26 U.S. Code § 999 - Reports by taxpayers; determinations
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(a)
International boycott reports by taxpayers
(1)
Report required
If any person, or a member of a controlled group (within the meaning of section
993
(a)(3)) which includes that person, has operations in, or related to—
(A)
a country (or with the government, a company, or a national of a country) which is on the list maintained by the Secretary under paragraph (3), or
(B)
any other country (or with the government, a company, or a national of that country) in which such person or such member had operations during the taxable year if such person (or, if such person is a foreign corporation, any United States shareholder of that corporation) knows or has reason to know that participation in or co-operation with an international boycott is required as a condition of doing business within such country or with such government, company, or national,
that person or shareholder (within the meaning of section
951
(b)) shall report such operations to the Secretary at such time and in such manner as the Secretary prescribes, except that in the case of a foreign corporation such report shall be required only of a United States shareholder (within the meaning of such section) of such corporation.
(2)
Participation and cooperation; request therefor
A taxpayer shall report whether he, a foreign corporation of which he is a United States shareholder, or any member of a controlled group which includes the taxpayer or such foreign corporation has participated in or cooperated with an international boycott at any time during the taxable year, or has been requested to participate in or cooperate with such a boycott, and, if so, the nature of any operation in connection with which there was participation in or cooperation with such boycott (or there was a request to participate or cooperate).
(b)
Participation in or cooperation with an international boycott
(1)
General rule
If the person or a member of a controlled group (within the meaning of section
993
(a)(3)) which includes the person participates in or cooperates with an international boycott in the taxable year, all operations of the taxpayer or such group in that country and in any other country which requires participation in or cooperation with the boycott as a condition of doing business within that country, or with the government, a company, or a national of that country, shall be treated as operations in connection with which such participation or cooperation occurred, except to the extent that the person can clearly demonstrate that a particular operation is a clearly separate and identifiable operation in connection with which there was no participation in or cooperation with an international boycott.
(2)
Special rule
(A)
Nonboycott operations
A clearly separate and identifiable operation of a person, or of a member of the controlled group (within the meaning of section
993
(a)(3)) which includes that person, in or related to any country within the group of countries referred to in paragraph (1) shall not be treated as an operation in or related to a group of countries associated in carrying out an international boycott if the person can clearly demonstrate that he, or that such member, did not participate in or cooperate with the international boycott in connection with that operation.
(3)
Definition of boycott participation and cooperation
For purposes of this section, a person participates in or cooperates with an international boycott if he agrees—
(A)
as a condition of doing business directly or indirectly within a country or with the government, a company, or a national of a country—
(i)
to refrain from doing business with or in a country which is the object of the boycott or with the government, companies, or nationals of that country;
(ii)
to refrain from doing business with any United States person engaged in trade in a country which is the object of the boycott or with the government, companies, or nationals of that country;
(iii)
to refrain from doing business with any company whose ownership or management is made up, all or in part, of individuals of a particular nationality, race, or religion, or to remove (or refrain from selecting) corporate directors who are individuals of a particular nationality, race, or religion; or
(B)
as a condition of the sale of a product to the government, a company, or a national of a country, to refrain from shipping or insuring that product on a carrier owned, leased, or operated by a person who does not participate in or cooperate with an international boycott (within the meaning of subparagraph (A)).
(4)
Compliance with certain laws
This section shall not apply to any agreement by a person (or such member)—
(A)
to meet requirements imposed by a foreign country with respect to an international boycott if United States law or regulations, or an Executive Order, sanctions participation in, or cooperation with, that international boycott,
(c)
International boycott factor
(1)
International boycott factor
For purposes of sections
908
(a),
952
(a)(3), and
995
(b)(1)(F)(ii), the international boycott factor is a fraction, determined under regulations prescribed by the Secretary, the numerator of which reflects the world-wide operations of a person (or, in the case of a controlled group (within the meaning of section
993
(a)(3)) which includes that person, of the group) which are operations in or related to a group of countries associated in carrying out an international boycott in or with which that person or a member of that controlled group has participated or cooperated in the taxable year, and the denominator of which reflects the world-wide operations of that person or group.
