Page:United States Statutes at Large Volume 83.djvu/291

 83 STAT. ]

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PUBLIC LAW 91-128-NOV. 26, 1969

263

money or other property to a foreign trust slnill, if such trust acquires stock or debt obligations (of one or more foreign issuers or obligors) the direct acquisition of which by the transferor would be subject to the tax imposed by section 4911, be deemed an acquisition by the transferor (as of the g/lj^^'^'i'/s"''* time of such transfer) of stock of a foreign issuer in an 26 USC 4911. amount equal to the actual value of the money or property transferred or, if less, the actual value of the stock or debt obligations so acquired by such trust. Contributions made by an employer to a foreign pension or profit-sharing trust established by such employer for the exclusive benefit of employees (who are not owner-employees as defined in section 401(c)(3)) who i:>erform perscmal services for such 76 Stat. 812. employer on a full-time basis in a foreign country, and con^ ^^^ tributions to a foreign pension or profit-sharing trust established by an employer, made by an employee who performs personal services for suc'h employer on a full-time basis in a foreign country (and is not an owner-employee as defined in section 4 0 1 (c)(3)), shall not he considered under the preceding sentence as transfers which may be deemed acquisitions of stock of a foreign issuer. " (B) PRESUMPTION OF AcQUisrnoN or FOREIGN SECURITIES.—Whenever money or other property is transferred to a foreign trust in the manner described in the first sentence of subparagraph (A), it shall be presumed, with respect to the calendar quarter in which the transfer took place and each succeeding calendar quarter beginning prior to the termination date specified in section 4911(d), that such trust ^"t^' P- 261. subsequently acquired stock or debt obligations the direct acquisition of which by the transferor would be subject to the tax imposed by section 4911, in an amount equal to the actual value of the money or other property transferred. The transferor may rebut this presumption with respect to each such calendar quarter by submitting, on or before the 30th day following the close of such quarter, documents or other proof which will establish to the satisfaction of the Secretary or his delegate that, during such quarter, liability for such tax has not been incurred or any liability which has been incurred has been paid." (2) The amendment made by paragraph (1) of this subsection Effective date. shall apply with respect to transfers made after June 9, 1969. (b)

FOREIGN MINERAL FACILITIES.—

(1) Section 4914(c)(5)(B) is amended by adding at the end g/stJt^'i'sV^' thereof the following new sentence: 'Tf the proceeds of the loan by such United States person constitute only a part of the cost of the installation, maintenance, or improvement of such facilities, the substantial portion requirement in the preceding sentence shall be satisfied if the percentage of the total capacity of such facilities which will be used in connection with ores or minerals (or derivatives thereof) extracted or obtained in the specified manner is more than one-half of the percentage of the cost of such facilities represented by the amount of such loan and in no event is less than 10 percent of such total capacity." (2) The amendment made by paragraph (1) of this subsection Effective date. shall apply with respect to acquisitions made after the date of the enactment of this Act.

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