Page:United States Statutes at Large Volume 100 Part 3.djvu/773

 PUBLIC LAW 99-514—OCT. 22, 1986 reference to property described in paragraph (1) or (2) shall be treated as gain described in paragraph (1) or (2)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to sales or exchanges of property received in exchanges after September 25, 1985. SEC. 1244. STUDY OF UNITED STATES REINSURANCE INDUSTRY.

The Secretary of the Treasury or his delegate shall conduct a study to determine whether United States reinsurance corporations are placed at a significant competitive disadvantage with foreign reinsurance corporations by existing treaties between the United States and foreign countries. The Secretary shall report before January 1, 1988, the results of such study to the Committee on Finance of the United States Senate and the Committee on Ways and Means of the House of Representatives. SEC. 1245. INFORMATION WITH RESPECT TO CERTAIN FOREIGN-OWNED CORPORATIONS.

(a) IN GENERAL.—Paragraph (1) of section 6038A(b) (relating to certain required information) is amended— (1) by striking out "each corporation" in the matter preceding subparagraph (A) and inserting in lieu thereof "each person", and (2) by striking out subparagraph (A) and inserting in lieu thereof the following: "(A) is a related party to the reporting corporation, and". (b) CONFORMING AMENDMENTS.—

(1) Paragraph (2) of section 6038A(b) is amended by striking out "each corporation" and inserting in lieu thereof "each person". '' (2) Paragraph (3) of section 6038A(b) is amended to read as ' "(3) transactions between the reporting corporation and each ' foreign person which is a related party to the reporting corporation." (3) Subsection (b) of section 6038A is amended by striking out "and" at the end of paragraph (2), by striking out the period at the end of paragraph (3) and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: ' "(4) such information as the Secretary may require for purposes of carrying out the provisions of section 453C." (4) Paragraph (2) of section 6038A(c) is amended to read as s follows: ? "(2) RELATED PARTY.—The term 'related party' means— "(A) any person who is related to the reporting corporation within the meaning of section 267(b) or 707(b)(1), and "(B) any other person who is related (within the meaning of section 482) to the reporting corporation." (5) Paragraph (1) of section 6038(a) is amended by striking out "and" at the end of subparagraph (D), by striking out the period at the end of subparagraph (E) and inserting in lieu thereof ", and", and by inserting after subparagraph (E) the following I new subparagraph: "(F) such information as the Secretary may require for i purposes of carrying out the provisions of section 453C." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986.
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71-19A 0 - 89 - 26: QL. 3 Part3

100 STAT. 2581

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