Page:United States Statutes at Large Volume 114 Part 4.djvu/363

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PUBLIC LAW 106-519—NOV. 15, 2000 114 STAT. 2425 "(A) an amount equal to such income multiplied by the international boycott factor determined under section 999, and "(B) any illegal bribe, kickback, or other payment (within the meaning of section 162(c)) paid by or on behalf of the taxpayer directly or indirectly to an official, employee, or agent in fact of a government. "(b) FOREIGN TRADE INCOME. —For purposes of this subpart— "(1) IN GENERAL.— The term 'foreign trade income' means the taxable income of the taxpayer attributable to foreign trading gross receipts of the taxpayer. "(2) SPECIAL RULE FOR COOPERATIVES.— In any case in which an organization to which part I of subchapter T applies which is engaged in the marketing of agricultural or horticultural products sells qualifying foreign trade property, in computing the taxable income of such cooperative, there shall not be taken into account any deduction allowable under subsection (b) or (c) of section 1382 (relating to patronage dividends, per-unit retain allocations, and nonpatronage distributions). "(c) FOREIGN SALE AND LEASING INCOME.— For purposes of this section— "(1) IN GENERAL.—The term 'foreign sale and leasing income' means, with respect to any transaction— "(A) foreign trade income properly allocable to activities which— "(i) are described in paragraph (2)(A)(i) or (3) of section 942(b), and "(ii) are performed by the taxpayer (or any person acting under a contract with such taxpayer) outside the United States, or "(B) foreign trade income derived by the taxpayer in connection with the lease or rental of qualifying foreign trade property for use by the lessee outside the United States. " (2) SPECIAL RULES FOR LEASED PROPERTY.— "(A) SALES INCOME.— The term 'foreign sale and leasing income' includes any foreign trade income derived by the taxpayer from the sale of property described in paragraph (1)(B). "(B) LIMITATION IN CERTAIN CASES.— Except as provided in regulations, in the case of property which— "(i) was manufactured, produced, grown, or extracted by the taxpayer, or "(ii) was acquired by the taxpayer from a related person for a price which was not determined in accordance with the rules of section 482, the amount of foreign trade income which may be treated as foreign sale and leasing income under paragraph (1)(B) or subparagraph (A) of this paragraph with respect to any transaction involving such property shall not exceed the amount which would have been determined if the taxpayer had acquired such property for the price determined in accordance with the rules of section 482. " (3) SPECIAL RULES. — "(A) EXCLUDED PROPERTY. —Foreign sale and leasing income shall not include any income properly allocable