Page:United States Statutes at Large Volume 98 Part 1.djvu/1041

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 993

"(B) under regulations prescribed by the Secretary, any amount in excess of the price for an immediate cash sale and any other unstated interest. "(2) TRANSACTION.—

"(A) IN GENERAL.—The term 'transaction' means— "(i) any sale, exchange, or other disposition, "(ii) any lease or rental, and "(iii) any furnishing of services. "(B) GROUPING OF TRANSACTIONS.—To the extent provided in regulations, any provision of this subpart which, but for this subparagraph, would be applied on a transaction-bytransaction basis may be applied by the taxpayer on the ,;_, basis of groups of transactions based on product lines or " recognized industry or trade usage. Such regulations may permit different groupings for different purposes. "(3) UNITED STATES DEFINED.—The term 'United States' includes the Commonwealth of Puerto Rico. "(4) CONTROLLED GROUP OF CORPORATIONS.—The term 'controlled group of corporations' has the meaning given to such term by section 1563(a), except that— "(A) 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears therein, and "(B) section 1563(b) shall not apply. "(5) POSSESSIONS.—The term 'possession of the United States' means Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands of the United States. "(6) SECTION 923(A)(2) NON-EXEMPT INCOME.—The term 'section 923(a)(2) non-exempt income' means any foreign trade Ante, p. income from a transaction with respect to which paragraph (1) or (2) of section 925(a) does not apply and which is not exempt Ante, p. foreign trade income.

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986. 990.

"(e) SPECIAL RULES,— "(1) SOURCE RULES FOR RELATED PERSONS.—Under regulations,

the income of a person described in section 482 from a transaction giving rise to foreign trading gross receipts of a FSC which is treated as from sources outside the United States shall not exceed the amount which would be treated as foreign source income earned by such person if the pricing rule under section 994 which corresponds to the rule used under section 925 with respect to such transaction applied to such transaction. "(2) PARTICIPATION IN INTERNATIONAL BOYCOTTS, ETC.—Under

regulations prescribed by the Secretary, the exempt foreign trade income of a FSC for any taxable year shall be limited under rules similar to the rules of clauses (i) and (ii) of section 995(b)(1)(F). "(3) EXCHANGE OF INFORMATION REQUIREMENTS.—For purposes of this title, the term 'FSC shall not include any corporation which was created or organized under the laws of any foreign country unless, at the time such corporation was created or organized, there was in effect between such country and the United States— "(A) a bilateral or multilateral agreement described in section 274(h)(6)(C), or 97 Stat. 395. "(B) an income tax treaty with respect to which the 26 USC 274. Secretary certifies that the exchange of information pro«

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