Page:United States Statutes at Large Volume 102 Part 4.djvu/670

 102 STAT. 3640

PUBLIC LAW 100-647—NOV. 10, 1988 (5) CLARIFICATION OF EFFECTIVE DATE.—For purposes of section 10402(b) of the Revenue Act of 1987, with respect to property transferred on or before December 17, 1987— (A) any failure to exercise a right of conversion, (B) any failure to pay dividends, and (c) failures to exercise other rights specified in regulations, shall not be treated as a subsequent transfer.

Subtitle E—Indian Fishing Rights SEC. 3041. FEDERAL TAX TREATMENT OF INCOME DERIVED BY INDIANS FROM EXERCISE OF FISHING RIGHTS SECURED BY TREATY, ETC.

(a) GENERAL RULES.—Subchapter C of chapter 80 of the 1986 Code (relating to provisions affecting more than one subtitle) is amended by adding at the end thereof the following new section: "SEC. 7873. INCOME DERIVED BY INDIANS FROM EXERCISE OF FISHING RIGHTS. "(a) IN GENERAL.— "(1) iNCOBflE AND SELF-EMPLOYMENT TAXES.—No tax shall be

imposed by subtitle A on income derived— "(A) by a member of an Indian tribe directly or through a qualified Indian entity, or "(B) by a qualified Indian entity, from a fishing rights-related activity of such tribe. "(2) EMPLOYMENT TAXES.—No tax shall be imposed by subtitle C on remuneration paid for services performed in a fishing rights-related activity of an Indian tribe by a member of such tribe for another member of such tribe or for a qualified Indian entity. "(b) DEFINITIONS.—For purposes of this section— "(1) FISHING RIGHTS-RELATED ACTIVITY.—The term 'fishing rights-related activity' means, with respect to an Indian tribe, any activity directly related to harvesting, processing, or transporting fish harvested in the exercise of a rea^pcdzed fishing right of such tribe or to selling such fish but only if substantially all of such harvesting was performed by members of such tribe. "(2) RECOGNIZED FISHING RIGHTS.—The term 'recc^nized fishing rights' means, with respect to an Indian tribe, fishing rights secured as of March 17, 1988, by a treaty between such tribe and the United States or by an Executive order or an Act of Congress. "(3) QUALIFIED INDIAN ENTITY.—

"(A) IN GENERAL.—The term 'qualified Indian entity* means, with respect to an Indian tribe, any entity if— "(i) such entity is engaged in a fishing rights-related activity of such tribe, "(ii) all of the equity interests in the entity are owned by qualified Indian tribes, members of such tribes, or their spouses, "(iii) except as provided in r^ulations, in the case of an entity which engages to any extent in any substantial processing or transporting of fish, 90 percent or

