Conduit Financing Arrangements, 76895-76896 [2011-31672]
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Federal Register / Vol. 76, No. 237 / Friday, December 9, 2011 / Rules and Regulations
experiencing an outbreak of BRD must
be initiated during the first 45 days of
the production period, shall not exceed
a single 14-consecutive-day treatment,
should not occur concurrent with or
following administration of an
injectable macrolide, and should not
occur within 3 days following
administration of a nonmacrolide
injectable BRD therapy. Tilmicosin
medicated feed treatment has not been
evaluated in cattle with severe clinical
disease. Cattle with severe clinical
illness should be evaluated for
individual treatment with an alternative
non-macrolide therapy.
*
*
*
*
*
(e) Conditions of use. It is used in feed
as follows:
Tilmicosin phosphate
in grams/ton
Indications for use
Limitations
(1) 181 to 363 ..........
Swine: For the control of swine respiratory disease
associated with Actinobacillus pleuropneumoniae
and Pasteurella multocida.
(2) 568 to 757 ..........
Cattle: For the control of bovine respiratory disease
(BRD) associated with Mannheimia haemolytica,
Pasteurella multocida, and Histophilus somni in
groups of beef and nonlactating dairy cattle,
where active BRD has been diagnosed in at least
10 percent of the animals in the group.
Feed continuously as the sole ration for 21-day period, beginning approximately 7 days before an
anticipated disease outbreak. The safety of
tilmicosin has not been established in male swine
intended for breeding purposes. Swine intended
for human consumption must not be slaughtered
within 7 days of the last treatment with this drug
product.
Feed continuously for 14 days to provide 12.5 milligrams/kilogram/head/day. The safety of tilmicosin
has not been established in cattle intended for
breeding purposes. This drug product is not approved for use in female dairy cattle 20 months of
age or older. Use in these cattle may cause drug
residues in milk. This drug product is not approved for use in calves intended to be processed for veal.
A withdrawal period has not been established in
preruminating calves. Cattle intended for human
consumption must not be slaughtered within 28
days of the last treatment with this drug product.
Dated: December 5, 2011.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2011–31613 Filed 12–8–11; 8:45 am]
SUPPLEMENTARY INFORMATION:
BILLING CODE 4160–01–P
Background
Quyen P. Huynh at (202) 622–3880 (not
a toll-free number).
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9562]
RIN 1545–BH77
Conduit Financing Arrangements
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulation.
AGENCY:
This document contains final
regulations relating to conduit financing
arrangements. The final regulations
apply to multiple-party financing
arrangements that are effected through
disregarded entities, and are necessary
in order to determine which of those
arrangements should be recharacterized
as a conduit financing arrangement.
DATES: Effective Date: These regulations
are effective on December 9, 2011.
Applicability Date: These regulations
apply to payments made on or after
December 9, 2011.
sroberts on DSK5SPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
15:52 Dec 08, 2011
Jkt 226001
On August 10, 1995, the Department
of the Treasury (Treasury Department)
and the Internal Revenue Service (IRS)
published final regulations under Treas.
Reg. § 1.881–3 relating to conduit
financing arrangements pursuant to the
authority granted by section 7701(l) of
the Internal Revenue Code (the conduit
financing regulations). See TD 8611
(1995–37 IRB 20; 60 FR 40997). On
December 22, 2008, the Treasury
Department and the IRS published in
the Federal Register (73 FR 246) a
notice of proposed rulemaking (REG–
113462–08) that proposed amending
§ 1.881–3(a)(2)(i)(C) of the conduit
financing regulations to treat an entity
disregarded as an entity separate from
its owner for U.S. tax purposes as a
person for purposes of determining
whether a conduit financing
arrangement exists. The proposed
regulations were proposed to be
effective as of the date final regulations
are published in the Federal Register. In
addition, the preamble to the proposed
regulations requested comments on
whether ‘‘hybrid instruments’’
(instruments treated as debt for foreign
law purposes and equity for U.S.
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
76895
Sponsor
000986
000986
purposes) should constitute per se
‘‘financing transactions’’ under § 1.881–
3(a)(2)(ii)(A) and part of a ‘‘financing
arrangement’’ within the meaning of
§ 1.881–3(a)(2)(i)(A), or whether, at a
minimum, certain hybrid instruments
should be so treated, depending on
specific factors or criteria.
