HR 485 IHCommentsClose CommentsPermalink

To strengthen existing legislation sanctioning persons aiding and facilitating nonproliferation activities by the Governments of Iran, North Korea, and Syria, and for other purposes.CommentsClose CommentsPermalink

January 13, 2009CommentsClose CommentsPermalink

Ms. ROS-LEHTINEN introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, the Judiciary, Oversight and Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To strengthen existing legislation sanctioning persons aiding and facilitating nonproliferation activities by the Governments of Iran, North Korea, and Syria, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Security through Termination Of Proliferation Act of 2009’ or the ‘STOP Act of 2009’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; Table of contents.CommentsClose CommentsPermalink

TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN, NORTH KOREA, AND SYRIA

Sec. 101. Codification of sanctions against Iran.CommentsClose CommentsPermalink





Sec. 102. Codification of sanctions against North Korea.CommentsClose CommentsPermalink





Sec. 103. Codification of sanctions against Syria.CommentsClose CommentsPermalink

TITLE II--AMENDMENTS TO THE IRAN, NORTH KOREA, AND SYRIA NONPROLIFERATION ACT

Sec. 201. Transshipment of certain goods, services, or technology.CommentsClose CommentsPermalink





Sec. 202. Restrictions on nuclear cooperation.CommentsClose CommentsPermalink





Sec. 203. Exclusion of senior officials.CommentsClose CommentsPermalink

TITLE III--AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 AND RELATED PROVISIONS

Sec. 301. Exclusion from the United States of senior officials of foreign persons who have aided proliferation relating to Iran.CommentsClose CommentsPermalink





Sec. 302. Denial of tax benefits for taxpayers engaged in business activity with Iran prohibited by United States law.CommentsClose CommentsPermalink





Sec. 303. Income tax of foreign corporations engaged in business activity with Iran prohibited by United States law.CommentsClose CommentsPermalink





Sec. 304. Compensation for Former United States Hostages in Iran Fund.CommentsClose CommentsPermalink

TITLE IV--DEFINITIONS

Sec. 401. Definitions.CommentsClose CommentsPermalink

TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN, NORTH KOREA, AND SYRIACommentsClose CommentsPermalink

SEC. 101. CODIFICATION OF SANCTIONS AGAINST IRAN.

United States sanctions, controls, and regulations with respect to Iran imposed pursuant to Executive Order No. 12957, sections 1(b) through (1)(g) and sections (2) through (6) of Executive Order No. 12959, and sections 2 and 3 of Executive Order No. 13059 (relating to exports and certain other transactions with Iran) as in effect on January 1, 2006, shall remain in effect until the President certifies to the appropriate congressional committees that the Government of Iran has verifiably dismantled its weapons of mass destruction programs.CommentsClose CommentsPermalink

SEC. 102. CODIFICATION OF SANCTIONS AGAINST NORTH KOREA.

United States sanctions, controls, and regulations with respect to North Korea imposed by reason of a determination of the Secretary of State that the Government of North Korea, for purposes of section 6(j) of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act), section 40 of the Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or other provision of law, is a government that has repeatedly provided support for acts of international terrorism, shall remain in effect and may not be lifted pursuant to such provisions of law until the President certifies to appropriate congressional committees that the Government of North Korea has verifiably dismantled its weapons of mass destruction programs.CommentsClose CommentsPermalink

SEC. 103. CODIFICATION OF SANCTIONS AGAINST SYRIA.

Restrictions against the Government of Syria, and on persons by reason of their direction of, or contribution to, activities of the Government of Syria, that were imposed pursuant to the International Emergency Economic Powers Act, the Syria Accountability and Lebanese Sovereignty Act of 2003, the Iran, North Korea, and Syria Nonproliferation Act, or any similar provision of law, as in effect on the date of the enactment of this Act, including the restrictions imposed under Executive Order 12938 (as amended by Executive Order 13094), Executive Order 13338, Executive Order 13399, Executive Order 13460, and any similar Executive Order, shall remain in effect and may not be lifted pursuant to such provisions of law until the President certifies to the appropriate congressional committees that the Government of Syria has verifiably dismantled its weapons of mass destruction programs.CommentsClose CommentsPermalink

TITLE II--AMENDMENTS TO THE IRAN, NORTH KOREA, AND SYRIA NONPROLIFERATION ACTCommentsClose CommentsPermalink

SEC. 201. TRANSSHIPMENT OF CERTAIN GOODS, SERVICES, OR TECHNOLOGY.

