[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.552-4]

[Page 287-288]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.552-4  Certain excluded banks.

    (a) A corporation is excluded from the definition of foreign 
personal holding company if it is organized and doing business under the 
banking and credit laws of a foreign country and if it establishes to 
the satisfaction of the Commissioner that it was not formed or availed 
of for the purpose of evading or avoiding United States income taxes 
which would otherwise be imposed on its shareholders. If this is 
established, the Commissioner, or such other official to whom authority 
may be delegated, will certify, by letter to the corporation, that it is 
not a foreign personal holding company.
    (b) An application for certification under section 552(b)(2) shall 
be made in writing to the Commissioner of Internal Revenue, Washington 
DC 20225, Attention: Director of International Operations. A separate 
application shall be filed for each taxable year for which certification 
is requested, and the application shall be accompanied by a completed 
Form 958 for the taxable year. See section 6035. The following 
information shall be set forth in, or submitted with, the application:
    (1) A complete reference to the banking or credit laws of the 
foreign country under which the corporation operates;
    (2) A statement as to the extent of the corporation's business in 
receiving deposits and making loans and discounts and similar banking 
and credit operations;
    (3) A statement as to the extent of the operations of the 
corporation other than such banking and credit operations;
    (4) A statement as to whether the banking and credit operations of 
the corporation are customary for it;
    (5) A statement setting forth the degree and manner of supervision 
exercised over it by the foreign government under its banking and credit 
laws; a copy (in English) of the corporation's last annual financial 
statement, as submitted to the Government authority having jurisdiction 
over it, shall be submitted with the application;

[[Page 288]]

    (6) A statement setting forth the business reasons of the 
corporation for not distributing the amount which would be its 
undistributed foreign personal holding company income if the corporation 
were not excluded under section 552(b);
    (7) A statement setting forth the extent of the corporation's 
profits which must be retained as reserves under the foreign law;
    (8) A statement setting forth the date or dates when the corporation 
reasonably expects to distribute is undistributed foreign personal 
holding company income for the taxable year;
    (9) A statement setting forth the name and address of each of the 
individuals described in section 552(a)(2), the extent of their stock 
ownership in the corporation, and the amount of distributions or other 
payments to such stockholders, including, but not limited to, dividends, 
compensation, interest, and rents; and
    (10) Any other facts or information the corporation may wish to 
submit to show that it was not formed or availed of for the purpose of 
evading or avoiding United States income taxes which would otherwise be 
imposed on its shareholders.

The corporation shall also furnish such other information requested as 
necessary by the Director of International Operations. The application 
for certification, together with the information required by this 
paragraph, should be filed within 60 days after the close of the taxable 
year of the corporation or before November 9, 1958, whichever is later. 
However, if the corporation is unable, for good cause, to submit the 
application for certification within such 60-day period, additional time 
may be granted by the Director of International Operations upon receipt 
of a request from the corporation setting forth the reasons for such 
request.