Section 10
SEC. 10. Subsection (b) of section twenty-five of the same Act is hereby amended to read as follows: "(b) Any distribution made to the shareholders or members of a corporation, joint-stock company, partnership, joint account (cuenta en participacion), association, or insurance company in the year nineteen hundred and twenty, or subsequent tax years, shall be deemed to have been made from the most recently accumulated profits or surplus, and shall constitute a part of the annual income of the distributee for the year in which received, and shall be taxed to the distributee at the rates prescribed by law for the years in which such profits or surplus were received: Provided, That in the case of stock dividends, the tax thereon shall be collected in accordance with the rates prescribed by law for the years in which the earnings or profits distributed in the shape of such dividends were accumulated: Provided, further, That nothing herein shall be construed as taxing any earnings or profits accrued prior to March first, nineteen hundred and thirteen, but such earnings or profits may be distributed in stock dividends or otherwise, exempt from the tax, after the distribution of earnings and profits accrued since March first, nineteen hundred and thirteen, has been made."