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Exhibit D
Page 1 of 20

1924 AT

101

1 [(3) The term cash dividends" includes dividends 2 paid in interest-bearing scrip, if subject to las in the hands of 3 the distributees to the same extent as a dividend paid in cash.]

CONDITIONAL AND OTHER EXEMPTIONS OF OORPORATIOSS.

5

Sec. 231. The following organizations shall be exempt

6 from taxation under this title

7 (1) Labor, agricultural, or horticultural organizations ;
8 (2) Mutual savings banks not having a capital stock
9 represented by sbares;
10 (3) Fraternal beneficiary societies, orders, or associa:
11 tions, (a) operating ander the lodge system or for the es-
12 clasive benefit of the members of a fraternity itself oper-
1.? ating ander the lodge system; and (b) providing for the
It payment of life, sick, accident, or other benefits to the mem-
;; bers of such society, order, or association of their dependents;

(4) Domestic building and loan associations sabsten!7 dially all the businose of which is confined to making loans.to 18 members; and cooperative banks without capital stock ar19 ganized and operated for mutual purposes and without profit; 20 (5) Cemetery companies owned and operated es. 21 clusively for the benefit of their members or which are not 22 operated for profit; and any corporation chartered solely for burial

purposes as a cemetery corporation and not permitted 4 by its charter to engage in any business not necessarily inci

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Exhibit D
Page 2 of 20

103

1 (10) [Famiers'] BEXEVOLENT LIFE LYSUR2 ANCE ASSOCIATIONS OF · A PI°RELY LOCAL 3 CHARACTER, FARMERS' or other mutual buil, cyclone, 4 casualty. (76)[life.] or fire insurance companies, mutual 5 ditch or irrigation companies, mutual or cooperative tele6 phone companies. (17)[or Crnwally or fire reciprocal or in7 terinsurance erchanges.] or like organizations; but only if 8 (78) ultantially all 65 per centum or more of tbe income 9 consists of amounts collected from menibers for obe sole pur10 pose of meeting losses and expedres; (79) atau benerntent 11 Ayutuet life in tipette Associations not operated for profit. 12 whose business is purely free and well for benefit of its

13 members,

14

(11) Farmers', fruit growers', or like associations, 15 organized and operated as sales agents for the purpose of 16 marketing the products of members and turning back to 17 them the proceeds of sales, less the necessary selling es: 18 penses, on the basis of the quantity of produce furnished by 19 them; or organized and operated as purcbasing agents for 20 the purpose of purchasing supplies and oquipment for the

use of members and turning over such supplies and equip22 'ment to such members at actual cost, plus necessary oz

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(12). Corporations organized for the exclusive purpose of holding title to property, collecting income therefrom, and

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Exhibit D
Page 4 of 20

221

ita

hand at the end of the year is rouided to meet loance and aspanos of is returned to memben

The phrase "of a purely local character" applies to benevolent lito
Insurance wsciations, and not to the ocbor organizacions specified in
Ketics 101 (10). It applies bowever, to any organization wabong

Temption on the ground that it is an organization amilar to be
Krolent lite inerve issociation. An orgnaisation of a paraly local
chandter is odo wbore business activities in confined to a particular
community, place, or dikrict, istospective bowever, of political mob
dinsons It be activities of an organization are limited only by
ibe borders of a Suce it cannot be considered to be parely local in
chander
(SEC. 101. EXINPTIONS NON TAX ON COVORATIONS.)

Itbe follomlag Ordstions about be dempe trou muito mader
i riu)

(11) nrber' or other botol ball, cyclone, casualty, or are
Doan de companies or lesocha doas (lascidding louertorren add
moeiprocal anderwriters) (be forces of obscb in sand or held for

the purpose of pering loss or asperset. An. 101(111etinere' e sbor Butwal bath, cyclone, assalty. or dre ingurore companies ar skociations - To be osempt under section 20711) ehe business of the organization must be purely mutuel and tis income must be used or beld wolely for the purpose of peying losses or expenses. Neilber ebe ertant of ebe lorricory in which tho raupeny may properly operace Dor the fact that it wompus premium deposits instead of assessments is docinto w to its csemprion The miing of donmutual insurance regardless of amount will deprive . company of the exemption

The term "casually as used in action 101(11) is limited to those forms of indemnity insurudce providing for payment of loan or dam. 47 to propery or personal injury to third persons roulting from accident or some rucb unaoticipated contingency orber than in or the Fements and does do include indemnity from loes through socidade resulting in bodily nojury to, uz daneb of, the insured. [SEC. 101. EXEMPTIONS NOx tato cortowa) [TDe lo lowos orguladons shall be an ape broe undor under

1121 Tormers, frost growers'. of lite annorle Sons organised and operaced on a coopenure beds (a) for the purpose of marketing be prodorus a member or other prodoren, and to maing back to than the proceede of ales, ten the secesary marietlog expenses osebe beds of elber the preddy or the malore of the prodorus furniaded by them or (b) for the parpone of parebuning mapplica And wpment for tbe me pemben os ocher persone Lad raro

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An. 101(11)-1

| 101

Exhibit D
Page 5 of 20

Internal Revenue Code

1939

Printed as VOL 53, Part 1, U. S. Statuies di Lorge,

76th Congress, First Session

C

L'nited Suted Goverdment Prioting Office, Tobington, 1939

Tamh by the superstradeas of Derrada Tuhansien D. c . ne. Paper anar 11.00. Bochna urn 11.73

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