In general
(a) For purposes of this Part in the case of the income taxes imposed by the Virgin Islands income tax law, the term “deficiency” means the amount by which the tax imposed by the Virgin Islands income tax law exceeds the excess of—
(1) the sum of
(A) the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer, and an amount was shown as the tax by the taxpayer thereon, plus
(B) the amounts previously assessed (or collected without the assessment) as a deficiency, over—
(2) the amount of rebates, as defined in subsection (b)(2) of this section, made.
Rules for application of subsection (a)
(b) For purposes of this section—
(1) the tax imposed by chapter 1 of the Virgin Islands income tax law and the tax shown on the return shall both be determined without regard to the credit under section 31 of the Virgin Islands income tax law, and without regard to so much of the credit under section 32 of that law as exceeds 2 percent of the interest on obligations described in section 1451 of that law.
(2) The term “rebate” means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed by the Virgin Islands income tax law was less than the excess of the amount specified in subsection (a)(1) of this section over the rebates previously made.
(3) The computation by the Director, pursuant to section 718 of this title, of the tax imposed by chapter 1 of the Virgin Islands income tax law shall be considered as having been made by the taxpayer and the tax so computed considered as shown by the taxpayer upon his return.