Treatment of Gain Recognized With Respect to Stock in Certain Foreign Corporations Upon Distributions, 24380-24381 [2012-9760]
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24380
Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Rules and Regulations
(6) The country of origin of the
merchandise;
(7) The name and address of the
exporter; and
(8) The name and address of the
importer.
(e) Samples made available to the
owner of the mark after seizure. At any
time following a seizure of merchandise
bearing a counterfeit mark under this
section, CBP may provide a sample and
its retail packaging, in its condition as
presented for examination, to the owner
of the mark for examination, testing, or
other use in pursuit of a related private
civil remedy for trademark
infringement. To obtain a sample under
this paragraph, the owner of the mark
must furnish CBP a bond in the form
and amount specified by the port
director, conditioned to hold the United
States, its officers and employees, and
the importer or owner of the imported
article harmless from any loss or
damage to the sample resulting from the
furnishing of a sample by CBP to the
owner of the mark. CBP may demand
the return of the sample at any time.
The owner of the mark must return the
sample to CBP upon demand or at the
conclusion of the examination, testing,
or other use in pursuit of a related
private civil remedy for infringement. In
the event that the sample is damaged,
destroyed, or lost while in the
possession of the owner of the mark, the
owner must, in lieu of return of the
sample, certify to CBP that: ‘‘The sample
described as [insert description] and
provided pursuant to 19 CFR 133.21(e)
was (damaged/destroyed/lost) during
examination, testing, or other use.’’
(f) Consent of the mark owner; failure
to make appropriate disposition. The
owner of the mark, within thirty days
from notification of seizure, may
provide written consent to the importer
allowing the importation of the seized
merchandise in its condition as
imported or its exportation, entry after
obliteration of the mark, or other
appropriate disposition. Otherwise, the
merchandise will be disposed of in
accordance with § 133.52 of this part,
subject to the importer’s right to petition
for relief from forfeiture under the
provisions of part 171 of this chapter.
§ 133.22
mstockstill on DSK4VPTVN1PROD with RULES
§ 133.26
[Amended]
6. Section 133.26 is amended by
removing from the first sentence the
words ‘‘subject to the restrictions of
§ 133.22 or § 133.23 of this subpart’’ and
adding in their place the words ‘‘subject
to the restrictions of § 133.21, § 133.22
or § 133.23 of this subpart’’.
■
PART 151—EXAMINATION, SAMPLING
AND TESTING OF MERCHANDISE
7. The general authority citation for
part 151 continues to read as follows:
■
Authority: 19 U.S.C. 66, 1202 (General
Note 3(i) and (j), Harmonized Tariff Schedule
of the United States (HTSUS), 1624;
*
*
*
*
*
8. Section 151.16(a) is revised to read
as follows:
■
§ 151.16
Detention of merchandise.
(a) Exemptions from applicability.
The provisions of this section are not
applicable to detentions effected by CBP
on behalf of other agencies of the U.S.
Government in whom the determination
of admissibility is vested and to
detentions arising from possibly
piratical copies (see part 133, subpart E,
of this Chapter), imports of articles
bearing counterfeit marks or suspected
counterfeit marks, goods bearing marks
which are confusingly similar to
recorded trademarks, or restricted gray
market merchandise (see part 133,
subpart C, of this chapter.)
*
*
*
*
*
David V. Aguilar,
Acting Commissioner, U.S. Customs and
Border Protection.
Approved: April 18, 2012.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2012–9762 Filed 4–23–12; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
[Amended]
4. Section 133.22(f), first sentence, is
amended by removing the words
‘‘within the 30-day period of detention’’
and adding in their place the words
‘‘within the period of detention as
provided in § 133.25 of this subpart’’.
■
§ 133.23
‘‘within the 30-day period of detention’’
and adding in their place the words
‘‘within the period of detention as
provided in § 133.25 of this subpart’’.
[Amended]
5. Section 133.23(f), first sentence, is
amended by removing the words
■
VerDate Mar<15>2010
16:38 Apr 23, 2012
Jkt 226001
26 CFR Part 1
[TD 9585]
RIN 1545–BI41
Treatment of Gain Recognized With
Respect to Stock in Certain Foreign
Corporations Upon Distributions
Internal Revenue Service (IRS),
Treasury.
