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SCRIPTA

REGISTER

FEDERAL!
VOLUME 2

1934
ii/yjTEO

NUMBER 109

W ashington, Tuesday, June 8, 1937
T . D. 4741

TREASURY DEPARTMENT.
Bureau o f Internal Revenue.
fT. D. 4740T

A uthorizing E xem ption P rom S tamp T ax on P assage T ickets to C ertified P ersons A ttending the B o y S coot W orld Jamboree i n the N etherlands
To Collectors of Internal Revenue and Others Concerned:
The Act o f A pril 17, 1937 Public No. 40, 75th Congress, 1st Session provides, in part, as follows:
That the Commissioner ol Internal Revenue be, and he is hereby, authorized under suchr rules and regulations as he shall promulgate to remit the tax on steamship tickets to bona-fide Scouts and Scouters certified by the National Council, Boy Scouts of America, attending this Jamboree.

In pursuance o f these provisions the follow ing regulations are promulgated:
The stamp tax imposed by Schedule A-5, T itle V ill of the Revenue Act of 1926, as amended by section 442 of the Reve nue Act of 1928, sbftll not apply to any passage ticket issued to any person who has been certified by the National Council, Boy Scouts of America, as being a bona fide Scout or Scouter attending the W orld Jamboree to be held in the Netherlands during the months o f July and August, 1937.
The certification shall be in the form o f an official certifi cate of identification, in duplicate, bearing the seal of the Boy Scouts of America and the facsim ile signature of the President of that organization, certifying that such Scout or Scouter named in the certificate is a member of the W orld Jamboree contingent.
Upon presentation of the identification certificate to the steamship company, the passage ticket may be issued free of tax, the duplicate certificate of identification being retained by the steamship company. In all such cases a notation shall be made on the passenger manifest, indicating why no tax was paid.
This Treasury Decision is issued under the authority con tained in section 1101 o f the Revenue A ct of 1926, and pur suant to the provisions of the Act of A pril 17, 1937, Public No. 40, 75th Congress, 1st Session.

seal
G u y T . H elvering , Commissioner of Internal Revenue.

Approved: June 3, 1937.
R osw ell M agill ,
Acting Secretary of the Treasury.
P . R. Doc. 37-1661; Plied, June 5,1937; 10:07 a. m .

E xcess P rofits O n N avy C ontracts EXPENSES OF ADMINISTRATION SELLING, BIDDING AND SERVICING
EXPENSES AND SELF-INSURANCE

To Officers and Employes of the Treasury Department, the Navy Department, and others concerned:
A rticle 8 g o f Treasury Decision 4723,1 relating to ex penses o f a d m inistratio n , is amended to read as follow s:
g Expenses of administration. Expenses of administration, usually termed "administrative overhead, which are treated in t/hig article as a part of general expenses in determining the c t of performing a contract or subcontract see paragraph b of this article comprehend the expenses incident to and necessary for the performance of the contract or subcontract, which are in curred in the general administration of the business, such as 1 Compensation for personal services of employees. The salaries of the corporate and general executive officers and the salaries and wages of administrative clerical employees and of the office services employees telephone operators, janitors, cleaners, watchmen and office equipment repairm en.
2 Selling including bidding and servicing expenses. In lieu of direct charges for selling expenses including bidding expenses or for servicing expenses incident to delivered or Installed articles, there may be allocated to the cost of perform ing a contract or subcontract the proportions of such expenses which by reference to all the pertinent facts and circumstances reasonably constitute a part of such cost. For the purposes of this method of treating selling and bidding expenses, the total of such allowable expenses which may be the basis of an alloca tion to the cost of performing a contract or subcontract shall include aU expenditures in connection w ith preparing and sub mitting bids or other work incident to a prospective contract or subcontract.
3 Other expenses. Miscellaneous office and administrative expenses, such as stationery and office supplies, postage, repair n-nri depreciation of office equipment, employees welfare ex penses, premiums and dues on compensation insurance; em ployers payments to unemployment, old age and social security Federal and State funds not including payments deducted from or chargeable to employees or officers; pensions and retirement payments to administrative office employees and accident com pensation to office employees as to self-insurance, see the fo l lowing subparagraph ; b u t including no items which are not incidental to activities necessary for the performance of the con tract or subcontract.
Subject to the exception stated in this subparagraph, in cases where a contracting party assumes its own insurable risks usually termed self-insurance , losses and payments will be allowed in the cost of performing a contract or subcontract only to the extent of the actual losses suffered or payments incurred during, and in the course of, the performance of the contract or subcontract and properly chargeable to such contract or subcontract. If a contract ing party assumes its own insurable risks a for compensation paid to employees for injuries received in the performance of their duties, or b for unemployment risks in States where insurance is required, there may be allowed as a part of the cost of performing a contract or subcontract a reasonable portion of the charges set up for purposes of self-insurance under a system of accounting regularly employed by the contracting party, as determined by the 12 F. R. 51.

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