58
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PUBLIC LAW 88-272-FEB. 26, 1964
[78 STAT.
has been deteriuined by the Secretary or his delegate to constitute a (lualified trust under subsection (a) and to be exempt from taxation under section 501(a) for a period beginning after contributions were first made to or for such trust, if it is shown to the satisfaction of the Secretary or his delegate that— "(1) such trust was created pursuant to a collective bargaining agreement between employee representatives and two or more employers who are not related (determined under regulations prescribed by the Secretary or his delegate), "(2) any disbursements of contributions, made to or for such trust before the time as of which the Secretary or his delegate determined that the trust constitut-ed a qualified trust, substantially complied with the terms of the trust, and the plan of which the trust is a part, as subsequently qualified, and "(3) before the time as of which the Secretary or his delegate determined that the trust constitutes a qualified trust, the contributions to or for such trust were not used in a maimer which would jeopardize the interests of its beneficiaries, then such trust shall be considered as having constituted a qualified trust under subsection (a) and as having been exempt from taxation under section 501(a) for the period beginning on the date on which contributions were first made to or for such trust and ending on the date such trust first constituted (without regard to this subsection) a ([ualified trust under subsection (a). " (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply with respect to taxable years beginning after December 81, 1953, and ending after August 16, 1954, but onlj' with respect to contributions made after December 31, 1954. SEC. 220. QUALIFIED PENSION. ETC., PLAN COVERAGE FOR EMPLOYEES OF CERTAIN SUBSIDIARY EMPLOYERS. (a)
EMPLOYEES OF FOREIGN SUBSIDIARIES COVERED BY SOCIAL SECU-
26 USC 401-405. j^j^jry AGREEMENTS.—Part I of Subchapter D of chapter 1 (relating to pension, profit-sharing, stock bonus plans, etc.) is amended by adding at the end thereof the following new section: "SEC. 406. CERTAIN EMPLOYEES OF FOREIGN SUBSIDIARIES. "(a)
26 USC 40 f
26 USC 403! 26 u*sc 40^5' ?6 USC 3121!
TREATMENT
AS EMPLOYEES
OF DOMESTIC
CORPORATION.—
For purposes of applying this part with respect to a pension, profitsharing, or stock bonus plan described in section 401(a), an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a), of a domestic corporation, an individual who is a citizen of the United States and who is an employee of ^ foreign subsidiary (as defined in section 3121(1)(8)) of such domestic corporation shall be treated as an employee of such domestic corporation, if— "(1) such domestic corporation has entered into an agreement under section 3121(1) which applies to the foreign subsidiary of which such individual is an employee; "(2) the plan of such domestic corporation expressly providea for contributions or benefits for individuals who are citizens of the Ignited States and who are employees of its foreign subsidiaries to which an agreement entered into by such domestic corporation under section 3121(1) applies; and "(3) contributions under a funded plan of deferred compensation (whether or not a plan described in section 401(a), 4 0 3 (a), or 405(a)) are not provided by any other person with respect to the remuneration paid to such individual by the loreigii subsidiary.
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