Page:United States Statutes at Large Volume 114 Part 4.djvu/372

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114 STAT. 2434 PUBLIC LAW 106-519—NOV. 15, 2000 Applicability. Applicability. to which such amendments would apply but for the application of paragraph (1). Such election shall be effective for the taxable year for which made and all subsequent taxable years, and, once made, may be revoked only with the consent of the Secretary of the Treasury. (3) EXCEPTION FOR OLD EARNINGS AND PROFITS OF CERTAIN CORPORATIONS. — (A) IN GENERAL. —In the case of a foreign corporation to which this paragraph applies— (i) earnings and profits of such corporation accumulated in taxable years ending before October 1, 2000, shall not be included in the gross income of the persons holding stock in such corporation by reason of section 943(e)(4)(B)(i); and (ii) rules similar to the rules of clauses (ii), (iii), and (iv) of section 953(d)(4)(B) shall apply with respect to such earnings and profits. The preceding sentence shall not apply to earnings and profits acquired in a transaction after September 30, 2000, to which section 381 applies unless the distributor or transferor corporation was immediately before the transaction a foreign corporation to which this paragraph applies. (B) EXISTING FSCS.— This paragraph shall apply to any controlled foreign corporation (as defined in section 957) if— (i) such corporation is a FSC (as so defined) in existence on September 30, 2000; (ii) such corporation is eligible to make the election under section 943(e) by reason of being described in paragraph (2)(B) of such section; and (iii) such corporation makes such election not later than for its first taxable year beginning after December 31, 2001. (C) OTHER CORPORATIONS. —Th is paragraph shall apply to any controlled foreign corporation (as defined in section 957), and such corporation shall (notwithstanding any provision of section 943(e)) be treated as an applicable foreign corporation for purposes of section 943(e), if— (i) such corporation is in existence on September 30, 2000; (ii) as of such date, such corporation is wholly owned (directly or indirectly) by a domestic corporation (determined without regard to any election under section 943(e)); (iii) for each of the 3 taxable years preceding the first taxable year to which the election under section 943(e) by such controlled foreign corporation applies— (I) all of the gross income of such corporation is subpart F income (as defined in section 952), including by reason of section 954(b)(3)(B); and (II) in the ordinary course of such corporation's trade or business, such corporation regularly sold (or paid commissions) to a FSC which on September 30, 2000, was a related person to such corporation; (iv) such corporation has never made an election under section 922(a)(2) (as in effect before the date