885

If either the donor or recipient is a corporation (other than a corporation organized for a public or charitable purpose, no part of whose profits accrues to the benefits of any individual), there shall be levied in lieu of the tax imposed by § 884 of this title a tax of sixty percent (60%) of the net amount of such gift; Provided, That where it is shown to the satisfaction of the Secretary of the Treasury of Puerto Rico that the gift is made for a legitimate purpose, and not for the purpose of evading the taxes levied under §§ 881—905 of this title or the taxes levied under the Income Tax Law, there shall be no obligation to pay any tax under this section, but taxes shall be paid under § 884 of this title. A uniform distribution by a corporation to its stockholders, or a uniform assessment or contribution to the corporation shall not be considered a gift, but if a corporation having more than one class of stock makes a distribution not properly reflecting the investment and interests of the various classes of stockholders so as to constitute a substantial shift in equity from one class to the other, the Secretary of the Treasury may declare such distribution to be a gift for the

of the various classes of stockholders so as to constitute a substantial shift in equity from one class to the other, the Secretary of the Treasury may declare such distribution to be a gift for the purposes of §§ 881—905 of this title. History —Apr. 12, 1946, No. 303, p. 782, § 6, retroactive to Mar. 22, 1946.