Page:United States Statutes at Large Volume 100 Part 3.djvu/520

 100 STAT. 2328

PUBLIC LAW 99-514—OCT. 22, 1986 "(I) IN GENERAL.—50 percent of any withholding tax paid to a possession of the United States with respect to dividends referred to in clause (i) (to the extent such dividends do not exceed the excess referred to in paragraph (1), determined without regard to clause (i)) shall, for purposes of this part, be treated as a tax paid by the corporation receiving the dividend to a foreign country. "(II) TREATMENT OF TAXES IMPOSED ON 936 COR-

PORATION.—For purposes of this subparagraph, taxes paid by any corporation eligible for the credit provided by section 936 to a possession of the United States, shall be treated as a withholding tax paid with respect to any dividend paid by such corporation to the extent such taxes would be treated as paid by the corporation receiving the dividend under rules similar to the rules of section 902. "(G)

RULES FOR ALASKA NATIVE CORPORATIONS.—The

amount determined under subparagraph (A) shall be appropriately adjusted to allow: '(i) cost recovery and depletion attributable to property the basis of which is determined under section 21(c) of the Alaska Native Claims Settlement Act (43 U.S.C. 1620(c)), and "(ii) deductions for amounts payable made pursuant to section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i) and 1606(j)) only at such time as the deductions are allowed for tax purposes. "(H) SECRETARIAL AUTHORITY TO ADJUST ITEMS.—Under

regulations, adjusted net book income shall be properly adjusted to prevent the omission or duplication of any item. "(3) APPLICABLE FINANCIAL STATEMENT.—For purposes of this subsection— "(A) IN GENERAL.—The term 'applicable financial statement' means, with respect to any taxable year, any statement covering such taxable year— "(i) which is required to be filed with the Securities and Exchange Commission, "(ii) which is a certified audited income statement to be used for the purposes of a statement or report— "(I) for credit purposes, "(II) to shareholders, or "(III) for any other substantial nontax purpose, "(iii) which is an income statement required to be provided to— "(I) the Federal Government or any agency thereof, "(II) a State government or any agency thereof, or "(III) a political subdivision of a State or any agency thereof, or "(iv) which is an income statement to be used for the purposes of a statement or report— "(I) for credit purposes, "(II) to shareholders, or "(III) for any other substantial nontax purpose.

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