(2)
Specifically attributable taxes and income
If the taxpayer clearly demonstrates that the foreign taxes paid and income earned for the taxable year are attributable to specific operations, then, in lieu of applying the international boycott factor for such taxable year, the amount of the credit disallowed under section
908
(a), the addition to subpart F income under section
952
(a)(3), and the amount of deemed distribution under section
995
(b)(1)(F)(ii) for the taxable year, if any, shall be the amount specifically attributable to the operations in which there was participation in or cooperation with an international boycott under section
999
(b)(1).
(d)
Determination with respect to particular operations
Upon a request made by the taxpayer, the Secretary shall issue a determination with respect to whether a particular operation of a person, or of a member of a controlled group which includes that person, constitutes participation in or cooperation with an international boycott. The Secretary may issue such a determination in advance of such operation in cases which are of such a nature that an advance determination is possible and appropriate under the circumstances. If the request is made before the operation is commenced, or before the end of a taxable year in which the operation is carried out, the Secretary may decline to issue such a determination before close of the taxable year.
Source
(Added Pub. L. 94–455, title X, § 1064(a),Oct. 4, 1976, 90 Stat. 1650; amended Pub. L. 95–600, title VII, § 703(h)(2), (3),Nov. 6, 1978, 92 Stat. 2940; Pub. L. 98–369, div. A, title VIII, § 802(c)(3),July 18, 1984, 98 Stat. 999; Pub. L. 99–514, title XVIII, § 1876(p)(3),Oct. 22, 1986, 100 Stat. 2902; Pub. L. 106–519, § 4(5),Nov. 15, 2000, 114 Stat. 2433; Pub. L. 108–357, title I, § 101(b)(8),Oct. 22, 2004, 118 Stat. 1423.)
Amendments
2000—Subsec. (c)(1). Pub. L. 106–519inserted “941(a)(5),” after “908(a),”.
1986—Subsec. (c)(1), (2). Pub. L. 99–514repealed section 802(c)(3) ofPub. L. 98–369thereby restoring former text. See 1984 Amendment note below.
1984—Subsec. (c)(1), (2). Pub. L. 98–369which substituted “995(b)(1)(F)(i)” for “995(b)(1)(F)(ii)” wherever appearing was repealed. See 1986 Amendment note above.
1978—Subsec. (c)(1). Pub. L. 95–600, § 703(h)(2), substituted “995(b)(1)(F)(ii)” for “995(b)(3)”.
Subsec. (c)(2). Pub. L. 95–600, § 703(h)(3), substituted “995(b)(1)(F)(ii)” for “995(b)(1)(D)(ii)”.
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–357applicable to transactions after Dec. 31, 2004, see section 101(c) ofPub. L. 108–357, set out as a note under section
56 of this title.
Effective Date of 2000 Amendment
Amendment by Pub. L. 106–519applicable to transactions after Sept. 30, 2000, with special rules relating to existing foreign sales corporations, see section 5 ofPub. L. 106–519, set out as a note under section
56 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 ofPub. L. 99–514, set out as a note under section
48 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369applicable to transactions after Dec. 31, 1984, in taxable years ending after such date, see section 805(a)(1) ofPub. L. 98–369, as amended, set out as a note under section
245 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–600effective on Oct. 4, 1976, see section 703(r) ofPub. L. 95–600, set out as a note under section
46 of this title.
Effective Date
Section applicable to participation in or cooperation with an international boycott more than 30 days after Oct. 4, 1976, with special provisions for existing contracts, see section 1066(a) ofPub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section
908 of this title.
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and
1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 ofPub. L. 99–514, as amended, set out as a note under section
401 of this title.
Reports by the Secretary
Pub. L. 94–455, title X, § 1067,Oct. 4, 1976, 90 Stat. 1654, as amended by Pub. L. 98–369, div. A, title IV, § 441(c),July 18, 1984, 98 Stat. 815, which required the Secretary to transmit a report every four years to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate relating to reports filed under section
999
(a) of this title and describing the administration of provisions relating to international boycott activity, terminated, effective May 15, 2000, pursuant to section 3003 ofPub. L. 104–66, as amended, set out as a note under section
1113 of Title
31, Money and Finance. See, also, page 141 of House Document No. 103–7.
Written determinations for this section
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- Value of Contribution : 2010-06-18
- Reports by Taxpayers; Determinations : 2010-06-18
- Substantiation : 2010-06-18
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