The Iran, North Korea, and Syria Nonproliferation Act (Public Law 106-178; 50 U.S.C. 1701 note) is amended--CommentsClose CommentsPermalink





(1) in section 2--CommentsClose CommentsPermalink





(A) in subsection (a), in the matter preceding paragraph (1)--CommentsClose CommentsPermalink





(i) by striking ‘or’ after ‘Syria’; andCommentsClose CommentsPermalink





(ii) by inserting after ‘North Korea’ the following: ‘, on or after January 1, 1999, permitted, hosted or otherwise facilitated a transshipment (as such term is defined in section 5) that may have enabled a foreign person to transfer (as such term is defined in section 7) to or acquire from Iran, on or after January 1, 2005, permitted, hosted or otherwise facilitated a transshipment that may have enabled a foreign person to transfer to or acquire from Syria, or on or after January 1, 2006, permitted, hosted or otherwise facilitated a transshipment that may have enabled a person to transfer to or acquire from North Korea’; andCommentsClose CommentsPermalink





(B) in subsection (e), by inserting ‘, or whose transfer via transshipment was permitted, hosted or facilitated,’ after ‘transferred’; andCommentsClose CommentsPermalink





(2) in section 5--CommentsClose CommentsPermalink





(A) in subsection (a)--CommentsClose CommentsPermalink





(i) in paragraph (1), by inserting ‘, or did not permit, host, or otherwise facilitate transshipment (as such term is defined in section 5) that may have enabled a foreign person to transfer to or acquire from,’ before ‘Iran’;CommentsClose CommentsPermalink





(ii) in paragraph (3), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(iii) in paragraph (4), by striking the period at the end and inserting ‘; or’; andCommentsClose CommentsPermalink





(iv) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) in the case of a foreign person who permitted, hosted or otherwise facilitated transshipment that may have enabled a foreign person to transfer to or acquire from, Iran, North Korea, or Syria, as the case may be, the goods, services, or technology the apparent transfer of which caused that person to be identified in a report submitted pursuant to section 2(a), the government with primary jurisdiction over the foreign person has made and continues to make clear, specific efforts to stop and deter the permitting, hosting, or other facilitating of transshipments that may enable such transfers or acquisitions.’; andCommentsClose CommentsPermalink





(B) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) GOODS, SERVICES, OR TECHNOLOGY- The term ‘goods, services, or technology’ includes--CommentsClose CommentsPermalink





‘(A) any defense articles or defense services on the United States Munitions List under section 38 of the Arms Export Control Act (22 U.S.C. 2778) for which special export controls are warranted under such Act (22 U.S.C. 2751 et seq.);CommentsClose CommentsPermalink





‘(B) any item identified on the Commerce Control List maintained under part 774 of title 15, Code of Federal Regulations; andCommentsClose CommentsPermalink





‘(C) other sensitive United States goods, including intellectual property and services that would contribute to the abilities of Iran, North Korea, and Syria to further their conventional and unconventional military capabilities.CommentsClose CommentsPermalink





‘(2) TRANSSHIPMENT- In this section, the term ‘transshipment’ means the export from one country to another that passes through a third country, in which cargo is off-loaded and there is some change to conveyance.’.CommentsClose CommentsPermalink

SEC. 202. RESTRICTIONS ON NUCLEAR COOPERATION.

The Iran, North Korea, and Syria Nonproliferation Act is further amended--CommentsClose CommentsPermalink





(1) by redesignating section 7 as section 9; andCommentsClose CommentsPermalink





(2) by inserting after section 6 the following new section:CommentsClose CommentsPermalink

‘SEC. 7. RESTRICTIONS ON NUCLEAR COOPERATION WITH COUNTRIES AIDING PROLIFERATION BY IRAN, NORTH KOREA, OR SYRIA.

