96 STAT. 488
PUBLIC LAW 97-248—SEPT. 3, 1982 "(ii) such acquisition period (up to and including the acquisition date), and "(iii) the 1-year period beginning on the day after the acquisition date. "(B)
26 USC 1504.
EXTENSION
WHERE
THERE
IS P L A N. — The
period
referred to in subparagraph (A) shall also include any period during which the Secretary determine s that the r e was in effect a plan to m a k e a qualified stock purchase plus 1 or more other qualified stock purchases (or asset acquisitions described in subsection (e)) with respect to the t a r g e t corporation or any t a r g e t affiliate. "(5) AFFILIATED GROUP.—The term 'affiliated group' has the m e a n i n g given to such term by section 1504(a) (determined without regard to the exceptions contained in section 1504(b)). "(6) T A R G E T AFFILIATE.—
"(A) IN GENERAL.—A corporation shall be t r e a t e d as a t a r g e t affiliate of the t a r g e t corporation if each of such corporations was, a t any t i m e during so m u c h of the consistency period as ends on the acquisition date of the t a r g e t corporation, a m e m b e r of a n affiliated group which h a d the same common p a r e n t. "(B) CERTAIN FOREIGN CORPORATIONS, ETC.—Except as oth-
erwise provided in regulations (and subject to such conditions as may be provided in regulations)— "(i) the term 'target affiliate' does not include a foreign corporation, a DISC, a corporation described in section 934(b), or a corporation to which a n election under section 936 applies, and "(ii) stock held by a t a r g e t affiliate in a foreign corporation or a domestic corporation which is a DISC or described in section 1248(e) shall be excluded from the operation of this section. "(7) ACQUISITIONS BY PURCHASING CORPORATION INCLUDE ACQUISITIONS BY CORPORATIONS AFFILIATED WITH PURCHASING
CORPORATION.—Except as otherwise provided in regulations, a n acquisition of stock or assets by any m e m b e r of a n affiliated group which includes a purchasing corporation shall be t r e a t e d as made by the purchasing corporation. "(i) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to e n s u r e that the purposes of this section to require consistency of t r e a t m e n t of stock and asset purchases with respect to a t a r g e t corporation and its t a r g e t affiliates (whether by t r e a t i n g all of the m as stock purchases or as asset purchases) may not be circumvented through the use of any provision of law or regulations (including the consolidated r e t u r n regulations)." 26 USC 334.
(b) R E P E A L OF SECTION 334(b)(2).—Subsection (b) of section
334
(relating to limitation of subsidiary) is amended to read as follows: "(b) LIQUIDATION OF SUBSIDIARY.— "(1) DISTRIBUTION I N COMPLETE LIQUIDATION.—If property
is
received by a corporation in a distribution in a complete liquidation to which section 332(a) applies, the basis of the property in the h and s of the distributee shall be the same as it would be in the h and s of the transferor. "(2) TRANSFERS TO WHICH SECTION 3 3 2 (C) APPLIES.—If property
is received by a corporation in a transfer to which section 332(c) applies, the basis of the property in the h and s of the transferee shall be the s a m e a s it would be in the h and s of the transferor.
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