AGENCY:
PO 00000
Frm 00040
Fmt 4700
Sfmt 4700
Final regulations and removal of
temporary regulations.
ACTION:
This document contains final
regulations relating to the
characterization of gain recognized with
respect to stock in certain foreign
corporations upon distributions. The
regulations finalize proposed
regulations and remove temporary
regulations that characterize gain
recognized with respect to stock in
foreign corporations upon distributions
as a deemed dividend in certain
situations. The regulations affect certain
persons that recognize gain with respect
to stock in connection with the receipt
of a distribution of property from a
foreign corporation.
DATES: Effective Date: These regulations
are effective on April 24, 2012.
Applicability Date: These regulations
apply to distributions occurring on or
after February 10, 2009.
FOR FURTHER INFORMATION CONTACT:
Ryan A. Bowen, (202) 622–3860 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
On February 11, 2009, the IRS and the
Department of the Treasury (the
Treasury Department) published
temporary and proposed regulations in
the Federal Register (REG–147636–08,
74 FR 6824; TD 9444, 2009–1 CB 603)
(the temporary or proposed regulations,
as applicable, and collectively, the 2009
regulations). The 2009 regulations, in
part, provide that for purposes of
section 1248(a), gain recognized under
section 301(c)(3) in connection with the
receipt of a distribution of property from
a foreign corporation with respect to its
stock shall be treated as gain from the
sale or exchange of the stock of such
foreign corporation (2009 section 1248
regulations).
The 2009 regulations also addressed
the application of section 367 to certain
related party stock transactions that are
recharacterized under section 304. As
described in Notice 2012–15 (2012–9
IRB 495 (February 27, 2012)) (see
§ 601.601(d)(2)(ii)(b) of this chapter), the
IRS and the Treasury Department intend
to amend the regulations under section
367 to provide that the section 351
exchange that is deemed to occur in a
section 304 transaction is subject to
section 367(a) and (b), as applicable.
Accordingly, this Treasury decision
does not finalize the portions of the
2009 regulations that address the
interaction of sections 304 and 367.
Those portions of the 2009 regulations
will be withdrawn in separate published
guidance (REG–104400–12).
E:\FR\FM\24APR1.SGM
24APR1
Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Rules and Regulations
No public hearing on the 2009 section
1248 regulations was requested or held
and no written comments were
received. This Treasury decision adopts
the 2009 section 1248 regulations, with
one modification to remove a deadwood
provision, as final regulations under
section 1248(a). This Treasury decision
also removes the temporary regulations
under section 1248(a).
mstockstill on DSK4VPTVN1PROD with RULES
Explanation of Provisions
The final regulations provide that gain
recognized under section 301(c)(3) on
the receipt of a distribution of property
from a foreign corporation with respect
to its stock shall be treated for purposes
of section 1248(a) as gain from the sale
or exchange of the stock of such
corporation. For purposes of section
1248(a), a sale or exchange also includes
a distribution that gives rise to gain with
respect to stock under section 302(a) or
331(a). The final regulations ensure that
the earnings and profits of lower-tier
foreign subsidiaries described in section
1248(c)(2) are taken into account when
gain is recognized with respect to stock
of a controlled foreign corporation.
The 2009 section 1248 regulations
incorporated a provision from the prior
final regulations under section 1248
providing that section 1248(a) applies to
gain recognized with respect to stock
under section 331(a)(2) by reason of a
partial liquidation of a corporation. The
final regulations remove the reference to
partial liquidations under section
331(a)(2) in order to reflect amendments
made in 1982 by the Tax Equity and
Fiscal Responsibility Act of 1982
(Public Law 97–248, 96 Stat. 324
(1982)), which repealed section
331(a)(2) and provided new rules
regarding redemptions in partial
liquidation under section 302. See
section 302(b)(4) and (e).
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
also has been determined that 5 U.S.C.
553(b) and (d) do not apply to these
regulations. Pursuant to the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), it
is hereby certified that this rule will not
have a significant economic impact on
a substantial number of small entities.
These regulations primarily will affect
large domestic corporations. Thus, the
number of affected small entities will
not be substantial. 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
VerDate Mar<15>2010
16:38 Apr 23, 2012
Jkt 226001
Small Business Administration for
comments on its impact on small
business.