‘(a) In General-CommentsClose CommentsPermalink





‘(1) RESTRICTIONS- Notwithstanding any other provision of law--CommentsClose CommentsPermalink





‘(A) no agreement for cooperation between the United States and the government of any country that is assisting the nuclear program of Iran, North Korea, or Syria, or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria may be submitted to the President or to Congress pursuant to section 123 of the Atomic Energy Act of 1954 (42 U.S.C. 2153);CommentsClose CommentsPermalink





‘(B) no such agreement may enter into force with such country;CommentsClose CommentsPermalink





‘(C) no license may be issued for export directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement; andCommentsClose CommentsPermalink





‘(D) no approval may be given for the transfer or retransfer directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement, until the President makes the determination and report under paragraph (2).CommentsClose CommentsPermalink





‘(2) DETERMINATION AND REPORT- The determination and report referred to in paragraph (1)(D) are a determination and report by the President, submitted to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate, that--CommentsClose CommentsPermalink





‘(A) Iran, North Korea, or Syria, as the case may, has ceased its efforts to design, develop, or acquire a nuclear explosive device or related materials or technology; orCommentsClose CommentsPermalink





‘(B) the government of the country that is assisting the nuclear programs of Iran, North Korea, or Syria, as the case may be, or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria, as the case may be--CommentsClose CommentsPermalink





‘(i) has suspended all nuclear assistance to Iran, North Korea, or Syria, as the case may be, and all transfers of advanced conventional weapons and missiles to Iran, North Korea, or Syria, as the case may be; andCommentsClose CommentsPermalink





‘(ii) is committed to maintaining that suspension until Iran, North Korea, or Syria, as the case may be, has implemented measures that would permit the President to make the determination described in subparagraph (A).CommentsClose CommentsPermalink





‘(b) Rules of Construction- The restrictions described in subsection (a)(1)--CommentsClose CommentsPermalink





‘(1) shall apply in addition to all other applicable procedures, requirements, and restrictions described in the Atomic Energy Act of 1954 and other applicable Acts; andCommentsClose CommentsPermalink





‘(2) shall not be construed as affecting the validity of an agreement for cooperation between the United States and the government of a country that is in effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





‘(c) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) AGREEMENT FOR COOPERATION- The term ‘agreement for cooperation’ has the meaning given that term in section 11 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2014 b.).CommentsClose CommentsPermalink





‘(2) ASSISTING THE NUCLEAR PROGRAM OF IRAN, NORTH KOREA, OR SYRIA- The term ‘assisting the nuclear program of Iran, North Korea, or Syria’ means the intentional transfer to Iran, North Korea, or Syria by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on the Nuclear Suppliers Group Guidelines for the Export of Nuclear Material, Equipment and Technology (published by the International Atomic Energy Agency as Information Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions), or the Nuclear Suppliers Group Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Material, and Related Technology (published by the International Atomic Energy Agency as Information Circular INFCIR/254/Rev. 3/Part 2, and subsequent revisions).CommentsClose CommentsPermalink





‘(3) COUNTRY THAT IS ASSISTING THE NUCLEAR PROGRAMS OF IRAN, NORTH KOREA, OR SYRIA OR TRANSFERRING ADVANCED CONVENTIONAL WEAPONS OR MISSILES TO IRAN, NORTH KOREA, OR SYRIA- The term ‘country that is assisting the nuclear program of Iran, North Korea, or Syria or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria’ means--CommentsClose CommentsPermalink





‘(A) the Russian Federation; andCommentsClose CommentsPermalink





‘(B) any other country determined by the President to be assisting the nuclear program of Iran, North Korea, or Syria or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria.CommentsClose CommentsPermalink





‘(4) TRANSFER- The term ‘transfer’ means the conveyance of technological or intellectual property, or the conversion of intellectual or technological advances into marketable goods, services, or articles of value, developed and generated in one place, to another through illegal or illicit means to a country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), and section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), is a government that has repeatedly provided support for acts of international terrorism.CommentsClose CommentsPermalink





