Page:United States Statutes at Large Volume 98 Part 1.djvu/1099

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1051

"(A) IN GENERAL.—If paragraph (1) applies to any nonRIC year of an investment company, such investment company shall pay interest at the annual rate established under section 6621— "(i) on an amount equal to 50 percent of the amount referred to in paragraph (2)(A)(i), "(ii) for the period— "(I) which begins on the last day prescribed for payment of the tax imposed for the non-RIC year (determined without regard to extensions), and "(II) which ends on the date the determination is made. "(B) COORDINATION WITH SUBTITLE F.—Any interest payable under subparagraph (A) may be assessed and collected at any time during the period during which any tax imposed for the taxable year in which the determination is made may be assessed and collected.

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"(4) PROVISION NOT TO APPLY IN THE CASE OF FRAUD.—The

provisions of this subsection shall not apply if the determination contains a finding that the failure to meet any requirement of this part was due to fraud with intent to evade tax. "(5) DETERMINATION.—For purposes of this subsection, the term 'determination' has the meaning given to such term by section 860(e). Such term also includes a determination by the investment company filed with the Secretary that the provisions of this part do not apply to the investment company for a taxable year." (5) EFFECTIVE DATES.— 26 USC 852 note. (A) IN GENERAL.—Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to taxable years beginning after December 31, 1982. (B) INVESTMENT COMPANIES WHICH WERE REGULATED INVESTMENT COMPANIES FOR YEARS ENDING BEFORE NOVEM-

BER 8, 1983.—In the case of any investment company to which the provisions of part I of subchapter M of chapter 1 of the Internal Revenue Code of 1954 applied for any tax- 26 USC 851. able year ending before November 8, 1983, for purposes of section 852(a)(3)(B) of the Internal Revenue Code of 1954 (as Ante, p. 1050. amended by this subsection), no earnings and profits accumulated in any taxable year ending before January 1, 1984, shall be taken into account. i (C)

INVESTMENT

COMPANIES

BEGINNING

BUSINESS

IN

1983.—In the case of an investment company which began business in 1983 (and was not a successor corporation), earnings and profits accumulated during its first taxable year shall not be taken into account for purposes of section 852(a)(3)(B) of such Code (as so amended). (D) INVESTMENT COMPANIES REGISTERING BEFORE NOVEM-

BER 8, 1983.—In the case of any investment company— (i) which, during the period after December 31, 1981, and before November 8, 1983— (I) was engaged in the active conduct of a trade or business, (II) sold substantially all of its operating assets, and

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