Rev. Rul. 65-181

Paragraphs (b) and (c) of section 147.7-5 of the temporary regulations under section 4920(b) of the Internal Revenue Code of 1954, as added by the Interest Equalization Tax Act, Public Law 88-563, C.B. 1964-2, 615, provide that a foreign underwriter electing to be treated as a United States person with respect to his participation in a public offering of stock or debt obligations must, in addition to filing the prescribed statement of election, pay the tax that would be imposed under section 4911 of the Code on his acquisition of stock or debt obligations in connection with such public offering.

Prepayment of the tax would not be required at the time the statement of election is filed if, at the time of such filing, there is in effect an Executive order issued pursuant to section 4917 of the Code which would exclude the underwriter's acquisition from tax upon compliance with the provisions of the order.

Section 4917 of the Code confers upon the President authority to exclude from the interest equalization tax original or new issues of foreign stock or debt obligations whenever he determines that such exclusion is necessary to preserve the stability of the international monetary system. Pursuant to this authority, the President has issued Executive Order No. 11175, dated September 3, 1964, C.B. 1964-2, 460, relating to original or new issues of stock or debt obligations of Canadian origin, and Executive Order No. 11211, dated April 2, 1965, C.B. 1965-1, 509, relating to certain debt obligations of Japanese origin.

¹ Based on Technical Information Release 732, dated June 9, 1965.