118 STAT. 1565 PUBLIC LAW 108–357—OCT. 22, 2004 an expatriated entity for any taxable year described in sub section (a) only to the extent such tax exceeds the product of— ‘‘(A) the amount of the inversion gain for the taxable year, and ‘‘(B) the highest rate of tax specified in section 11(b)(1). For purposes of determining the credit allowed by section 901, inversion gain shall be treated as from sources within the United States. ‘‘(2) SPECIAL RULES FOR PARTNERSHIPS.—In the case of an expatriated entity which is a partnership— ‘‘(A) subsection (a)(1) shall apply at the partner rather than the partnership level, ‘‘(B) the inversion gain of any partner for any taxable year shall be equal to the sum of— ‘‘(i) the partner’s distributive share of inversion gain of the partnership for such taxable year, plus ‘‘(ii) gain recognized for the taxable year by the partner by reason of the transfer during the applicable period of any partnership interest of the partner in such partnership to the surrogate foreign corporation, and ‘‘(C) the highest rate of tax specified in the rate schedule applicable to the partner under this chapter shall be substituted for the rate of tax referred to in paragraph (1). ‘‘(3) COORDINATION WITH SECTION 172 AND MINIMUM TAX.— Rules similar to the rules of paragraphs (3) and (4) of section 860E(a) shall apply for purposes of subsection (a). ‘‘(4) STATUTE OF LIMITATIONS.— ‘‘(A) IN GENERAL.—The statutory period for the assess ment of any deficiency attributable to the inversion gain of any taxpayer for any pre inversion year shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may prescribe) of the acquisition described in subsection (a)(2)(B)(i) to which such gain relates and such deficiency may be assessed before the expiration of such 3 year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment. ‘‘(B) PRE INVERSION YEAR.—For purposes of subpara graph (A), the term ‘pre inversion year’ means any taxable year if— ‘‘(i) any portion of the applicable period is included in such taxable year, and ‘‘(ii) such year ends before the taxable year in which the acquisition described in subsection (a)(2)(B)(i) is completed. ‘‘(f) SPECIAL RULE FOR TREATIES.—Nothing in section 894 or 7852(d) or in any other provision of law shall be construed as permitting an exemption, by reason of any treaty obligation of the United States heretofore or hereafter entered into, from the provisions of this section. ‘‘(g) REGULATIONS.—The Secretary shall provide such regula tions as are necessary to carry out this section, including regulations providing for such adjustments to the application of this section Applicability. Applicability.
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