Drafting Information
The principal author of these
regulations is Ryan A. Bowen of the
Office of Associate Chief Counsel
(International). However, other
personnel from the IRS and the Treasury
Department participated in their
development.
§ 1.1248–1T
■
24381
[Removed]
Par. 3. Section 1.1248–1T is removed.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: April 13, 2012.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 2012–9760 Filed 4–23–12; 8:45 am]
BILLING CODE 4830–01–P
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
DEPARTMENT OF HOMELAND
SECURITY
Adoption of Amendments to the
Regulations
Coast Guard
Accordingly, 26 CFR part 1 is
amended as follows:
[Docket No. USCG–2011–1159]
PART 1—INCOME TAXES
Security Zone; Passenger Vessel
SAFARI EXPLORER Arrival/Departure,
Kaunakakai Harbor, Molokai, HI
Paragraph 1. The authority citation
for part 1 continues to read as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1248–1 is amended
by:
■ 1. Revising paragraphs (b) and (g)(2).
■ 2. Removing paragraph (h).
■
The revisions read as follows.
§ 1.1248–1 Treatment of gain from certain
sales or exchanges of stock in certain
foreign corporations.
*
*
*
*
*
(b) Sale or exchange. For purposes of
section 1248(a), the term sale or
exchange includes the receipt of a
distribution which is treated as in
exchange for stock under section 302(a)
(relating to distributions in redemption
of stock) or section 331(a) (relating to
distributions in complete liquidation of
a corporation). For purposes of section
1248(a), gain recognized by a
shareholder under section 301(c)(3) in
connection with a distribution of
property by a corporation with respect
to its stock shall be treated as gain from
the sale or exchange of stock of such
corporation.
*
*
*
*
*
(g) * * *
(2) Paragraph (b) of this section
applies to distributions that occur on or
after February 10, 2009.
PO 00000
Frm 00041
Fmt 4700
Sfmt 4700
33 CFR Part 165
RIN 1625–AA87
Coast Guard, DHS.
Temporary interim rule;
reopening of comment period.
AGENCY:
ACTION:
The Coast Guard is reopening
the comment period for the temporary
interim rule that established a
temporary security zone for Kaunakakai
Harbor, including the entrance channel
and offshore area adjacent to the
channel’s entrance during the arrival
and departure of the Passenger Vessel
Safari Explorer in Kaunakakai Harbor,
Molokai, Hawaii. The effective period
for this temporary security zone began
on January 19, 2012 and ends on May
15, 2012. The Coast Guard held informal
public meetings regarding the interim
rule. Following the public meetings, the
Coast Guard prepared a written synopsis
of the public comments received at the
public meetings. This synopsis may be
viewed at https://www.regulations.gov
under docket number USCG–2011–
1159. During this additional comment
period, the Coast Guard invites
comments on how the temporary
interim rule can be improved.
DATES: The Coast Guard will consider
all comments that we receive on or
before May 7, 2012.
ADDRESSES: You may submit written
comments identified by docket number
USCG–2011–1159 using any one of the
following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
(2) Fax: 202–493–2251.
(3) Mail: Docket Management Facility
(M–30), U.S. Department of
Transportation, West Building Ground
SUMMARY:
E:\FR\FM\24APR1.SGM
24APR1
Agencies
[Federal Register Volume 77, Number 79 (Tuesday, April 24, 2012)]
[Rules and Regulations]
[Pages 24380-24381]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9760]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9585]
RIN 1545-BI41
Treatment of Gain Recognized With Respect to Stock in Certain
Foreign Corporations Upon Distributions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to the
characterization of gain recognized with respect to stock in certain
foreign corporations upon distributions. The regulations finalize
proposed regulations and remove temporary regulations that characterize
gain recognized with respect to stock in foreign corporations upon
distributions as a deemed dividend in certain situations. The
regulations affect certain persons that recognize gain with respect to
stock in connection with the receipt of a distribution of property from
a foreign corporation.
DATES: Effective Date: These regulations are effective on April 24,
2012.
Applicability Date: These regulations apply to distributions
occurring on or after February 10, 2009.