‘(5) TRANSFERRING ADVANCED CONVENTIONAL WEAPONS OR MISSILES TO IRAN, NORTH KOREA, OR SYRIA- The term ‘transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria’ means the intentional transfer to Iran, North Korea, or Syria by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on--CommentsClose CommentsPermalink





‘(A) the Wassenaar Arrangement list of Dual Use Goods and Technologies and Munitions list of July 12, 1996, and subsequent revisions; orCommentsClose CommentsPermalink





‘(B) the Missile Technology Control Regime Equipment and Technology Annex of June 11, 1996, and subsequent revisions.CommentsClose CommentsPermalink





‘(d) Effective Date- The amendment made by subsection (a) shall apply to expenses paid or incurred on or after January 1, 2009.’.CommentsClose CommentsPermalink

SEC. 203. EXCLUSION OF SENIOR OFFICIALS.

The Iran, North Korea, and Syria Nonproliferation Act is further amended by inserting after section 7, as added by section 202 of this Act, the following new section:CommentsClose CommentsPermalink

‘SEC. 8. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN, NORTH KOREA, OR SYRIA.

‘(a) Grounds for Exclusion- Except as provided in subsection (b), the Secretary of State shall deny a visa to, and the Secretary of Homeland Security shall exclude from the United States, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act is a--CommentsClose CommentsPermalink





‘(1) corporate officer, principal, or shareholder with a controlling interest of a foreign person identified in a report submitted pursuant to section 2(a);CommentsClose CommentsPermalink





‘(2) corporate officer, principal, or shareholder with a controlling interest of a successor entity to, or a parent or subsidiary of, a foreign person identified in such a report;CommentsClose CommentsPermalink





‘(3) corporate officer, principal, or shareholder with a controlling interest of an affiliate of a foreign person identified in such a report, if such affiliate engaged in the activities referred to in such report, and if such affiliate is controlled in fact by the foreign person identified in such report;CommentsClose CommentsPermalink





‘(4) spouse, minor child, or agent of a person excludable under paragraph (1), (2), or (3);CommentsClose CommentsPermalink





‘(5) senior official of a foreign government identified in such a report;CommentsClose CommentsPermalink





‘(6) senior official of a foreign government with primary jurisdiction over a foreign person identified in such a report; orCommentsClose CommentsPermalink





‘(7) spouse, minor child, or agent of a person excludable under paragraph (5) or (6).CommentsClose CommentsPermalink





‘(b) Exception- The President may waive the sanctions described in subsection (a) with respect to a person specified in paragraph (5), (6), or (7) if the President determines and certifies in writing to the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate, on a case by case basis, that the foreign government with primary jurisdiction over such person has made and continues to make clear, specific efforts to stop and deter the transfer (as such term is defined in section 7) or retransfer of, or the permitting, hosting, or other facilitating of transshipments (as such term is defined in section 5) that may enable the transfer or retransfer of, goods or technology that contribute to the efforts by Iran, North Korea, or Syria, as the case may be, to acquire or develop advanced conventional weapons, or to acquire, develop, produce, or stockpile biological, chemical, radiological, or nuclear weapons or long-range ballistic missiles.CommentsClose CommentsPermalink





‘(c) Advanced Conventional Weapons Defined- In this section, the term ‘advanced conventional weapons’ means goods, services, or technology listed on--CommentsClose CommentsPermalink





‘(1) the Wassenaar Arrangement list of Dual Use Goods and Technologies and Munitions list of July 12, 1996, and subsequent revisions; orCommentsClose CommentsPermalink





‘(2) the Missile Technology Control Regime Equipment and Technology Annex of June 11, 1996, and subsequent revisions.’.CommentsClose CommentsPermalink

TITLE III--AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 AND RELATED PROVISIONSCommentsClose CommentsPermalink

SEC. 301. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN.

The Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended--CommentsClose CommentsPermalink





(1) in section 5(b), in the matter preceding paragraph (1), by inserting ‘, or permitted, hosted, or otherwise facilitated transshipment that may have enabled a person to export, transfer, or otherwise provide to Iran,’ after ‘or otherwise provided to Iran’;CommentsClose CommentsPermalink





(2) by redesignating sections (7) through (14) as sections (8) through (15), respectively; andCommentsClose CommentsPermalink





(3) by inserting after section (6) the following new section:CommentsClose CommentsPermalink

‘SEC. 7. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN.

‘(a) Grounds for Exclusion- Except as provided in subsection (b), the Secretary of State shall deny a visa to, and the Secretary of State shall exclude from the United States, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act is a--CommentsClose CommentsPermalink





‘(1) corporate officer, principal, or shareholder with a controlling interest of a person against whom sanctions have been imposed pursuant to section 5;CommentsClose CommentsPermalink





‘(2) corporate officer, principal, or shareholder with a controlling interest of a successor entity to or a parent or subsidiary of such a person;CommentsClose CommentsPermalink





‘(3) corporate officer, principal, or shareholder with a controlling interest of an affiliate of such a sanctioned person, if such affiliate engaged in a sanctionable activity described in subsection (a) or (b) of section 5, and if such affiliate is controlled in fact by such a person;CommentsClose CommentsPermalink





‘(4) spouse, minor child, or agent of a person excludable under paragraph (1), (2), or (3);CommentsClose CommentsPermalink





‘(5) senior official of a foreign government that is identified as a person against whom sanctions have been imposed pursuant to section 5;CommentsClose CommentsPermalink





‘(6) senior official of a foreign government with primary jurisdiction over such a person; orCommentsClose CommentsPermalink





‘(7) spouse, minor child, or agent of a person excludable under paragraph (5) or (6).CommentsClose CommentsPermalink





‘(b) Exception- The President may waive the sanctions described in subsection (a) with respect to a person specified in paragraph (5), (6), or (7) if the President determines and certifies in writing to the appropriate congressional committees, on a case by case basis, that the foreign government with primary jurisdiction over such a person against whom sanctions have been imposed pursuant to section 5 has made and continues to make clear, specific efforts to stop and deter a sanctionable activity described in subsection (a) or (b) of section 5.’; andCommentsClose CommentsPermalink





(4) in section 15, as redesignated pursuant to paragraph (2) of this section--CommentsClose CommentsPermalink





(A) by redesignating paragraphs (15) and (16) as paragraphs (17) and (18), respectively; andCommentsClose CommentsPermalink





(B) by inserting after paragraph (14) the following new paragraphs:CommentsClose CommentsPermalink





‘(15) TRANSFER- The term ‘transfer’ means the conveyance of technological or intellectual property, or the conversion of intellectual or technological advances into marketable goods, services, or articles of value, developed and generated in one place, to another through illegal or illicit means to a country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), and section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), is a government that has repeatedly provided support for acts of international terrorism.CommentsClose CommentsPermalink





‘(16) TRANSSHIPMENT- The term ‘transshipment’ means the export from one country to another that passes through a third country, in which cargo is off-loaded and there is some change to conveyance.’.CommentsClose CommentsPermalink

SEC. 302. DENIAL OF TAX BENEFITS FOR TAXPAYERS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.

(a) In General- Section 901 of the Internal Revenue Code of 1986 (relating to taxes of foreign countries and of possessions of United States) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:CommentsClose CommentsPermalink





‘(m) Taxpayers Engaged in Business Activity With Iran Prohibited by United States Law-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding any other provision of this part, in the case of a taxpayer which is a member of an expanded affiliated group any member of which, on any day during the taxable year, engaged in business activity with Iran which is prohibited by United States law, no credit shall be allowed under subsection (a) to the taxpayer for any income, war profits, or excess profits taxes paid or accrued (or deemed paid under section 902 or 960) to any country if such taxes are with respect to income attributable to a period any part of which occurs during such taxable year.CommentsClose CommentsPermalink





‘(2) BUSINESS ACTIVITY- For purposes of paragraph (1)--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘business activity’ means any of the following:CommentsClose CommentsPermalink





‘(i) An entity described in subparagraph (D) that--CommentsClose CommentsPermalink





