Page:United States Statutes at Large Volume 102 Part 4.djvu/563

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3533

"(c) PENALTY IN ADDITION TO OTHER PENALTIES.—The penalty imposed by this section shall be in addition to any other penalty imposed by law." (C)(i) The table of sections for subchapter B of chapter 61 of the 1986 Code is amended by striking out the item relating to section 6114 and inserting in lieu thereof the following: "Sec. 6114. Treaty-based return positions. "Sec. 6115. Cross reference."

(ii) The table of sections for part I of subchapter B of chapter 68 of the 1986 Code is amended by adding at the end thereof the following new item: "Sec. 6712. Failure to disclose treaty-based return positions."

(D) The amendments made by this paragraph shall apply to 26 USC 6114 taxable periods the due date for filing returns for which (with- note, out extension) occurs after December 31, 1988. (6) Subsection (a) of section 894 of the 1986 Code is amended to read as follows: "(a) TREATY PROVISIONS.—

"(1) IN GENERAL.—The provisions of this title shall be applied to any taxpayer with due regard to any treaty obligation of the United States which applies to such taxpayer. "(2) CROSS REFERENCE.— "For relationship between treaties and this title, see section 7852(d)." (bb) MISCELLANEOUS FOREIGN TECHNICAL CORRECTIONS.— (1) PROVISIONS RELATING TO FOREIGN PERSONAL HOLDING COMPANIES.—

(A) Subsection (f) of section 551 of the 1986 Code is amended— (i) by amending paragraph (1) to read as follows: "(1) a foreign partnership or an estate or trust which is a foreign estate or trust, or", and (ii) by striking out the last sentence and inserting in lieu thereof the following: "In any case to which the preceding sentence applies, the Secretary may by regulations provide that rules similar to the rules of section 1297(b)(5) shall apply, and provide for such other adjustments in the application of this subchapter as may be necessary to carry out the purposes of this subsection." (B) Subsection (a) of section 551 of the 1986 Code is amended by striking out "(other than estates or trusts the gross income of which under this subtitle includes only income from sources within the United States)" and inserting in lieu thereof "(other than foreign estates or trusts)". (C) Subsection (c) of section 552 of the 1986 Code is amended to read as follows: "(c) LOOK-THRU FOR CERTAIN DIVIDENDS AND INTEREST.—

"(1) IN GENERAL.—For purposes of this part, any related person dividend or interest shall be treated as foreign personal holding company income only to the extent such dividend or interest is attributable (determined under rules similar to the rules of subparagraphs (C) and (D) of section 904(d)(3)) to income of the related person which would be foreign personal holding company income.

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