286 SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. IN°°’—¤ MX- shall be deducted and withheld at the source in the same manner "'”"p‘m‘ and upon the same items of income as is provided in section 221 a R°t°‘ tax equal to 12% per centum thereof, and such tax shall be returned _ and paid in the same manner and subject to the same conditions as {,'$§”°gg gm, mm provided in that section: Provided, That in the case of interest de- ¤¤· scribed in subdivision (b) of that section the deduction and withholding shall be at the rate of 2 per centum. °'°di"°' °“°°’ CREDIT ron mxns IN casn or CORPORATIONS. ¤<i¤i;m°m° comm- Sec. 238. (a) In the case of a domestic corporation the tax immggd °° '°"ig° °°°°` posed by this title shall be credited with the amount of any income, war-proiits, and excess-profits taxes paid or accrued during the same taxable year to any foreign conmtry, or to any possession of the imiiiiiieu. United States: Provided, That the amount of such credit shall m no case exceed the same proportion of the tax (computed on the basis of the taxpayer’s net income without the deduction of any income, war-profits, or excess-profits taxes imposed by any foreign country or possession of the United States), against which such credit is taken, which the taxpayer’s net income (computed without the deduction of any such income, war-profits, or excess-profits tax) from sources without the United States bears to its entire net income (commgiic ¤gf¤¤°ii; puted without such deduction) for the same taxable year. In the P¤¤i°°- case of domestic insurance companies subject to the tax imlpglsed by section 243 or 246, the term “ net income " as used in this su `vision Redgfgrgiigwgog means net income as defined in sections 245 and 246, respectiyely. i:i•¥aii°a¤1m¤¤.°r (b) If accrued taxes when paid differ from the amounts claimed as credits by the corporation, or if any tax paid is refrmded in whole or in part, the corporation shall at once notify the Commissioner, who shall redetermine the amount of the taxes for the year or years affected, and the amount of taxes due Lpon such redetermination, if any, shall be paid by the cor oration upon notice and demand b the collector, or the amount of) taxes overpaid, if any, shall be cred¥ rummauuz not ited, or refunded to the corporation in accordance with the provi- Pm- sions of section 281. In the case of such a tax accrued but not aid, smc required before the Commissioner as a condition precedent to the allowance ofp this ¤“°"°°°°- credit may require the corporation to give a bond with sureties satisfactory to and to be applroved by him in such sum as he may require, conditioned upon the payment by the taxpayer of any amount . of taxes found due upon any such redetermination; and the bond herein prescribed shal contain such further conditions as the Com- Credits for taxes. al- IDlSSl0I1€I' may I‘€ql1lI‘€. }fc{_'r*]1‘Ld_‘” “‘° ’°°' (c) The credits provided for in subdivision (a) of this section may, at the option of the taxpayer and irrespective of the method of accounting employed in keeping its books, be taken in the year in which the taxes of the foreign country or the possession of the same:. United States accrued, subject, however, to the conditions prescribed in subdivision (b) of this section. If the taxpayer elects to take such credits in the fyear in which the taxes of the foreign country or the possession o the United States accrued, the credits for all Emma of mmm subsequent years shall be taken upon the same basis. iecommquima. (d) These credits shall be allowed only if the taxpayer furnishes evidence satisfactory to the Commissioner showing the amount of income derived from murces without the United States, and all other mformation necessary for the verification and computation of _ Domestic corpora- such Credlh _
¢>¤¤*¤>“*¤€ *°*· (e) For the purposes of this section a domestic corporation which
owns a_ma]ority of the voting Stock of a foreign corporation from which it receives dividends (not deductible under section 234) in
