Page:United States Statutes at Large Volume 80 Part 1.djvu/1598

 1562

PUBLIC LAW 89-809-NOV. 13, 1966

[80 STAT.

(H) by striking out "subsection (b)(2)(B) " in paragraph (2)(B) ( i i) of such subsection (b) and inserting in lieu thereof "subsection (a)(2)(B) ", and (I) by adding at the end thereof the following new subsection: " (c) CROSS REFERENCE.— "For taxation of foreign corporations carrying on life insurance business within the United States, see section 842."

76 Stat. 989.

^^^ Section 821 (relating to tax on mutual insurance companies to which part II applies) is amended— (A) by striking,out subsection (e) and by redesignating subsections (f) and (g) as subsections (e) and (f), and (B) by adding at the end of subsection (f) (as redesignated by subparagraph (A)) the fallowing: "(3) For taxation of foreign corporations carrying on an insurance business within the United States, see section 842."

76^sfat^*992^^^'

(^) Section 822 (relating to determination of taxable investment income) is amended by striking out subsection (e) and by redesignating subsection (f) as subsection (e). (6) Section 831 (relating to tax on certain other insurance companies) is amended— (A) by striking out subsection (b) and by redesignating subsection (c) as subsection (b), and (B) by amending subsection (d) to read as follows: " (c) CROSS REFERENCES.— "(1) For alternative tax in case of capital gains, see section 1201(a). "(2) For taxation of foreign corporations carrying on an insurance business within the United States, see section 842."

76 Stat. 1008.

(7) Section 832 (relating to insurance company taxable income) is amended by striking out subsection (d) and by redesignating subsection (e) as subsection (d). (8) The second sentence of section 841 (relating to credit for foreign taxes) is amended by striking out "sentence," and inserting in lieu thereof "sentence (and for purposes of applying sec^JQJ^ QQQ yfYiY^ respect to a foreign corporation subject to tax under this subchapter),". ^j^ SiTBPART F INCOME.—Section 952(b) (relating to exclusion of United States income) is amended to read as follows: "(b) EXCLUSION OF UNITED STATES INCOME.—In the case of a controlled foreign corporation, subpart F income does not include any item of income from sources within the United States which is effectively connected with the conduct by such corporation of a trade or pusiness within the United States unless such item is exempt from taxation (or is subject to a reduced rate of tax) pursuant to a treaty obligation of the United States."

76 Stat. 1041.

(k) G A I N FROM CERTAIN SALES OR EXCHANGES OF STOCK IN CERTAIN FOREIGN CORPORATIONS.—Paragraph (4) of section 1248(d) (relating

Post, p. 1568.

to exclusions from earnings and profits) is amended to read as follows: "(4) UNITED STATES INCOME.—Any item includible in gross income of the foreign corporation under this chapter— " (A) for any taxable year beginning before January 1, 1967, as income derived from sources within the United States of a foreign corporation engaged in trade or business within the United States, or " (B) for any taxable year beginning after December 31, 1966, as income effectively connected with the conduct by such corporation of a trade or business within the United States.

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