6
7
8
9 for which (a) it files a return at the time and place pro-
10
vided in section 241. made in the manner provided in sec-
18
1 preparations, and for other purposes," approved December
2 17, 1914, as amended.
3
4
Sec. 23. (a) That section 231 of the Revenue Act of 1918 is amended by striking out the period at the end
5 thereof, inserting in lieu thereof a semicolon, and adding a
new subdivision to read as follows:
"(15) A corporation organized under the China Trade
Act, 1921, but only if and with respect to any taxable year
19
1 approval of the Secretary of the Treasury shall make all
2 regulations necessary for the determination of such exemp-
3
4
tion, and of the liability of shareholders or members to
taxation in respect to dividends paid by such corporation."
5
(b) Section 1 of the Revenue Act of 1918 is amended
6 by adding at the end thereof a new paragraph to read as
7 follows:
8
"A corporation organized under the China Trade Act,
9 1921, shall for the purposes of this Act be considered a
10 domestic corporation."
620
11
11
tion 239, and containing such information as the Commis-
(c) Sections 232, 233, and 234 of the Revenue Act
12
12
13
sioner of Internal Revenue, with the approval of the Secre- tary of the Treasury, may by regulation prescribe; (b) it
of 1918 are amended by inserting in each of such sections
13
after the words "corporation subject to the tax imposed by
14 declares dividends during the taxable year in an amount 15 equal to one-third of its net income the payment of which 16 not later than sixty days after the close of such taxable year
17
is assured in such manner as the Commissioner of Internal
18 Revenue, with the approval of the Secretary of the Treasury,
19 may require; (c) it derives less than 5 per centum of its
(d) Section 240 of the Revenue Act of 1918 is
amended by adding at the end thereof a new subdivision to
read as follows:
"(d) A corporation organized under the China Trade
20 Act, 1921, shall not be deemed to be affiliated with any
14
15
section 230", the words " 'or organized under the China
Trade Act, 1921".
16
17
18
19
20
gross income from sources within the United States; and
21
21
(d) the Secretary of Commerce certifies to the Commis-
other corporation within the meaning of this section."
22
22
sioner of Internal Revenue that during the taxable year the 23 corporation in all respects has complied with the provisions 24 of the China Trade Act, 1921, and regulations made there- 25 under. The Commissioner of Internal Revenue with the
24
25 imposed by this title, every personal service corporation,
(e) Section 254 of the Revenue Act of 1918 is
23 amended to read as follows:
"SEC. 254. That every corporation subject to the tax