Page:United States Statutes at Large Volume 83.djvu/295

 83 STAT. ]

PUBLIC LAW 91-128-NOV. 26, 1969

267

If an election is revoked, the Corporation shall incur liability at the time of such revocation for the tax imposed by section 4911 with g/lj^J^^/g*'^' respect to all stock or debt obligations which were acquired by it dur- 26 USC 49ii. ino- the period for which the election was in effect and which are held by it at the time of such revocation; and the amount of such tax shall be equal to the amount of tax for which the corporation would be liable under such section if it had acquired such stock or debt obligations jnnnediately after such revocation. For purposes of sections 491:2 and ^^ Stat. sio. 4915, a corporation which has made an election under paragraph (B) shall, during the period for which such election is in effect, be treated with respect to acquisitions from such corporation as a foreign corl)oration which is not formed or availed of for the principal purpose described in section 4915(c)(1)." 78 Stat. 826. (8) Section 4915(c)(3) is amended to read as follows: si Stat. i63. "(3) FOREIGN FINANCING COMPANY.—A foreign corporation^— " (A) 50 percent or more of the voting power of all classes of stock of which is owned directly or indirectly (within the meaning of subsection (a)) by a domestic corporation (or by one or more includible corporations in an affiliated group, as defined in section 48(c)(3)(C), of which such domestic cor- 76 Stat. 969. poration is a member), " (B) which, if it were a domestic corporation, would be eligible to make an election under section 4920(d), and ^"'^' P- ^^'^• " (C) gives notice to the Secretary or his delegate within the period for making an election under such section, shall, during the period after the date of such notice during which it would, if it were a domestic corporation, meet the requirements of paragraphs (1), (2), (3), (4), and (5) of section 4920(d), be treated as not formed or availed of for the princi))al purpose described in paragraph (1) of this subsection. IJF such coriwration ceases to meet such requirements, such corporation shall be treated as having been availed of for the principal purpose described in paragraph (1) of this subsection at the time of such cessation."' (4) The amendments made by this subsection shall take effect Effective date. on the date of the enactment of this Act. (f) TRANSACTION TAX RETURNS.—Section 6011(d)(1) (I^) is si Stat. iss. amended by inserting after "subparagraph (A)*' the folk)wing: "(unless such disposition is made under circumstances which entitle such person to a credit under the provisions of section 4919)*'. 78 Stat. 833. (g) REPORTING REQUIREMENTS OF XONPARTICIPATING FIRMS.—Sec-

tion 6011(d)(3) is amended to read as follows:

78 Stat. 844.

"(3) REPORTING REQUIREMENTS FOR CERTAIN MEMBERS OF EXCHANGES AND ASSOCIATIONS.—Every meml)er or member orga-

nization of a national.securities exchange or of a national securities association registered with the Securities and Exchange (\)mmission, which is not subject to the provisions of secti(m 4918(c), sihall keep such records and file such information as the Secretary or his delegate may by forms or regulations prescribe in connection with acquisitions and sales effected by such member or member organization, as a broker or for his own account, of stock of a foreign issuer or debt obligations of a foreign obligor— " (A) with respect to which a validation certificate described in section 4918(b)(1)(A) has lpeen received by such member or member organization; or " (B) with respect to which an acquiring United States l)erson is subject to the tax imposed by section 4911."'

si Stat. 149.

si Stat. 149.

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