81 STAT.]
PUBLIC LAW 90-59-JULY 31, 1967
" (F) such corporation does not acquire any stock or debt obligations of foreign issuers or foreign obligors (other than debt obligations described in subparagraph (A)), or any stock or debt obhgations of a domestic corporation described in section 4912(b)(3), the acquisition of which would have been subject to the tax imposed by section 4911 if such corporation had not elected to be treated as a foreign issuer or obligor under subparagraph (H), " (G) such corporation, in a manner satisfactory to the Secretary or his delegate, identifies the certificates representing its sitock and debt obligations, and maintains such records and accounts and submits such reports as may be necessary to establish that the requirements of the foregoing subparagraphs have been met, and " (H) such corporation elects to be treated as a foreign issuer or obligor for purposes of this chapter. The election under subparagraph (H) shall be made on or before the 60th day after the date of the enactment of this paragraph or the 60th day after the organization of the corporation, whichever is later, under regulations prescribed by the Secretary or his delegate. Any such election shall be effective as of the date thereof and shall remain in effect until revoked. If, at any time, the corporation ceases to meet any requirement of subparagraph (A), (B), (C), (D), (E), (F), or (G), the election shall thereupon be deemed revoked. When an election is revoked, no further election may be made. If an election is revoked, the corporation shall incur liability at the time of such revocation for the tax imposed by section 4911 with respect to all debt obligations described in subparagraph (A) (and all stock and debt obligations described in subparagraph (F)) which were acquired by it during the period for which the election was in effect and which are held by it at the time of such revocation; and the amount of such tax shall be equal to the amount of tax for which the corporation would be liable under such section if it had acquired such stock or debt obligations immediately after such revocation. For purposes of sections 4912 and 4915, a corporation which has made an election under subparagraph (H) shall, during the period for which such election is in effect, be treated with respect to acquisitions from such corporation, as a foreign corporation which is not formed or availed of for the principal purpose described in section 4915(c)(1)." (2) Section 4920(a)(4)(C) (as amended by subsection (j)(3)) is amended by inserting after "subparagraph (B) or (C) of paragraph (3) " the following: "or in paragraph (3B)". (3) Section 4915(c) is amended by redesignating paragraph (3) as paragraph (4), and by inserting after paragraph (2) the following new paragraph: "(3) FOREIGN FINANCING COMPANY.—A foreign corporation— " (A) 50 percent or more of the voting power of all classes of stock of which is owned directly or indirectly (within the meaning of subsection (a)) by a domestic corporation (or by one or more includible corporations in tin affiliated group, as defined in section 48(c)(3)(C), of which such domestic corporation is a member), " (B) which, if it were a domestic corporation, would be eligible to make an election under section 4920(a) (3B), and
163
'^^ ^*^*- ^^^• Ante,
p. 145.
Ante,
p. 161.
^^ ^tat. 826.
76 Stat. 969. Ante,
p. 161.
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