Only one comment letter responding
to the notice of proposed rulemaking
was received. No public hearing was
requested or held. After consideration of
the comment, this Treasury decision
adopts the proposed regulations with
minor edits to Example 3 and to clarify
that the effective date of the final
regulations also applies to new Example
3.
Explanation and Summary of Comment
The comment supported the proposed
regulations and their interpretation of
the term ‘‘person’’ to include a business
entity that is disregarded as an entity
separate from its single member owner
under § 301.7701–1 through § 301.7701–
3. The comment stated that to disregard
an entity that is ‘‘regarded’’ for purposes
of claiming treaty benefits would be
inconsistent with the policy and
purpose of the anti-conduit financing
regulations.
As relates to hybrid instruments, the
comment did not support either
approach raised in the preamble to the
proposed regulations, expressing both
policy and administrative concerns with
E:\FR\FM\09DER1.SGM
09DER1
76896
Federal Register / Vol. 76, No. 237 / Friday, December 9, 2011 / Rules and Regulations
each. The comment stated that any
specific abuses that the Treasury
Department and the IRS were concerned
about could be better addressed by a
more targeted rule that described the
specific transactions and limited the
application of the regulations to those
transactions. In light of the wide array
of considerations raised, the Treasury
Department and the IRS have decided to
continue to study the area and not to
provide any specific rules on hybrid
instruments as part of this regulation
package. Accordingly, these regulations
are finalized without change, except to
clarify that the effective date of the final
regulations also applies to new Example
3 and to make minor edits to Example
3. The Treasury Department and the IRS
continue to solicit comments on the
treatment of hybrid instruments in
financing transactions.
No inference should be drawn from
any provision of these final regulations
as to the treatment of financing
transactions entered into with
disregarded entities before the effective
date of these final regulations or
involving hybrid instruments.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
is hereby certified that this regulation
will not have a significant economic
impact on a substantial number of small
entities. Accordingly, a regulatory
flexibility analysis is not required.
Pursuant to section 7805(f) of the
Internal Revenue Code, the notice of
proposed rulemaking preceding this
regulation was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these
regulations is Quyen P. Huynh of the
Office of Associate Chief Counsel
(International). However, other
personnel from the IRS and the Treasury
Department participated in their
development.
sroberts on DSK5SPTVN1PROD with RULES
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
VerDate Mar<15>2010
15:52 Dec 08, 2011
Jkt 226001
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.881–3 is amended
by:
■ 1. Removing the language ‘‘district
director’’ throughout this section and
adding ‘‘director of field operations’’ in
its place.
■ 2. Removing the language ‘‘§ 1.1441–
3(j)’’ throughout this section and adding
‘‘§ 1.1441–3(g)’’ in its place.
■ 3. Removing the language ‘‘§ 1.1441–
7(d)’’ throughout this section and
adding ‘‘§ 1.1441–7(f)’’ in its place.
■ 4. In the last sentence of paragraph
(a)(3)(ii)(B), removing the second
‘‘financed’’ and adding ‘‘financing’’ in
its place.
■ 5. Removing the parenthetical
language ‘‘(or a similar interest in a
partnership or trust)’’ in paragraphs
(a)(2)(ii)(A)(2) and (a)(2)(ii)(B)(1) and
adding ‘‘(or a similar interest in a
partnership, trust, or other person)’’ in
its place.
■ 6. Adding a new paragraph (a)(2)(i)(C).
■ 7. In paragraph (e), redesignating
Examples 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23,
24, and 25 as Examples 4, 5, 6, 7, 8, 9,
10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20,
21, 22, 23, 24, 25, and 26, respectively.
■ 8. Adding a new Example 3 in
paragraph (e).
■ 9. Revising the paragraph heading and
adding a new sentence at the end of
paragraph (f).
The revisions and additions read as
follows:
■
§ 1.881–3
Conduit financing arrangements.
*
*
*
*
*
(a) * * *
(2) * * *
(i) * * *
(C) Treatment of disregarded entities.
For purposes of this section, the term
person includes a business entity that is
disregarded as an entity separate from
its single member owner under
§ 301.7701–1 through § 301.7701–3.
