Page:United States Statutes at Large Volume 90 Part 2.djvu/185

 PUBLIC LAW 94-455—OCT. 4, 1976 "(2)

SPECIFICALLY ATTRIBUTABLE TAXES AND I N C O M E. — I f

9 0 STAT. 1653 the

taxpayer clearly demonstrates that the foreign taxes paid and income earned for the taxable year are attributable to specific oper' ations, then, in lieu of a p p l y i n g the international boycott factor for such taxable year, the amount of the credit disallowed under section 9 0 8 (a), the addition to subpart F income under section Ante, p. 1649. 952(a)(3), and the amount of deemed distribution under section Ante, p. 1650. 9 9 5 (b)(1)(D) (ii) for the taxable year, if any, shall be the amount specifically attributable to the operations in which there was participation in or cooperation with an international boycott under section 999(b)(1). ^ ^ ^rete, p. 1650. " (3) WORLD-WIDE OPERATIONS.—For purposes of this subsection, the term 'world-wide operations' means operations i n o r related to countries other than the United States. " (d) DETERMINATIONS W I T H RESPECT TO PARTICULAR OPERATIONS.—

Upon a request made by the taxpayer, the Secretary shall issue a determination with respect to whether a particular operation of a person, or of a member of a controlled group which includes that person, constitutes participation in o r cooperation with an international boycott. The Secretary may issue such a determination in advance of such operation in cases which are of such a nature that a n advance determination is possible and appropriate under the circumstances. I f the request is made before the operation is commenced, or before the end of a taxable year in which the operation is carried out, the Secretary may decline to issue such a determination before close of the taxable year.

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" (e) PARTICIPATION O COOPERATION BY RELATED P E R S O N S. — I f a perR

son controls (within the meaning of section 304(c)) a corporation— " (1) participation in or cooperation with an international boycott by such corporation shall be presumed to be such participation or cooperation by such person, and " (2) participation in or cooperation with such a boycott by such person shall be presumed to be such participation or cooperation by such corporation.

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" (f) W I L L F U L FAILURE TO REPORT.—Any person ( w i t h i n the mean-

ing of section 6671(b)) required to report under this section who willfully fails to make such report shall, in addition to other penalties provided by law, be fined not more than $25,000, imprisoned for not more than one year, or both.". (b) CLERICAL AMENDMENT. — The table of part s for such subchapter is amended by adding a t the end thereof the following new item: "Part V. International boycott determinations." SEC. 1065. FOREIGN BRIBES. (a)



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D E N I A L OF DEFERRAL.—

(1) CONTROLLED FOREIGN CORPORATIONS.—Section 952(a) (relat- 26 USC 952. i n g to general definition of subpart F income) is amended— (A) by striking out " and " a t the end of paragraph (2), (B) by striking out the period at the end of paragraph (3) and inserting in lieu thereof a comma and the word "and", and (C) by adding at the end thereof the following new paragraph: " (4) the sum of the amounts of any illegal bribes, kickbacks, or other payments (within the meaning of section 162(c)) paid by or on behalf of the corporation during the taxable year of

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