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Accumulations accruing to corporation through surplus earnings or appreciation in property value prior to March 1, 1913, are capital and not income.-Southern Pacific Co. v. Lowe, 247 U. S. 330 (T. D. 2730).

Dividends of a corporation paid to shareholders after March 1, 1913, whether from current earnings or from surplus accumulated before that date, held taxable to shareholders as income under the "surtax" provision. (Lynch v. Turrish, 247 U. S. 221 and Southern Pac. Co. v. Lowe, 247 U. S. 330, distinguished.)-Lynch v. Hornby, 247 U. S. 339 (T. D. 2731).

A dividend by a corporation of shares owned by it in another corporation is not a stock dividend and is subject to tax like an equivalent distribution of money. (Towne . Eisner, 245 U. S. 418, distinguished; Lynch v. Hornby, 247 U. S. 339, affirmed.)-Peabody v. Eisner, 247 U. S. 347 (T. D. 2732).

Dividends, by subsidiaries to a company holding all their stock and controlling them in conducting a single enterprise, out of earnings accumulated prior to January 1, 1913, are not taxable as income.-Gulf Oil Corp. v. Lewellyn, 248 U. S. 71 (T. D. 2783).

INTERNAL REVENUE LEGISLATION.

The Revised Statutes were compiled under an act of June 27, 1866 (14 Stat., 74).

A list of acts respecting internal-revenue duties, from the first act (act of March 3, 1791) to April 28, 1828, is published in United States Statutes at Large, Volume 1.

ACTS OF CONGRESS RELATING TO INTERNAL REVENUE ENACTED SINCE JULY 4, 1861, AND BEFORE DECEMBER, 1873,

[Not including private acts, nor appropriation acts passed prior to the enactment of the Revised Statutes, June 22, 1874.]

REVISED STATUTES, TITLE XXXV, SECTIONS 3140–3465.

No reference can be had to the original statutes to control the construction of any section of the Revised Statutes when its meaning is plain, but where there is a substantial doubt as to the meaning of the language used in the revision the old law is a valuable source of information. (United States v. Bowen, 100 U. S., 508, 513; United States v. Lacher, 134 U. S., 624.) In construing any part of the Revised Statutes it is admissible and often necessary to recur to its connection in the act of which it was originally a part. (United States v. Hirsch, 100 U. S., 35.)

In case of ambiguous language in the Revised Statutes or uncertainty as to the true construction to be given to the words of any section, previous acts on the same subject may be referred to and examined for light on the object and intent of Congress as shown by the course of legislation, in the same manner as statutes in pari materia relating to the same subject may always be taken, compared, and construed together. (Wright v. United States, 15 Ct. Cls., 87. See also United States v. Claflin, 97 U. S., 546, and opinion of First Comptroller Porter in Kansas claim for 5 per cent net proceeds of public lands, 1 Lawrence Dec., 43.)

No inference or presumption of a legislative construction is to be drawn by reason of the title under which any particular section is placed. (Sec. 5600, R. S.)

An act to provide increased revenue from imports, to pay interest on the public debt, and for other purposes, approved August 5, 1861 (12 Stat., 292.) See act June 7, 1862 (12 Stat., 422).

Direct tax and income. The act of March 2, 1891 (26 Stat., 822), authorized the return to the States of the direct tax collected.

An act to provide internal revenue to support the Government and to pay interest on the public debt, approved July 1, 1862 (12 Stat., 432).

Office of Internal Revenue created.

Income tax.-Under this act the tax was 3 per cent on incomes over $600 and not over $10,000; over $10,000, 5 per cent. Act of March 3, 1865, over $600 and not over $5,000, 5 per cent; over $5,000, 10 per cent on excess over $5,000. Act of March 2, 1867, over $1,000. 5 per cent. Act of July 14, 1870, over $2,000, 24 per cent. Income tax expired by limitation December 31, 1871. No income tax was collected under the act of June 30, 1864, as it was amended by the act of March 3, 1865, before it was collectible.

Imposed tax on cotton.

On this date Congress convened in its first (extraordinary) session after the com mencement of the War of the Rebellion, at which session was commenced the legislation which has since produced the present system of internal revenue taxation,

An act increasing temporarily the duties on imports, and for other purposes, approved July 14, 1862 (12 Stat., 543, 560).

Sections 24 and 25 relate to internal revenue.