*
*
*
*
*
(e) Examples. * * *
Example 3. Participation of a disregarded
intermediate entity. The facts are the same as
in Example 2, except that FS is an entity that
is disregarded as an entity separate from its
owner, FP, under § 301.7701–3. Under
paragraph (a)(2)(i)(C) of this section, FS is a
person and, therefore, may itself be an
intermediate entity that is linked by
financing transactions to other persons in a
financing arrangement. The DS note held by
FS and the FS note held by FP are financing
transactions within the meaning of paragraph
PO 00000
Frm 00024
Fmt 4700
Sfmt 4700
(a)(2)(ii) of this section, and together
constitute a financing arrangement within the
meaning of paragraph (a)(2)(i) of this section.
*
*
*
*
*
(f) Effective/applicability date. * * *
Paragraph (a)(2)(i)(C) and Example 3 of
paragraph (e) of this section apply to
payments made on or after December 9,
2011.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: November 29, 2011.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 2011–31672 Filed 12–8–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
46 CFR Part 8
[Docket No. USCG–2011–0745]
RIN 1625–AB79
International Anti-Fouling System
Certificate
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is amending
its vessel inspection regulations to add
the International Anti-fouling System
(IAFS) Certificate to the list of
certificates a recognized classification
society may issue on behalf of the Coast
Guard. This action is being taken in
response to recently enacted legislation
implementing the International
Convention on the Control of Harmful
Anti-fouling Systems on Ships, 2001.
This final rule will enable recognized
classification societies to apply to the
Coast Guard for authorization to issue
IAFS Certificates to vessel owners on
behalf of the Coast Guard.
DATES: This final rule is effective
January 9, 2012.
ADDRESSES: Comments and material
received from the public, if any, as well
as documents mentioned in this
preamble as being available in the
docket, are part of docket USCG–2011–
0745 and are available for inspection or
copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
You may also find this docket on the
SUMMARY:
E:\FR\FM\09DER1.SGM
09DER1
Agencies
[Federal Register Volume 76, Number 237 (Friday, December 9, 2011)]
[Rules and Regulations]
[Pages 76895-76896]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31672]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9562]
RIN 1545-BH77
Conduit Financing Arrangements
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulation.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to conduit
financing arrangements. The final regulations apply to multiple-party
financing arrangements that are effected through disregarded entities,
and are necessary in order to determine which of those arrangements
should be recharacterized as a conduit financing arrangement.
DATES: Effective Date: These regulations are effective on December 9,
2011.
Applicability Date: These regulations apply to payments made on or
after December 9, 2011.
FOR FURTHER INFORMATION CONTACT: Quyen P. Huynh at (202) 622-3880 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On August 10, 1995, the Department of the Treasury (Treasury
Department) and the Internal Revenue Service (IRS) published final
regulations under Treas. Reg. Sec. 1.881-3 relating to conduit
financing arrangements pursuant to the authority granted by section
7701(l) of the Internal Revenue Code (the conduit financing
regulations). See TD 8611 (1995-37 IRB 20; 60 FR 40997). On December
22, 2008, the Treasury Department and the IRS published in the Federal
Register (73 FR 246) a notice of proposed rulemaking (REG-113462-08)
that proposed amending Sec. 1.881-3(a)(2)(i)(C) of the conduit
financing regulations to treat an entity disregarded as an entity
separate from its owner for U.S. tax purposes as a person for purposes
of determining whether a conduit financing arrangement exists. The
proposed regulations were proposed to be effective as of the date final
regulations are published in the Federal Register. In addition, the
preamble to the proposed regulations requested comments on whether
``hybrid instruments'' (instruments treated as debt for foreign law
purposes and equity for U.S. purposes) should constitute per se
``financing transactions'' under Sec. 1.881-3(a)(2)(ii)(A) and part of
a ``financing arrangement'' within the meaning of Sec. 1.881-
3(a)(2)(i)(A), or whether, at a minimum, certain hybrid instruments
should be so treated, depending on specific factors or criteria.
Only one comment letter responding to the notice of proposed
rulemaking was received. No public hearing was requested or held. After
consideration of the comment, this Treasury decision adopts the
proposed regulations with minor edits to Example 3 and to clarify that
the effective date of the final regulations also applies to new Example
3.
