Page:United States Statutes at Large Volume 70.djvu/200

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68A Stat. 803. 26 USC 6501.

Ante, p. 135. Ante, p. 143.

PUBLIC LAW 511-MAY 9, 1956

[70 S T A T.

"(1) if the property is received by a shareholder with respect to stock, without the surrender by such shareholder of stock, the basis of the property received and of the stock with respept to which it is distributed shall, in the distributee's hands, be determined by allocating between such property and such stock the adjusted basis of such stock; or "(2) if the property is received by a shareholder in exchange for stock or by a security holder in exchange for securities, the basis of the property received shall, in the distributee's hands, be the same as the adjusted basis of the stock or securities exchanged, increased by— " (A) the amount of the property received which was treated as a dividend, and " (B) the amount of gain to the taxpayer recognized on the property received (not including any portion of such gain which was treated as a dividend). " (b) PERIODS OF LIMITATION.—The periods of limitation provided in section 6501 (relating to limitations on assessment and collection) shall not expire, with respect to any deficiency (including interest and additions to the tax) resulting solely from the receipt of property by shareholders in a distribution which is certified by the Board under subsection (a), (b), or (c) of section 1101, until five years after the distributing corporation notifies the Secretary or his delegate (in such manner and with such accompanying information as the Secretary or his delegate may by regulations prescribe) that the period (including extensions thereof) prescribed in section 4(a) of the Bank Holding Company Act of 1956, or section 1101(e)(2)(B), whichever is applicable, has expired; and such assessment may be made notwithstanding any provision of law or rule of law which would otherwise prevent such assessment. " (c) AlXOCATION OF EARNINGS AND P R OF I T S. "(1) DISTRIBUTION OF STOCK I N A CONTROLLED CORPORATION.—

Ante, p. 139.

I n the case of a distribution by a qualified bank holding corporation under section 1101(a)(1) or (b)(1) of stock in a controlled corporation, proper allocation with respect to the earnings and profits of the distributing corporation and the controlled corporation shall be made under regulations prescribed by the Secretary or his delegate. "(2)

Ante, p. 142.

E X C H A N G E S D E S C R I B E D I N SECTION 1 1 0 1 ( o

(2) OR (s). — I n

the case of any exchange described in section 1101(c)(2) or (3), proper allocation with respect to the earnings and profits of the corporation transferring the property and the corporation receiving such property shall be made under regulations prescribed by the Secretary or his delegate. "(3)

DEFINITION OF CONTROLLED CORPORATION.—For purposes

of paragraph (1), the term 'controlled corporation- means a corporation with respect to which at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock is owned by the distributing qualified bank holding corporation. " (d) ITEMIZATION OF PROPERTY.—In any certification under this part, the Board shall make such specification and itemization of property as may be necessary to carry out the provisions of this part. "SEC. 1103. DEFINITIONS.

Ante, p. 133.

" (a) B A N K HOLDING COMPANY.—For purposes of this part, the term 'bank holding company' has the meaning assigned to such term by section 2 of the Bank Holding Company Act of 1956.

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