[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR502.7]

[Page 12-13]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 502--GREECE--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 502.7  Release of excess tax withheld at source.

    (a) General. (1) In order to give the convention effective 
application at the earliest practicable date, the exemptions from 
withholding of United States tax at source granted by this part are 
hereby made effective beginning January 1, 1954, contingent upon 
compliance with the applicable provisions of Secs. 502.2 through 502.6.
    (2) In the case of dividends and interest paid by a Greek 
corporation to a recipient other than a citizen, resident, or 
corporation of the United States, if United States tax at the stautory 
rate has been withheld on or after January 1, 1954, there shall be 
released by the withholding agent and paid over to the person from whom 
it was withheld, an amount equal to the tax so withheld from such items.
    (3) In the case of every taxpayer whose address at the time of 
payment was in Greece and who furnishes to the withholding agent the 
letter of notification prescribed in Secs. 502.3(c), 502.5(b), and 
502.6(b) as authorization for the release of excess tax withheld, if 
United States tax at the statutory rate (30 percent as of the date of 
approval of this part) has been withheld on or after January 1, 1954, 
from interest (other than coupon bond interest), copyright royalties and 
other items to which Sec. 502.5(a) is applicable, and from private 
pensions and life annuities as defined in Article XI, there shall be 
released (except as provided in paragraph (b) of this section) by the 
withholding agent and paid over to the person from whom it was withheld 
an amount equal to the tax so withheld from such items.
    (4) In the case of every taxpayer whose address at the time of 
payment was in Greece and who furnishes to the withholding agent Form 
1001-G clearly marked ``Substitute'' and executed in accordance with 
Sec. 502.3(c), if United States tax at the statutory rate has been 
withheld from coupon bond interest on or after January 1, 1954, there 
shall be released (except as provided in paragraph (b) of this section) 
by the withholding agent and paid over to the person from whom it was 
withheld an amount equal to the tax so withheld from such interest. One 
such substitute form shall be filed in duplicate with respect to each 
issue of bonds and will serve with respect to that issue to replace all 
Forms 1001 previously filed by the taxpayer in the calendar year in 
which the excess tax was withheld and with respect to which such excess 
is released.
    (5) The original and duplicate of substitute Form 1001-G shall be 
forwarded by the withholding agent to the District Director of Internal 
Revenue, Audit Division, Alien Returns Section, Baltimore 2, Maryland, 
with the quarterly return on Form 1012. Substitute Form 1001-G need not 
be listed on Form 1012.
    (6) The provisions of this section (other than paragraph (c) of this 
section) shall have no application to excess tax withheld at source 
which has been paid by the witholding agent to the district director of 
internal revenue.
    (b) Interest paid where degree of stock ownership is determined. If 
United States tax at the rate of 28 percent or 30 percent, as the case 
may be, has been withheld on or after January 1, 1954, from interest 
paid by a domestic corporation to a Greek corporation whose address at 
the time of payment was in Greece, and if the relationship existing 
between the Greek corporation and the domestic corporation, was, at the 
time the interest was paid, such as to render uncertain whether, by 
reason of the exception contained in Article VI (1) of the convention, 
such interest was exempt from United States tax, the withholding agent 
shall release and pay over to the Greek corporation an amount equal to 
the tax so withheld only if the Greek corporation (1) furnishes to the 
domestic corporation a copy of the Commissioner's authorization of 
release prescribed in Sec. 502.3 (d) and (2) files the letter of 
notification prescribed in Sec. 502.3(c), or the substitute Form 1001-G 
prescribed in paragraph (a) of this section, whichever is applicable.

[[Page 13]]

    (c) Amounts withheld during 1953. For provisions respecting the 
refund of excess tax withheld during the calendar year 1953, see 
Sec. 502.10.