‘(I) has in effect a contract that includes the responsibility for the development of petroleum resources, petroleum refining capacity, or liquefied natural gas located in Iran or (as the case may be), orCommentsClose CommentsPermalink





‘(II) has in effect a contract providing for the general supervision and guarantee of another person’s performance of a contract described in subclause (I).CommentsClose CommentsPermalink





‘(ii) The purchase of a share of ownership, including an equity interest, in the development described in clause (i).CommentsClose CommentsPermalink





‘(iii) Having in effect a contract providing for the participation in royalties, earnings, or profits in the development described in clause (i), without regard to the form of the participation.CommentsClose CommentsPermalink





‘(B) GOODS, SERVICES, AND TECHNOLOGY- The term ‘business activity’ includes the entry into, performance, or financing of a contract to sell or purchase goods, services, or technology.CommentsClose CommentsPermalink





‘(C) SPECIAL RULE- For purposes of this paragraph, an amendment or other modification that is made, on or the date of the enactment of this subsection to an agreement or contract shall be treated as the entry of an agreement or contract.CommentsClose CommentsPermalink





‘(D) ENTITIES DESCRIBED- For purposes of subparagraph (A), an entity described in this subparagraph is--CommentsClose CommentsPermalink





‘(i) a natural person,CommentsClose CommentsPermalink





‘(ii) a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization,CommentsClose CommentsPermalink





‘(iii) any foreign subsidiary of any entity described in clause (ii),CommentsClose CommentsPermalink





‘(iv) any governmental entity operating as a business enterprise, such as an export credit agency, andCommentsClose CommentsPermalink





‘(v) any successor to any entity described in clause (ii), (iii), or (iv).CommentsClose CommentsPermalink





‘(3) TAXES ALLOWED AS A DEDUCTION, ETC- Sections 275 and 78 shall not apply to any tax which is not allowable as a credit under subsection (a) by reason of this subsection.CommentsClose CommentsPermalink





‘(4) EXPANDED AFFILIATED GROUP- For purposes of paragraph (1), the term ‘expanded affiliated group’ means an affiliated group (as defined in subsection (a) of section 1504 (without regard to subsections (b)(2), (b)(4), and (c) thereof)); except that section 1504(a) shall be applied by substituting ‘more than 50 percent’ for ‘at least 80 percent’ each place it appears.CommentsClose CommentsPermalink





‘(5) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection, including regulations which impose appropriate reporting requirements.’.CommentsClose CommentsPermalink





(b) Income Included as Subpart F Income- Subsection (a) of section 952 is amended by striking ‘and’ at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ‘, and’, and by inserting after paragraph (5) the following new paragraph:CommentsClose CommentsPermalink





‘(6) all income of such corporation derived from all foreign countries during any period during which section 901(m) applies to such corporation.’.CommentsClose CommentsPermalink





(c) Reporting-CommentsClose CommentsPermalink





(1) IN GENERAL- Part II of subchapter B of chapter 68 of the Internal Revenue Code of 1986 (relating to failure to comply with certain information reporting requirements) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 6726. FAILURE TO REPORT INFORMATION UNDER SECTION 901(m).

‘(a) In General- In the case of each failure described in subsection (c) by any person, such person shall pay a penalty of $100,000 for each day in the noncompliance period with respect to which the failure relates.CommentsClose CommentsPermalink





‘(b) Noncompliance Period- For purposes of this section, the term ‘noncompliance period’ means, with respect to any failure, the period--CommentsClose CommentsPermalink





‘(1) beginning on the date such failure first occurs; andCommentsClose CommentsPermalink





‘(2) ending on the date such failure is corrected.CommentsClose CommentsPermalink





‘(c) Failures Subject to Penalty- For purposes of subsection (a), the failure described in this subsection is a failure to comply with any requirement contained in the regulations prescribed under section 901(m).’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections for part II of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 6726. Failure to report information under section 901(m).’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 303. INCOME TAX OF FOREIGN CORPORATIONS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.

(a) In General- Subpart B of part II of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign corporations) is amended by inserting after section 884 the following new section:CommentsClose CommentsPermalink

‘SEC. 884A. INCOME TAX OF FOREIGN CORPORATIONS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.

