PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2627
‘‘(2) any distribution by a real estate investment trust made after such date which is treated as a deduction under section 860 for a taxable year of such trust beginning on or before such date.’’. (q) AMENDMENTS RELATED TO SECTION 422 OF THE ACT.— (1) Subparagraph (B) of section 965(a)(2) is amended by inserting ‘‘from another controlled foreign corporation in such chain of ownership’’ before ‘‘, but only to the extent’’. (2) Subparagraph (A) of section 965(b)(2) is amended by inserting ‘‘cash’’ before ‘‘dividends’’. (3) Paragraph (3) of section 965(b) is amended by adding at the end the following: ‘‘The Secretary may prescribe such regulations as may be necessary or appropriate to prevent the avoidance of the purposes of this paragraph, including regulations which provide that cash dividends shall not be taken into account under subsection (a) to the extent such dividends are attributable to the direct or indirect transfer (including through the use of intervening entities or capital contributions) of cash or other property from a related person (as so defined) to a controlled foreign corporation.’’. (4) Paragraph (1) of section 965(c) is amended to read as follows: ‘‘(1) APPLICABLE FINANCIAL STATEMENT.—The term ‘applicable financial statement’ means— ‘‘(A) with respect to a United States shareholder which is required to file a financial statement with the Securities and Exchange Commission (or which is included in such a statement so filed by another person), the most recent audited annual financial statement (including the notes which form an integral part of such statement) of such shareholder (or which includes such shareholder)— ‘‘(i) which was so filed on or before June 30, 2003, and ‘‘(ii) which was certified on or before June 30, 2003, as being prepared in accordance with generally accepted accounting principles, and ‘‘(B) with respect to any other United States shareholder, the most recent audited financial statement (including the notes which form an integral part of such statement) of such shareholder (or which includes such shareholder)— ‘‘(i) which was certified on or before June 30, 2003, as being prepared in accordance with generally accepted accounting principles, and ‘‘(ii) which is used for the purposes of a statement or report— ‘‘(I) to creditors, ‘‘(II) to shareholders, or ‘‘(III) for any other substantial nontax purpose.’’. (5) Paragraph (2) of section 965(d) is amended by striking ‘‘properly allocated and apportioned’’ and inserting ‘‘directly allocable’’. (6) Subsection (d) of section 965 is amended by adding at the end the following new paragraph:
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