CH. 5—TAX ON TRANSFERS TO AVOID INCOME TAX
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CHAPTER 5—TAX ON TRANSFERS TO AVOID INCOME TAX Sec. Sec. Sec. Sec.
1491. 1492. 1493. 1494.
Imposition of tax. Nontaxable transfers. Definition of foreign trust. Payment and collection.
SEC. 1491. IMPOSITION OP TAX.
There is hereby imposed on the transfer of stock or securities by a citizen or resident of the United States, or by a domestic corporation or partnership, or by a trust which is not a foreign trust, to a foreign corporation as paid-in surplus or as a contribution to capital, or to a foreign trust, or to a foreign partnership, an excise tax equal to 27K percent of the excess of— (1) the value of the stock or securities so transferred, over (2) its adjusted basis (for determining gain) in the hands of the transferor. SEC. 1492. NONTAXABLE TRANSFERS.
The tax imposed by section 1491 shall not apply— (1) If the transferee is an organization exempt from income tax under part I of subchapter F of chapter 1 (other than an organization described in section 401(a)); or (2) If before the transfer it has been established to the satisfaction of the Secretary or his delegate that such transfer is not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes. SEC. 1493. DEFINITION OF FOREIGN TRUST.
A trust shall be considered a foreign trust within the meaning of this chapter if, assuming a subsequent sale by the trustee, outside the United States and for cash, of the property so transferred, the profit, if any, from such sale would not be included in the gross income of the trust under this subtitle. SEC. 1494. PAYMENT AND COLLECTION. (a) T I M E FOR PAYMENT.—The tax imposed by section 1491 shall,
without assessment or notice and demand, be due and payable by the transferor a t the time of the transfer, and shall be assessed, collected, and paid under regulations prescribed by the Secretary or his delegate. (b) ABATEMENT OR R E F U N D. — Under regulations prescribed by the Secretary or his delegate, the tax may be abated, remitted, or refunded if after the transfer it has been established to the satisfaction of the Secretary or his delegate that such transfer was not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes.
§ 1494(b)
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