TABLE C.-Consolidated income and profits tax returns-provisions for filing and tax rates under the Federal tax laws for the income years 1917 through 1948-Continued

(1) Domestic corporations Same as for 1929-31.
whose principal business
was that of a "common
carrier by railroad" or (2)
domestic corporations
whose assets consisted
principally of stock in such
corporation and which did
not operate business other
than that of a "common
carrier by railroad" and
(3) foreign corporations
organized to comply with
laws of contiguous coun-
tries. Excluded: (a) Cor-
porations organized under
the China Trade Act, 1922
and (b) corporations sub-
ject to sec. 251 (relative to
income from sources with-
in possessions of the
United States).
Same as for 1934-35 except
that the term "railroad"
included street, suburban,
or interurban electric rail-
ways.

Same as for 1936-37 except
that the term "railroad"
included a street or subur-
ban trackless trolley sys-
tem of transportation, or
a street or suburban bus
system of transportation
operated as part of a street
or suburban electric rail-
way or trackless trolley
system.

do

Same as for 1938-39 except
that the privilege was ex-
tended to Pan-American
trade corporations.

For common carriers same as 1938-39. For Pan-American trade corporations: A domestic corporation engaged in active conduct of trade or business in the United States and owning directly 100 percent of the capital stock of one or more domestic corporations each of which was engaged solely in the active conduct of trade or business in Central or South America (hereafter referred to as a Pan-American trade corporation). Such corporations (including the parent corporation) were deemed to be an affiliated group provided that (1) at least 80 percent of the gross income for the taxable year of the parent corporation was derived from sources other than royalties, rents, dividends, interest, annuities, and gain from the sale or exchange of stock or securities; and (2) at least 90 percent of the gross income for the taxable year of each of the PanAmerican trade corporations was derived from sources other than the sources listed under (1); and (3) no part of the gross income for the taxable year of any of the Pan-American trade corporations was derived from sources within the United States.

TABLE C.-Consolidated income and profits tax returns provisions for filing and tax rates under the Federal tax laws for the income years 1917 through 1948-Continued

Type of corporation per-
mitted to file a consoli-
dated return

Any corporation except:
(1) Corporations exempt
from the excess profits
tax under Second
Revenue Act of 1940.
(2) Foreign corporations
other than certain Ca-
nadian and Mexican
corporations.7
(3) Corporations organ-
ized under the China
Trade Act, 1922.
(4) Corporations subject
to section 251 (relative
to income from sources
within possessions of
the United States).
(5) Personal service cor-
porations.

(6) Life and mutual in-
surance companies,
but they were consid-
ered as includible cor-
porations if two or
more such domestic
companies alone filed
a consolidated return
and each was subject
to tax under the same
section of chapter 1 of
the Code.

Criterion of affiliation

Consolidated return required
or optional

Tax rate

One or more chains of includible cor-
porations connected through stock
ownership with a common parent
corporation which was an includible
corporation, if (1) at least 95 percent
of each class of the stock of each of
the includible corporations (except
the common parent corporation)
was owned directly by one or more
of the other includible corporations,
and (2) the common parent corpo-
ration owned directly at least 95 per-
cent of each class of the stock (exclu-
sive of nonvoting stock which is
limited and preferred as to divi-
dends) of at least one of the other
includible corporations.

Optional for 1940. Option
granted anew for 1941.

Same as for non-
consolidated re-
turns. (See
table A, pp. 452-
459.)

1942 (Oct. 21, 1942). 1942-43 Income tax, and excess

profits tax under sec. 710 of Code.

1943 (Feb. 25, 1944).. 1944-45 Same as 1942-43.

For footnotes, see p. 476.

Any corporation 10 except:

(1) Corporations exempt

under Code sec. 101.
(2) Life and mutual in-
surance companies,
but they were consid-
ered as includible cor-
porations if two or
more such companies
alone filed a consoli-
dated return and each
was subject to tax un-

der the same section of
chapter 1 of the Code.
(3) Foreign corporations
other than certain Ca-
nadian and Mexican
corporations."
(4) Corporations subject
to section 251 (relative
to income from sources
within possessions of
the United States).
(5) Corporations organ-
ized under the China
Trade Act, 1922.
(6) Regulated invest-
ment companies (tax-
able under supple-
ment Q of Code).
Any corporation 10 except:
(1) through (6) same as
1942-43.

(7) Personal service cor-
porations, personal
holding companies,
foreign trade corpora-
tions as defined in
Code section 727(g),
and certain air mail
carriers as defined in
Code section 727(h);
but such a corporation
may be included in a
consolidated return if
it has filed a consent
to be treated as an
includible corporation.

One or more chains of includible cor-
porations connected through stock
ownership with a common parent
corporation which is an includible
corporation if (1) stock possessing
at least 95 percent of the voting
power of all classes of stock and at
least 95 percent of each class of the
non-voting stock of each of the in-
cludible corporations (except the
common parent corporation) is
owned directly by one or more of
the other includible corporations;
and (2) the common parent corpo-
ration owns directly stock pos-
sessing at least 95 percent of the
voting power of all classes of stock
and at least 95 percent of each class
of the non-voting stock of at least
one of the other includible corpora-
tions. The term "stock" does not
include non-voting stock which is
limited and preferred as to divi-
dends.

Same as 1942-43.

TABLE C.-Consolidated income and profits tax returns-provisions for filing and tax rates under the Federal tax laws for the income years 1917 through 1948-Continued