Page:United States Statutes at Large Volume 81.djvu/190

 156

Ante, p. 148.

78 Stat. 846.

PUBLIC LAW 90-59-JULY 31, 1967

fel

STAT.

able by the person acquirinj^ the stock or debt obligation, if such firm or custodian knowingly issues a transfer of custody certificate (described in section 4918(h)(1)) which contains a misstatement of material fact or knowingly issues a transfer of custody certificate other than in accordance with the provisions of section 4918." (£) Section 6681(e) is amended to read as follows: " (e) PENALTY To B E I N L I E U OF TAX I N CERTAIN CASES.—Unless

the person acquiring the stock or debt obligation involved had reason to know that the l E T clean confirmation which he received was false in any material respect, the penalty under subsection (b)(1) shall be in lieu of any tax on the acquisition of stock or debt obligation under Ante, p. 145.

sCCtioU 4 9 1 1. "

(3) Section 6681 is amended by adding at the end thereof the following new subsection: " (f) FALSE APPLICATION FOR VALIDATION CERTIFICATE, ETC.—Any

78 Stat. 847.

79 Stat. 962.

person who knowingly supplies information in connection with an application for a validation certificate (described in section 4918 (b)(1)(A)) which contains a misstatement of a material fact, or who knowingly obtains or uses a validation certificate for the purpose of establishing an exemption for prior American ownership and compliance under section 4918(a) other than in accordance with the provisions of section 4918, shall be liable to a penalty equal to 125 percent of an amount equal to the tax which would have been imposed by section 4911 if the stock or debt obligation described in such certificate had been acquired by a person required to pay such tax on the date of application." (e) CRIMINAL PENALTY.—Section 7241 is amended by inserting " (a) " before "Any person" and by adding at the end thereof the following new subsection: "(b) Any person who, on or after the date of the enactment of the Interest Equalization Tax Extension Act of 1967, willfully executes, for purposes of section 4918(e), a statement as to his status as a United States person and ownership of stock and debt obligations which is known by him to be fraudulent or to be false in any material respect shall be guilty of a misdemeanor and, upon conviction thereof, shall for each offense be fined not more than $1,000, or imprisoned not more than 1 year, or both." (f) CONFORMING AMENDMENT.—Section 4920(a)(5) is amended by striking out "execute a certificate of American ownership (within the meaning of section 4918)" and insert in lieu thereof "be considered a United States person". (g) CLERICAL AMENDMENT.—The table of sections for subchapter A of chapter 41 is amended by striking out the item relating to section 4918 and inserting in lieu thereof the following: "Sec. 4J)18. Exemption for prior American ownership and compliance." (h) EFFECTIVE DATE.—The amendments made by this section (other

than by subsections (d) and (e)) shall apply wath respect to acquisitions of stock and debt obligations made after July 14, 1967. The amendments made by subsections (d) and (e) shall take effect on the date of the enactment of this Act. (i) INTERIM PROCEDURES.—The Secretary of the Treasury or his

delegate may establish such procedures and require the filing of such information and the maintenance of such records as may be necessary in order to permit an orderly transition in respect to market procedures for the period beginning on July 15, 1967, and ending on August 14, 1967, pursuant to which participating firms and participating custodians may issue l E T clean confirmations, written com-

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