Explanation and Summary of Comment
The comment supported the proposed regulations and their
interpretation of the term ``person'' to include a business entity that
is disregarded as an entity separate from its single member owner under
Sec. 301.7701-1 through Sec. 301.7701-3. The comment stated that to
disregard an entity that is ``regarded'' for purposes of claiming
treaty benefits would be inconsistent with the policy and purpose of
the anti-conduit financing regulations.
As relates to hybrid instruments, the comment did not support
either approach raised in the preamble to the proposed regulations,
expressing both policy and administrative concerns with
[[Page 76896]]
each. The comment stated that any specific abuses that the Treasury
Department and the IRS were concerned about could be better addressed
by a more targeted rule that described the specific transactions and
limited the application of the regulations to those transactions. In
light of the wide array of considerations raised, the Treasury
Department and the IRS have decided to continue to study the area and
not to provide any specific rules on hybrid instruments as part of this
regulation package. Accordingly, these regulations are finalized
without change, except to clarify that the effective date of the final
regulations also applies to new Example 3 and to make minor edits to
Example 3. The Treasury Department and the IRS continue to solicit
comments on the treatment of hybrid instruments in financing
transactions.
No inference should be drawn from any provision of these final
regulations as to the treatment of financing transactions entered into
with disregarded entities before the effective date of these final
regulations or involving hybrid instruments.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It is hereby
certified that this regulation will not have a significant economic
impact on a substantial number of small entities. Accordingly, a
regulatory flexibility analysis is not required. Pursuant to section
7805(f) of the Internal Revenue Code, the notice of proposed rulemaking
preceding this regulation was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small business.
Drafting Information
The principal author of these regulations is Quyen P. Huynh of the
Office of Associate Chief Counsel (International). However, other
personnel from the IRS and the Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.881-3 is amended by:
0
1. Removing the language ``district director'' throughout this section
and adding ``director of field operations'' in its place.
0
2. Removing the language ``Sec. 1.1441-3(j)'' throughout this section
and adding ``Sec. 1.1441-3(g)'' in its place.
0
3. Removing the language ``Sec. 1.1441-7(d)'' throughout this section
and adding ``Sec. 1.1441-7(f)'' in its place.
0
4. In the last sentence of paragraph (a)(3)(ii)(B), removing the second
``financed'' and adding ``financing'' in its place.
0
5. Removing the parenthetical language ``(or a similar interest in a
partnership or trust)'' in paragraphs (a)(2)(ii)(A)(2) and
(a)(2)(ii)(B)(1) and adding ``(or a similar interest in a partnership,
trust, or other person)'' in its place.
0
6. Adding a new paragraph (a)(2)(i)(C).
0
7. In paragraph (e), redesignating Examples 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25 as
Examples 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20,
21, 22, 23, 24, 25, and 26, respectively.
0
8. Adding a new Example 3 in paragraph (e).
0
9. Revising the paragraph heading and adding a new sentence at the end
of paragraph (f).
The revisions and additions read as follows:
Sec. 1.881-3 Conduit financing arrangements.
* * * * *
(a) * * *
(2) * * *
(i) * * *
(C) Treatment of disregarded entities. For purposes of this
section, the term person includes a business entity that is disregarded
as an entity separate from its single member owner under Sec.
301.7701-1 through Sec. 301.7701-3.
* * * * *
(e) Examples. * * *
Example 3. Participation of a disregarded intermediate entity.
The facts are the same as in Example 2, except that FS is an entity
that is disregarded as an entity separate from its owner, FP, under
Sec. 301.7701-3. Under paragraph (a)(2)(i)(C) of this section, FS
is a person and, therefore, may itself be an intermediate entity
that is linked by financing transactions to other persons in a
financing arrangement. The DS note held by FS and the FS note held
by FP are financing transactions within the meaning of paragraph
(a)(2)(ii) of this section, and together constitute a financing
arrangement within the meaning of paragraph (a)(2)(i) of this
section.
* * * * *
(f) Effective/applicability date. * * * Paragraph (a)(2)(i)(C) and
Example 3 of paragraph (e) of this section apply to payments made on or
after December 9, 2011.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: November 29, 2011.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2011-31672 Filed 12-8-11; 8:45 am]
BILLING CODE 4830-01-P