NONMEMBERS.-Exemption shall not be denied any such association which markets the products of nonmembers in an amount the value of which does not exceed the value of the products marketed for members, or which purchases supplies and equipment for nonmembers in an amount the value of which does not exceed the value of the supplies and equipment purchased for members, provided the value of the purchases made for persons who are neither members nor producers does not exceed 15 percent of the value of all its purchases.

(5) BUSINESS FOR THE UNITED STATES.—Business done for the United States or any of its agencies shall be disregarded in determining the right to exemption under this section.

SEC. 522, TAX ON FARMERS' COOPERATIVES.

(a) IMPOSITION OF Tax.--An organization exempt from taxation under section 521 shall be subject to the taxes imposed by section 11 or section 1201. (b) COMPUTATION OF TAXABLE INCOME.—

(1) GENERAL RULE.-In computing the taxable income of such an organization there shall be allowed as deductions from gross income in addition to other deductions allowable under this chapter) )

(A) amounts paid as dividends during the taxable year on its capital stock, and

(B) amounts allocated during the taxable year to patrons with respect to its income not derived from patronage (whether or not such income was derived during such taxable year) whether paid in cash, merchandise, capital stock, revolving fund certificates, retain certificates, certificates of indebtedness, letters of advice, or in some other manner that discloses to each patron the dollar amount allocated to him. Allocations made after the close of the taxable year and on or before the 15th day of the 9th month following the close of such year shall be considered as made on the last day of such taxable year to the extent the allocations are attributable to income derived before the close of such year.

(2) PATRONAGE DIVIDENDS, ETC.--Patronage dividends, refunds, and rebates to patrons with respect to their patronage in the same or preceding years (whether paid in cash, merchandise, capital stock, revolving fund certificates, retain certificates, certificates of indebtedness, letters of advice, or in some other manner that discloses to each patron the dollar amount of such dividend, refund, or rebate) shall be taken into account in computing taxable income in the same manner as in the case of a cooperative organization not exempt under section 521. Such dividends, refunds, and rebates made after the close of the taxable year and on or before the 15th day of the 9th month following the close of such year shall be considered as made on the last day of such taxable year to the extent the dividends, refunds, or rebates, are attributable to patronage occurring before the close of such year.

PART IV-SHIPOWNERS' PROTECTION AND INDEMNITY

ASSOCIATIONS

Sec. 526. Shipowners' protection and indemnity associations. SEC. 526. SHIPOWNERS' PROTECTION AND INDEMNITY ASSOCIA.

TIONS. There shall not be included in gross income the receipts of shipowners' mutual protection and indemnity associations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder; but such corporations shall be subject as other persons to the tax on their taxable income from interest, dividends, and rents.

Subchapter G-Corporations Used to Avoid Income Tax on

Shareholders

Part I. Corporations improperly accumulating surplus.
Part II. Personal holding companies.
Part III. Foreign personal holding companies.
Part IV. Deduction for dividends paid.

PART 1-CORPORATIONS IMPROPERLY ACCUMULATING

SURPLUS

Sec. 531. Imposition of accumulated earnings tax.
Sec. 532. Corporations subject to accumulated earnings tax.
Sec. 533. Evidence of purpose to avoid income tax.
Sec. 534. Burden of proof.
Sec. 535. Accumulated taxable income.
Sec. 536. Income not placed on annual basis.
Sec. 537. Reasonable needs of the business.

SEC. 531. IMPOSITION OF ACCUMULATED EARNINGS TAX.

In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the accumulated taxable income (as defined in section 535) of every corporation described in section 532, an accumulated earnings tax equal to the sum of

(1) 27 percent of the accumulated taxable income not in excess of $100,000, plus

(2) 38%, percent of the accumulated taxable income in excess of $100,000. SEC. 532. CORPORATIONS SUBJECT TO ACCUMULATED EARNINGS

TAX. (a) GENERAL RULE.-The accumulated earnings tax imposed by section 531 shall apply to every corporation (other than those described in subsection (b)) formed or availed of for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of being divided or distributed.

(b) EXCEPTIONS.- The accumulated earnings tax imposed by section 531 shall not apply to

(1) a personal holding company (as defined in section 542).

(2) a foreign personal holding company (as defined in section 552), or

(3) a corporation exempt from tax under subchapter F (section 501 and following). SEC. 533. EVIDENCE OF PURPOSE TO AVOID INCOME TAX.

(a) UNREASONABLE ACCUMULATION DETERMINATIVE OF PURPOSE.For purposes of section 532, the fact that the earnings and profits of a corporation are permitted to accumulate beyond the reasonable needs of the business shall be determinative of the purpose to avoid the income tax with respect to shareholders, unless the corporation by the preponderance of the evidence shall prove to the contrary.

[ocr errors]

(b) HOLDING OR INVESTMENT COMPANY.—The fact that any corporation is a mere holding or investment company shall be prima facie evidence of the purpose to avoid the income tax with respect to shareholders. SEC. 534. BURDEN OF PROOF,

(a) GENERAL RULE.-In any proceeding before the Tax Court involving a notice of deficiency based in whole or in part on the allegation that all or any part of the earnings and profits have been permitted to accumulate beyond the reasonable needs of the business, the burden of proof with respect to such allegation shall

(1) if notification has not been sent in accordance with subsection (b), be on the Secretary or his delegate, or

(2) if the taxpayer has submitted the statement described in subsection (c), be on the Secretary or his delegate with respect to the grounds set forth in such statement in accordance with the provisions of such subsection.

(b) NOTIFICATION BY SECRETARY.-Before mailing the notice of deficiency referred to in subsection (a), the Secretary or his delegate may send by certified mail or registered mail a notification informing the taxpayer that the proposed notice of deficiency includes an amount with respect to the accumulated earnings tax imposed by section 531. In the case of a notice of deficiency to which subsection (e) (2) applies and which is mailed on or before the 30th day after the date of the enactment of this sentence, the notification referred to in the preceding sentence may be mailed at any time on or before such 30th day.

(c) STATEMENT BY TAXPAYER.— Within such time (but not less than 30 days) after the mailing of the notification described in subsection (b) as the Secretary or his delegate may prescribe by regulations, the taxpayer may submit a statement of the grounds (together with facts sufficient to show the basis thereof) on which the taxpayer relies to establish that all or any part of the earnings and profits bave not been permitted to accumulate beyond the reasonable needs of the business.

(d) JEOPARDY ASSESSMENT.—If pursuant to section 6861 (a) a jeopardy assessment is made before the mailing of the notice of deficiency referred to in subsection (a), for purposes of this section such notice of deficiency shall, to the extent that it informs the taxpayer that such deficiency includes the accumulated earnings tax imposed by section 531, constitute the notification described in subsection (b), and in that event the statement described in subsection (c) may be included in the taxpayer's petition to the Tax Court. (e) APPLICATION OF SECTION.

(1) Notwithstanding any other provision of law, this section shall apply with respect to taxable years to which this subchapter applies and (except as provided in paragraph (2)) to taxable years to which the corresponding provisions of prior revenue laws apply.

(2) In the case of a notice of deficiency for a taxable year to which this subchapter does not apply, this section shall apply only in the case of proceedings tried on the merits after the date of the enactment of this paragraph.

« iepriekšējāTurpināt »