An act to impose an additional duty on sugars produced in the United States, approved July 16, 1862 (12 Stat., 588).

Joint resolution to amend section 77 of "An act to provide internal revenue to support the Government and to pay interest on the public debt," and for other purposes, approved July 17, 1862 (12 Stat., 627.)

An act to amend an act entitled "An act to provide internal revenue to support the Government and to pay interest on the public debt," approved July 1, 1862. Approved December 25, 1862 (12 Stat., 632).

An act to provide ways and means for the support of the Government, approved March 3, 1863 (12 Stat., 709).

Section 7, bank circulation.

An act to amend an act entitled "An act to provide internal revenue to support the Government and [to] pay interest on the public debt," approved July 1, 1862, and for other purposes. Approved March 3, 1863 (12 Stat., 713).

An act to prevent and punish frauds upon the revenue, to provide for the more certain and speedy collection of claims in favor of the United States, and for other purposes, approved March 3, 1863 (12 Stat., 737).

Joint resolution to provide for the printing annually of the report of the Commissioner of Internal Revenue, approved January 13, 1864 (13 Stat., 400).

An act to increase the internal revenue, and for other purposes, approved March 7, 1864 (13 Stat., 14).

An act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes, approved June 30, 1864 (13 Stat., 223).

Inspection stamps required on cigars. No money value.

Joint resolution imposing a special income duty [for the year ending December 31 next preceding October 1, 1864], approved July 4, 1864 (13 Stat., 417).

An act to amend an act entitled "An act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes," approved June 30, 1864. Approved December 22, 1864 (13 Stat., 420).

An act to amend an act entitled "An act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes," approved June 30, 1864. Approved March 3, 1865 (13 Stat., 469).

Inspection stamps required on tobacco and snuff. No money value. An act amendatory of certain acts imposing duties upon foreign importations, approved March 3, 1865 (13 Stat., 491).

An act authorizing the Secretary of the Treasury to appoint assistant assessors of internal revenue, approved January 15, 1866 (14 Stat., 2).

An act to declare the meaning of certain parts of the internalrevenue act, approved June 30, 1864, and for other purposes. Approved March 10, 1866 (14 Stat., 4).

An act to reduce internal taxation and to amend an act entitled "An act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes," approved June 30, 1864, and acts amendatory thereof. Approved July 13, 1866 (14 Stat., 98).

First act reducing taxation. Stamps first required on fermented liquors.
Changing "Licenses" to "Special taxes."

An act to authorize the refunding of certain taxes, approved July 27, 1866 (14 Stat., 301).

An act amendatory of section 13 of an act entitled "An act to amend an act entitled 'An act to provide internal revenue to support th Government, to pay interest on the public debt, and for other purposes,' approved June 30, 1864," approved March 3, 1865. Approved July 27, 1866 (14 Stat., 301).

Joint resolution to prevent the further enforcement of the joint resolution (No. 77) approved July 4, 1864, against officers and soldiers of the United States who have been honorably discharged, so as to relieve them from the further payment of the special 5 per cent income tax imposed thereby, approved July 28, 1866 (14 Stat., 371). Joint resolution to amend existing laws relating to internal revenue, approved February 5, 1867 (14 Stat., 565).

A resolution to provide in certain cases for the removal of alcohol from bonded warehouses free from internal tax, approved February 18. 1867 (14 Stat., 565).

An act to amend existing laws relating to internal revenue, and for other purposes, approved March 2, 1867 (14 Stat., 471).

Reduced taxes.

An act to exempt wrapping paper made from wood or cornstalks from internal tax, and for other purposes, approved March 26, 1867 (15 Stat., 6).

An act to prevent frauds in the collection of tax on distilled spirits, approved January 11, 1868 (15 Stat., 34).

Prohibits removal of spirits from warehouse for the purpose of transportation, redistillation, or rectification, change of package, or for any other purpose, until the full tax has been paid.

An act to provide for the exemption of cotton from internal tax, approved February 3, 1868 (15 Stat., 34).

Reduced taxes by repealing cotton tax.

Joint resolution to provide for a commission to examine and report on meters for distilled spirits, approved February 3, 1868 (15) Stat., 246).

An act to exempt certain manufactures from internal tax, and for other purposes, approved March 31, 1868 (15 Stat., 58).

Reduced taxes.

An act for the relief of certain exporters of rum, approved June 25, 1868 (15 Stat., 78).

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