Page:United States Statutes at Large Volume 90 Part 2.djvu/186

 90 STAT. 1654

26 USC 995.

PUBLIC LAW 94^455—OCT. 4, 1976 the corporation directly or indirectly to an official, employee, or agent in fact of a government." (2) DISC'S.—Subparagraph (D) of section 995(b)(1) (relating to distributions in qualified years) is amended— (A) by striking out "and" at the end of clause (i), (B) by adding at the end thereof the following new clause: "(iii) any illegal bribe, kickback, or other payment (within the meaning of section 162(c)) paid by or on behalf of the DISC directly or indirectly to an official, employee, or agent in fact of a government, and", (b) BRIBES NOT To REDUCE FOREIGN EARNINGS AND PROFITS.—Sec-

26 USC 964.

26 USC 908

note.

26 USC 952 "ot«26 USC 999 note.

Ante, p. 1650.

tion 964(a) (relating to earnings and profits of foreign corporations) is amended by adding at the end thereof the following sentence,: "In determining such earnings and profits, or the deficit in such earnings and profits, the amount of any illegal bribe, kickback, or other payment (within the meaning of section 162(c)) shall not be taken into account to decrease such earnings and profits or to increase such deficit.". SEC. 1066. EFFECTIVE DATES. (a)

INTERNATIONAL BOYCOTTS.—

(1) GENERAL RULE.—The amendments made by this part (other than by section 1065) apply to participation in or cooperation with an international boycott more than 30 days after the date of enactment of this Act. (2) EXISTING CONTRACTS.—In the case of operations which constitute participation in or cooperation with an international boycott and which are carried out in accordance with the terms of a binding contract entered into before September 2, 1976, the amendments made by this part (other than by section 1065) apply to such participation or cooperation after December 31, 1977. (b) FOREIGN BRIBES..—The amendments made by section 1065 apply to payments described in section 162(c) of the Internal Revenue Code of 1954 made more than 30 days after the date of enactment of this Act. SEC. 1067. REPORTS BY SECRETARY. (a) REPORTS TO THE CONGRESS.—As

soon after the close of each calendar year as the data become available, the Secretary shall transmit a report to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate setting forth, for that calendar year— (1) the number of reports filed under section 999(a) of the Internal Revenue Code of 1954 for taxable years ending with or within such taxable year, (2) the number of such rep>orts on which the taxpayer indicated international boycott participation or cooperation (within the meaning of section 999(b)(3) of such Code), and (3) a detailed description of the manner in which the provisions of such Code relating to international boycott activity have been administered during such calendar year. (b) INITIAL LIST.—The Secretary of the Treasury shall publish an initial list of those countries which may require participation in or cooperation with an international boycott as a condition of doing business within such country, or with the go^'^ernment, a company, or a national of such country (within the meaning of section 999(b) of the Internal Revenue Code of 1954) within 30 days after the enactment of this Act.

