Page:United States Statutes at Large Volume 98 Part 1.djvu/697

 PUBLIC LAW 98-369—JULY 18, 1984 i^v

98 STAT. 649

issue discount) which is described in any of the following subparagraphs: "(A) CERTAIN OBLIGATIONS WHICH ARE NOT REGISTERED.—

Interest which is paid on any obligation which— "(i) is not in registered form, and "(ii) is described in section 163(f)(2)(B). "(B) CERTAIN REGISTERED OBLIGATIONS.—Interest which is paid on an obligation— "(i) which is in registered form, and "(ii) with respect to which the United States person who would otherwise be required to deduct and withhold tax from such interest under section 1441(a) has received a statement (which meets the requirements of paragraph (4)) that the beneficial owner of the obligation is not a United States person. "(3) PORTFOUO INTEREST NOT TO INCLUDE INTEREST RECEIVED BY 10-PERCENT SHAREHOLDERS.— For purposes of this subsection— "(A) IN GENERAL.—The term 'portfolio interest' shall not „,.,i,, include any interest described in subparagraph (A) or (B) of paragraph (2) which is received by a 10-percent shareholder. . i,. "(B) 10-PERCENT SHAREHOLDER.—The term '10-percent shareholder'means— "(i) in the case of an obligation issued by a corporation, any person who owns 10 percent or more of the total combined voting power of all classes of stock of such corporation entitled to vote, or "(ii) in the case of an obligation issued by a partner, ship, any person who owns 10 percent or more of the capital or profits interest in such partnership.

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"(C) ATTRIBUTION RULES.—For puiT)oses of determining

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ownership of stock under subparagraph (B)(i) the rules of section 318(a) shall apply, except that— "(i) section 318(a)(2)(C) shall be applied without 'c.^y, j,. regard to the 50-percent limitation therein, and "(ii) any stock which a person is treated as owning gwft rAgr after application of section 318(a)(4) shall not, for purposes of applying paragraphs (2) and (3) of section 318(a), be treated as actually owned by such person. Under regulations prescribed by the Secretary, rules similar to the rules of the preceding sentence shall be applied in determining the ownership of the capital or profits interest in a partnership for purposes of subparagraph (B)(ii). "(4) CERTAIN STATEMENTS.—A statement with respect to any obligation meets the requirements of this paragraph if such statement is made by— "(A) the beneficial owner of such obligation, or "(B) a securities clearing organization, a bank, or other financial institution that holds customers' securities in the ordinary course of its trade or business. The preceding sentence shall not apply to any statement with respect to payment of interest on any obligation by any person if, at least one month before such payment, the Secretary has published a determination that any statement from such person (or any class including such person) does not meet the requirements of this paragraph.

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