96 STAT. 454
PUBLIC LAW 97-248—SEPT. 3, 1982 indirect costs incurred by such electing corporation which are attributable to such income. "(D) RELATED PERSON.—
"(i) IN GENERAL.—A person (hereinafter referred to as the 'related person') is related to any person if— "(I) the related person bears a relationship to such person specified in section 267(b) or section 707(b)(l), or "(II) the related person and such person are members of the same controlled group of corporations, "(ii) SPECIAL RULES.—For purposes of clause (i)— "(I) section 267(b) and section 707(b)(1) shall be applied by substituting '10 percent' for '50 percent', and "(II) section 267(b)(3) shall be applied without regard to whether a person was a personal holding company or a foreign personal holding company, "(E) CONTROLLED GROUP OF CORPORATIONS.—The term 'controlled group of corporations' has the meaning given to such term by section 1563(a), except that— "(i) 'more than 10 percent' shall be substituted for 'at least 80 percent' and 'more than 50 percent' each place either appears in section 1563(a), and "(ii) the determination shall be made without regard to subsections (a)(4), (b)(2), and (e)(3)(C) of section 1563.
26 USC 267.
"(4) DISTRIBUTIONS TO MEET QUALIFICATION REQUIREMENTS.—
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"(A) IN GENERAL.—If the Secretary determines that a corporation does not satisfy a condition specified in subparagraph (A) or (B) of subsection (a)(2) for any taxable year by reason of the exclusion from gross income under paragraph (1)(B), such corporation shall nevertheless be treated as satisfying such condition for such year if it makes a pro rata distribution of property after the close of such taxable year to its shareholders (designated at the time of such distribution as a distribution to meet qualification requirements) with respect to their stock in an amount which is equal to— "(i) if the condition of subsection (a)(2)(A) is not satisfied, that portion of the gross income for the period described in subsection (a)(2)(A)— "(I) which was not derived from sources within a possession, and "(II) which exceeds the amount of such income for such period which would enable such corporation to satisfy the condition of subsection (a)(2)(A), "(ii) if the condition of subsection (a)(2)(B) is not satisfied, that portion of the gross income for such period— "(I) which was not derived from the active conduct of a trade or business within a possession, and "(II) which exceeds the amount of such income for such period which would enable such corporation to satisfy the conditions of subsection (a)(2)(B), or "(iii) if neither of such conditions is satisfied, that portion of the gross income which exceeds the amount
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