§ 1631k. — Taxes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC1631k]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 21--SETTLEMENT OF INTERNATIONAL CLAIMS
SUBCHAPTER II--VESTING AND LIQUIDATION OF BULGARIAN, HUNGARIAN, AND
RUMANIAN PROPERTY
Sec. 1631k. Taxes
(a) Liability
The vesting in any officer or agency designated by the President
under this subchapter of any property or the receipt by such designee of
any earnings, increment, or proceeds thereof shall not render
inapplicable any Federal, State, Territorial, or local tax for any
period before or after such vesting.
(b) Payment by designee; liability of former owner; enforcement of tax
liability; transfer of property
The officer or agency designated by the President under this
subchapter shall, notwithstanding the filing of any claim or the
institution of any suit under this subchapter, pay any tax incident to
any such property, or the earnings, increment, or proceeds thereof, at
the earliest time appearing to him to be not contrary to the interest of
the United States. The former owner shall not be liable for any such tax
accruing while such property, earnings, increment, or proceeds are held
by such designee, unless they are returned pursuant to this subchapter
without payment of such tax by the designee. Every such tax shall be
paid by the designee to the same extent, as nearly as may be deemed
practicable, as though the property had not been vested, and shall be
paid only out of the property, or earnings, increment, or proceeds
thereof, to which they are incident or out of other property acquired
from the same former owner, or earnings, increment, or proceeds thereof.
No tax liability may be enforced from any property or the earnings,
increment, or proceeds thereof while held by the designee except with
his consent. Where any property is transferred, otherwise than pursuant
to section 1631f(a) or 1631f(b) of this title, the designee may transfer
the property free and clear of any tax, except to the extent of any lien
for a tax existing and perfected at the date of vesting, and the
proceeds of such transfer shall, for tax purposes, replace the property
in the hands of the designee.
(c) Computation; suspension of limitations
Subject to the provisions of subsection (b) of this section, the
manner of computing any Federal taxes, including without limitation by
reason of this enumeration, the applicability in such computation of
credits, deductions, and exemptions to which the former owner is or
would be entitled, and the time and manner of any payment of such taxes
and the extent of any compliance by the designee with provisions of
Federal law and regulations applicable with respect to Federal taxes,
shall be in accordance with regulations prescribed by the Secretary of
the Treasury to effectuate this section. Statutes of limitations on
assessments, collection, refund, or credit of Federal taxes shall be
suspended with respect to any vested property or the earnings,
increment, or proceeds thereof, while vested and for six months
thereafter; but no interest shall be paid upon any refund with respect
to any period during which the statute of limitations is so suspended.
(d) ``Tax'' defined
The word ``tax'' as used in this section shall include, without
limitation by reason of this enumeration, any property, income, excess-
profits, war-profits, excise, estate, and employment tax, import duty,
and special assessment; and also any interest, penalty, additional
amount, or addition thereto not arising from any act, omission, neglect,
failure, or delay on the part of the designee.
(Mar. 10, 1950, ch. 54, title II, Sec. 212, as added Aug. 9, 1955, ch.
645, Sec. 3, 69 Stat. 569.)
Section Referred to in Other Sections
This section is referred to in section 1631g of this title.
