Page:United States Statutes at Large Volume 90 Part 2.djvu/160

 90 STAT. 1628

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PUBLIC LAW 94-455—OCT. 4, 1976 been paid from the most recently accumulated gains, profits, or earnings. " (2) ACCOUNTING PERIODS.—In the case of a foreign corporation the income, war profits, and excess profits taxes of which are determined on the basis of an accounting period of less than 1 year, the word 'year' as used in this subsection, shall be construed to mean such accounting period. "(d)

CROSS R E F E R E N C E S. —

"(1) For inclusion in gross income of an amount equal to taxes deemed paid under subsection (a), see section 78. "(2) For application of subsections (a) and (b) with respect to taxes deemed paid in a prior taxable year by a United States shareholder with respect to a controlled foreign corporation, see section 960. "(3) For reduction of credit with respect to dividends paid out of accumulated profits for years for which certain information is not furnished, see section 6038." (b)

26 USC 78.

26 USC 960.

26 USC 535.

26 USC 545.

26 USC 902 note.

Post, p. 1626.

CONFORMING AMENDMENTS. —

(1) Section 78 (relating to dividends received from certain foreign corporations) is amended— (A) by striking out "section 902(a)(1) " and inserting in lieu thereof "section 902(a) ", and (B) by striking out "section 960(a)(1)(C) " and inserting in lieu thereof "section 960(a)(1) ". (2) Paragraph (1) of section 960(a) (relating to special rules for foreign tax credit) is amended by striking out "bears to — " and all that follows down through the period at the end of such paragraph and inserting in lieu thereof "bears to the entire amount of the earnings and profits of such foreign corporation for such taxable year.". (3) Section 5 3 5 (b)(1) (relating to accumulated taxable income) is amended by striking out "section 902(a)(1) or 960(a) (1)(C) " and inserting in lieu thereof "section 902(a) or 960(a) (4) Section 5 4 5 (b)(1) (relating to undistributed personal holding company income) is amended by striking out "section 902(a)(1) or 960(a)(1)(C) " and inserting in lieu thereof "section 902(a) or 960(a)(1) ". (c) EFFECTIVE DATES.—The amendments made by this section shall apply— (1) in respect of any distribution received by a domestic corporation after December 31, 1977, and (2) in respect of any distribution received by a domestic corporation before January 1, 1978, in a taxable year of such corporation beginning after December 31, 1975, but only to the extent that such distribution is made out of the accumulated profits of a foreign corporation for a taxable year (of such foreign corporation) beginning after December 31, 1975. For purposes of paragraph (2), a distribution made by a foreign corporation out of its profits which are attributable to a distribution received from a foreign corporation to which section 902(b) of the I n t e r n a l Revenue Code of 1954 applies shall be treated as made out of the accumulated profits of a foreign corporation for a taxable year beginning before January 1, 1976, to the extent that such distribution was paid out of the accumulated profits of such foreign corporation for a taxable year beginning before January 1, 1976.

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