INCOME TAX 59 (d) DEFINITION OF "AFFILIATED GROUP". -As used in this section an "affiliated group" means one or more chains of corporations con- nected through stock ownership with a common parent corporation if- (1) At least 95 per centum of the stock of each of the corpora- tions (except the common parent corporation) is owned directly by one or more of the other corporations; and (2) The common parent corporation owns directly at least 95 per centum of the stock of at least one of the other corporations; and (3) Each of the corporations is either (A) a corporation whose principal business is that of a common carrier by railroad or (B) a corporation the assets of which consist principally of stock in such corporations and which does not itself operate a business other than that of a common carrier by railroad. For the pur- pose of determining whether the principal business of a corpora- tion is that of a common carrier by railroad, if a common carrier by railroad has leased its railroad properties and such properties are operated as such by another common carrier by railroad, the business of receiving rents for such railroad properties shall be considered as the business of a common carrier by railroad. As used in this paragraph, the term "railroad" includes a street, suburban, or interurban electric railway, or a street or suburban trackless trolley system of transportation, or a street or suburban bus system of transportation operated as part of a street or sub- urban electric railway or trackless trolley system. As used in this subsection (except in paragraph (3)) the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. (e) FOREIGN CORPORATIONS.-A foreign corporation shall not be deemed to be affiliated with any other corporation within the meaning of this section. (f) CHINA TRADE ACT CORPORATIONS.- A corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S . C., Title 15, c. 4), shall not be deemed to be affiliated with any other corporation within the meaning of this section. (g) CORPOIATIONS DERIVING INCOME FROM POSSESSIONS OF UNITED STATES. -For the purposes of this section a corporation entitled to the benefits of section 251, by reason of receiving a large percentage of its income from possessions of the United States, shall be treated as a foreign corporation. (h) SnBSIDIARY FORMED TO COMPLY WITH FOREIGN LAw. -In the case of a domestic corporation owning or controlling, directly or indirectly, 100 per centum of the capital stock (exclusive of directors' qualifying shares) of a corporation organized under the laws of a contiguous foreign country and maintained solely for the purpose of complying with the laws of such country as to title and operation of property, such foreign corporation may, at the option of the domestic corporation, be treated for the purpose of this chapter as a domestic corporation. (i) SUSPENSION OF RUNNING OF STATUTE OF LIMITATIONS.- If a notice under section 272 (a) in respect of a deficiency for any tax- able year is mailed to a corporation, the suspension of the running of the statute of limitations, provided in section 277, shall apply in the case of corporations with which such corporation made a con- solidated return for such taxable year. (j) RECEIVERrsm CASES.-If the common parent corporation of an affiliated group making a consolidated return would, if filing a sepa- rate return, be entitled to the benefits of section 13 (e), the affiliated group shall be entitled to the benefits of such subsection. In all
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