Page:United States Statutes at Large Volume 78.djvu/855

 78 STAT. ]

PUBLIC LAW 88.S6.^_SEPT. 2, 1964

813

shareholder of such corporation in a distribution with respect to its stock, and "(ii) such option or right is exercised within 90 days from the date of its distribution by such corporation, shall be limited to the amount of tax which would have been imposed by section 4911 if the price paid under such option or right were the actual value of the stock or debt obligation acquired. " (C) CERTAIN EMPLOYEE STOCK OFFIONS.—The tax imposed upon an acquisition of stock of a foreign issuer by a United States person pursuant to the exercise of an option or similar right described in section 4914(a)(8) shall be limited to the amount of tax which would have been imposed under section 4911 if the price paid under such option or right were the actual value of the stock acquired. "(b)

CERTAIN TRANSFERS W H I C H ARE DEEMED ACQUISITIONS.—The

tax imposed upon an acquisition which is deemed to have been made by reason of a transfer of money or other property to a foreign tmst, or a foreign corporation or partnership, as described in section 4912 (b)(1) or (2)(A), shall be limited to— "(1) the amount of tax imposed by section 4911, less "(2) the amount of tax paid by the transferor as the result of the transfer being otherwise taxable as an acquisition under this chapter. "(c)

ACQUISITIONS BY CERTAIN DOMESTICORPORATIONS AND PART-

NERSHIPS.—If stock or a debt obligation of a for e i ^ issuer or obligor is acquired by a domestic corporation or a domestic partnership with funds obtained as the result of an acquisition by a United States person of stock or a debt obligation of such corporation or partnership which under section 4912(b)(3) is deemed an acquisition by such person of stock or a debt obligation of a foreign issuer or obligor, the tax imposed upon the acquisition by the domestic corporation or the domestic partnership shall be limited to— "(1) the amount of tax imposed by section 4911, less " (2) the amount of tax paid by the United States person from whom the funds were obtained on the acquisition by such person which under section 4912(b)(3) is deemed an acquisition of stock or a debt obligation of a foreign issuer or obligor. '•SEC. 4914. EXCLUSION FOR CERTAIN ACQUISITIONS.

" (a) TRANSACTIONS NOT CONSIDERED ACQUISITIONS.—The term 'acquisition' shall not include— " (1) any transfer between a person and his nominee, custodian, or agent; "(2) any transfer described in section 4343(a) (relating to certain transfers by operation of law from decedents, minors, incompetents, financial institutions, bankrupts, successors, foreign governments and aliens, trustees, and survivors); " (3) any transfer by legacy, bequest, or inheritance to a United States person, or by gift to a United States person who is an individual; " (4) any distribution by a corporation of its stock or debt obligations to a shareholder with respect to or in exchange for its stock; "(5) any distribution to a shareholder by a corporation of stock or debt obligations owned by such corporation on July 18, 1963, in complete or partial liquidation of such corporation, to the extent such shareholder acquired his stock ownership in such corporation in a transaction other than in an acquisition excluded

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