FOR FURTHER INFORMATION CONTACT: Ryan A. Bowen, (202) 622-3860 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On February 11, 2009, the IRS and the Department of the Treasury
(the Treasury Department) published temporary and proposed regulations
in the Federal Register (REG-147636-08, 74 FR 6824; TD 9444, 2009-1 CB
603) (the temporary or proposed regulations, as applicable, and
collectively, the 2009 regulations). The 2009 regulations, in part,
provide that for purposes of section 1248(a), gain recognized under
section 301(c)(3) in connection with the receipt of a distribution of
property from a foreign corporation with respect to its stock shall be
treated as gain from the sale or exchange of the stock of such foreign
corporation (2009 section 1248 regulations).
The 2009 regulations also addressed the application of section 367
to certain related party stock transactions that are recharacterized
under section 304. As described in Notice 2012-15 (2012-9 IRB 495
(February 27, 2012)) (see Sec. 601.601(d)(2)(ii)(b) of this chapter),
the IRS and the Treasury Department intend to amend the regulations
under section 367 to provide that the section 351 exchange that is
deemed to occur in a section 304 transaction is subject to section
367(a) and (b), as applicable. Accordingly, this Treasury decision does
not finalize the portions of the 2009 regulations that address the
interaction of sections 304 and 367. Those portions of the 2009
regulations will be withdrawn in separate published guidance (REG-
104400-12).
[[Page 24381]]
No public hearing on the 2009 section 1248 regulations was
requested or held and no written comments were received. This Treasury
decision adopts the 2009 section 1248 regulations, with one
modification to remove a deadwood provision, as final regulations under
section 1248(a). This Treasury decision also removes the temporary
regulations under section 1248(a).
Explanation of Provisions
The final regulations provide that gain recognized under section
301(c)(3) on the receipt of a distribution of property from a foreign
corporation with respect to its stock shall be treated for purposes of
section 1248(a) as gain from the sale or exchange of the stock of such
corporation. For purposes of section 1248(a), a sale or exchange also
includes a distribution that gives rise to gain with respect to stock
under section 302(a) or 331(a). The final regulations ensure that the
earnings and profits of lower-tier foreign subsidiaries described in
section 1248(c)(2) are taken into account when gain is recognized with
respect to stock of a controlled foreign corporation.
The 2009 section 1248 regulations incorporated a provision from the
prior final regulations under section 1248 providing that section
1248(a) applies to gain recognized with respect to stock under section
331(a)(2) by reason of a partial liquidation of a corporation. The
final regulations remove the reference to partial liquidations under
section 331(a)(2) in order to reflect amendments made in 1982 by the
Tax Equity and Fiscal Responsibility Act of 1982 (Public Law 97-248, 96
Stat. 324 (1982)), which repealed section 331(a)(2) and provided new
rules regarding redemptions in partial liquidation under section 302.
See section 302(b)(4) and (e).
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 also has been
determined that 5 U.S.C. 553(b) and (d) do not apply to these
regulations. Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601
et seq.), it is hereby certified that this rule will not have a
significant economic impact on a substantial number of small entities.
These regulations primarily will affect large domestic corporations.
Thus, the number of affected small entities will not be substantial.
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
comments on its impact on small business.
Drafting Information
The principal author of these regulations is Ryan A. Bowen 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 as
follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.1248-1 is amended by:
0
1. Revising paragraphs (b) and (g)(2).
0
2. Removing paragraph (h).
The revisions read as follows.
Sec. 1.1248-1 Treatment of gain from certain sales or exchanges of
stock in certain foreign corporations.
* * * * *
(b) Sale or exchange. For purposes of section 1248(a), the term
sale or exchange includes the receipt of a distribution which is
treated as in exchange for stock under section 302(a) (relating to
distributions in redemption of stock) or section 331(a) (relating to
distributions in complete liquidation of a corporation). For purposes
of section 1248(a), gain recognized by a shareholder under section
301(c)(3) in connection with a distribution of property by a
corporation with respect to its stock shall be treated as gain from the
sale or exchange of stock of such corporation.
* * * * *
(g) * * *
(2) Paragraph (b) of this section applies to distributions that
occur on or after February 10, 2009.
Sec. 1.1248-1T [Removed]
0
Par. 3. Section 1.1248-1T is removed.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: April 13, 2012.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2012-9760 Filed 4-23-12; 8:45 am]
BILLING CODE 4830-01-P