78 STAT. ]
PUBLIC LAW 88-563-SEPT. 2, 1964
trust established by an employer, made by an employee who performs personal services for such employer on a full-time basis m a foreign country (and is not an owner-employee as defined in section 401(c)(3)), shall not be considered under the preceding sentence as transfers which may be deemed acquisitions of stock of a foreign issuer. "(2)
811
76 Stat. 812. ^^ ^^^ ^°^'
CERTAIN TRANSFERS.—
"(A)
TRANSFERS TO FOREIGN CORPORATIONS AND PARTNER-
SHIPS.—Any transfer of money or other property to a foreign corporation or a foreign partnership— " (i) as a contribution to the capital of such corporation or partnership, or "(ii) in exchange for one or more debt obligations of such corporation or partnership, if it is a foreign corporation or partnership which is formed or availed of by the transferor for the principal purpose of acquiring (in the manner described in section 4915(c) (1^) an ^ost, p. 826. interest in stock or debt obligations the direct acquisition of which by the transferor would be subject to the tax imposed by section 4911, shall be deemed an acquisition by the transferor of stock of a foreign corporation or partnership in an amount equal to the actual value of the money or property transferred. " (B) TRANSFERS TO FOREIGN BRANCHES.—If a domestic corporation or partnership transfers money or other property to, or applies money or other property for the benefit of, a branch office of such corporation or partnership with respect to which there is in effect an election under section 4920(a) (5)(E), or if funds are borrowed by such branch office from a bank (as defined in section 581), other than from a branch 26 USC ssi. of such a bank located outside the United States lending such funds in the ordinary course of its business, such domestic corporation or partnership shall be deemed to have acquired stock of a foreign corporation or partnership in an amount equal to the actual value of the money or property transferred or applied, or the funds borrowed. " (3) ACQUISITIONS FROM DOMESTICORPORATION OR PARTNERSHIP FORMED OR AVAILED OF TO OBTAIN FUNDS FOR FOREIGN ISSUER OR
OBLIGOR.—The acquisition of stock or a debt obligation of a domestic corporation (other than a domestic corporation described in section 4 9 2 0 (a)(3)(B)), or a domestic partnership, formed or availed of for the principal purpose of obtaining funds (directly or indirectly) for a foreign issuer or obligor, shall be deemed an acquisition (from such foreign issuer or obligor) of stock or a debt obligation of such foreign issuer or obligor. "(4) REORGANIZATION EXCHANGES.—Any acquisition of stock or debt obligations of a foreign issuer or obligor in an exchange to which section 354,355, or 356 applies (or would, but for section 367, apply) shall be deemed an acquisition from the foreign issuer 26 USC 354or obligor in exchange for its stock or for its debt obligations. ^^^' ^^^' For purposes of this paragraph, in determining whether section 354, 355, or 356 applies, or would apply, to any transaction— " (A) such transaction shall, if it took place before the date of the enactment of this chapter, be treated as taking place on such date, and " (B) section 368(a)(1)(B) shall be treated as permitting 26 USC 368. the receipt by a United States person of money or other property in addition to voting stock.
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