Rev. Rul. 70-24

Revenue Ruling 69-555, C.B. 1969-2, 237, contains a list of foreign corporations that have received rulings exempting certain classes of their stock from the interest equalization tax, pursuant to section 4920(b) of the Internal Revenue Code of 1954. This list shows that National Petroleum Corporation, Ltd., received such a ruling with respect to its capital stock par value $0.25.

Subsequent to the publication of that Revenue Ruling, it was determined that National Petroleum Corporation, Ltd. had issued additional shares of its capital stock, which, although identical in rights and interest to the exempt shares, did not qualify as part of the exempt class of stock under section 4920(b) of the Code, because the timely "notice of intent to issue" required by section 4920(b)(2)(D)(v) of the Code was not filed with respect to the issuance of such shares. Such additional shares were not marked with a legend to distinguish them from the exempt class of stock. Therefore, Revenue Ruling 69-555 is hereby modified by the delegation of "National Petroleum Corporation, Ltd.--capital stock, par value $0.25" from the listing. However, acquisitions of shares of such class of stock by United States persons after the date of publication of this Revenue Ruling will be exempt from interest equalization tax under section 4920(b) of the Code, if the acquiring person can establish that such shares were (or were derived from) shares which were issued under circumstances satisfying all of the requirements of such section.

Under the provisions of section 7805(b) of the Code, interest equalization tax will not be imposed upon United States persons with respect to shares of "National Petroleum Corporation Ltd.--capital stock, par value $0.25" acquired by them prior to the close of January 12, 1970, the date of publication of this Revenue Ruling in the Internal Revenue Bulletin. Furthermore, for purposes of acquisitions of that stock after such date, by other United States persons, any person who acquired such stock prior to the close of January 12, 1970, will be considered to have acquired such stock without liability for payment of such tax within the meaning of section 4918(a)(2)(B) of the Code.