‘In the case of a foreign corporation which is engaged in business activity with Iran prohibited by United States law--CommentsClose CommentsPermalink





‘(1) in respect of tax on income--CommentsClose CommentsPermalink





‘(A) section 881(a) shall be applied by substituting ‘45 percent’ for ‘30 percent’;CommentsClose CommentsPermalink





‘(B) subsections (b), (c), (d), and (e) of section 881 shall not apply;CommentsClose CommentsPermalink





‘(C) tax imposed pursuant to section 882 shall be imposed at a rate of 45 percent;CommentsClose CommentsPermalink





‘(D) section 883 shall not apply; andCommentsClose CommentsPermalink





‘(E) section 884(a) shall be applied by substituting ‘45 percent’ for ‘30 percent’; andCommentsClose CommentsPermalink





‘(2) in respect of withholding--CommentsClose CommentsPermalink





‘(A) section 1442(a) shall be applied by substituting ‘45 percent’ for ‘30 percent’; andCommentsClose CommentsPermalink





‘(B) section 1442(c) shall not apply.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for subpart B of part II of subchapter N of chapter 1 of such Code is amended by inserting after the item relating to section 884 the following new item:CommentsClose CommentsPermalink





‘Sec. 884A. Income tax of foreign corporations engaged in business activity with Iran prohibited by United States law.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 304. COMPENSATION FOR FORMER UNITED STATES HOSTAGES IN IRAN FUND.

(a) Creation of Fund- There is established a fund to be known as the ‘Compensation for Former United States Hostages in Iran Fund’ (in this section referred to as the ‘Fund’), consisting of such amounts as may be appropriated to the Fund as provided by this section.CommentsClose CommentsPermalink





(b) Transfers to Fund- There are hereby appropriated to the Fund amounts equivalent to the taxes received in the Treasury by reason of the amendments made by sections 302 and 303 of this Act.CommentsClose CommentsPermalink





(c) Expenditures From Fund- Amounts in the Fund shall be available, as provided by appropriation Acts, for making expenditures to pay claims to the United States citizens held hostage in Iran, and to members of the families of such United States citizens, who are identified as plaintiffs or class members in Case Number 1:00CV03110 (EGS) or Case Number 1:00CV00716 (HHK) in the United States District Court for the District of Columbia.CommentsClose CommentsPermalink

TITLE IV--DEFINITIONSCommentsClose CommentsPermalink

SEC. 401. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term ‘appropriate congressional committees’ means--CommentsClose CommentsPermalink





(A) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; andCommentsClose CommentsPermalink





(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.CommentsClose CommentsPermalink





(2) GOVERNMENT OF SYRIA- The term ‘Government of Syria’ includes any agency or instrumentality of the Government of Syria, including any entity that is controlled by the Government of Syria.CommentsClose CommentsPermalink





(3) GOVERNMENT OF IRAN- The term ‘Government of Iran’ includes any agency or instrumentality of the Government of Iran, including any entity that is controlled by the Government of Iran.CommentsClose CommentsPermalink





(4) GOVERNMENT OF NORTH KOREA- The term ‘Government of North Korea’ includes any agency or instrumentality of the Government of North Korea, including any entity that is controlled by the Government of North Korea.CommentsClose CommentsPermalink





(5) WEAPONS OF MASS DESTRUCTION PROGRAMS- The term ‘weapons of mass destruction programs’ means--CommentsClose CommentsPermalink





(A) and chemical weapons, biological weapons, radiological or nuclear procurement and development programs and efforts;CommentsClose CommentsPermalink





(B) ballistic missile procurement and development programs and efforts; andCommentsClose CommentsPermalink





(C) other actions in violation of the Waasenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Missile Technology Control Regime, the Australia Group, the Nuclear Suppliers’ Group, the Zangger Committee, and any other international agreement or arrangement to which the United States is a party that restricts the export of chemical, biological, nuclear, and other weapons and their delivery systems, and effectively restricts the export of dual use components of such weapons and their delivery systems.CommentsClose CommentsPermalink