Page:United States Statutes at Large Volume 98 Part 1.djvu/1047

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 999

interest determined by the Secretary to be equivalent to the average investment yield of United States Treasury bills with maturities of 52 weeks which were auctioned during the 1-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. "(4) SHORT YEARS.—The Secretary shall prescribe such regulations as may be necessary for the application of this subsection to short years of the DISC, the shareholder, or both.

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"(5) PAYMENT AND ASSESSMENT AND COLLECTION OF INTEREST.—

The interest accrued during any taxable year which a shareholder is required to pay under paragraph (1) shall be treated, for purposes of this title, as interest payable under section 6601 and shall be paid by the shareholder at the time the tax imposed by this chapter for such taxable year is required to be paid.". (b) TAXABLE INCOME IN EXCESS OF $10,000,000 DEEMED DISTRIBUTED.—

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(1) IN GENERAL.—Subparagraph (E) of section 995(b)(1) (relat- 26 USC 995. ing to based period export gross receipts) is amended to read as follows: "(E) the taxable income of the DISC attributable to qualifled export receipts of the DISC for the taxable year which exceed $10,000,000,".

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(2) AGGREGATION OF RECEIPTS.—Subsection (b) of section 995

(relating to deemed distributions) is amended by adding at the end thereof the following new paragraph: "(4) AGGREGATION OF QUALIFIED EXPORT RECEIPTS.—

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"(A) IN GENERAL.—For purposes of applying paragraph (1)(E), all D I S C ' S which are members of the same controlled group shall be treated as a single corporation. "(B) ALLOCATION.—The dollar amount under paragraph (I)(E) shall be allocated among the DISC's which are members of the same controlled group in a manner provided in regulations prescribed by the Secretary.".

(c) CONFORMING AMENDMENTS.—

(1) Subsection (a)(1) of section 992 (relating to definition of 26 USC 992. DISC) is amended— I (A) by striking out "and" at the end of subparagraph (C), ^'" (B) by striking out the period at the end of subparagraph (D) and inserting in lieu thereof ", and", and (C) by adding at the end thereof the following new subma tseaauos paragraph: "(E) such corporation is not a member of any controlled group of which a FSC is a member.". (2) Paragraph (3) of section 993(a) (relating to controlled 26 USC 993. groups) is amended by striking out "such term by" and inserting in lieu thereof "the term 'controlled group of corporations' by". (3) Subsection (c) of section 999 (relating to international 26 USC 999. boycott factor) is amended by striking out "995(b)(l)(F)(ii)" each place it appears and inserting in lieu thereof "995(b)(l)(F)(i)". (4) The table of subparts of part III of subchapter N of chapter 1 is amended by inserting after the item relating to subpart B the following new item: ^^,:As\i'. ^ "Subpart C. Taxation of foreign sales corporations."

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