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TITLE 26-INTERNAL REVENUE CODE cording to rules substantially similar to those applicable to domestic corporations, under reg- ulations prescribed by the Secretary. In deter- mining such earnings and profits, or the deficit in such earnings and profits, the amount of any illegal bribe, kickback, or other payment (within the meaning of section 162(c)) shall not be taken into account to decrease such earnings and profits or to increase such deficit. (b) Blocked foreign income Under regulations prescribed by the Secre- tary, no part of the earnings and profits of a controlled foreign corporation for any taxable year shall be included in earnings and profits for purposes of sections 952, 955, and 956, if it is established to the satisfaction of the Secretary that such part could not have been distributed by the controlled foreign corporation to United States shareholders who own (within the mean- ing of section 958(a)) stock of such controlled foreign corporation because of currency or other restrictions or limitations imposed under the laws of any foreign country. (c) Records and accounts of United States sharehold- erg (1) Records and accounts to be maintained The Secretary may by regulations require each person who is, or has been, a United States shareholder of a controlled foreign corporation to maintain such records and ac- counts as may be prescribed by such regula- tions as necessary to carry out the provisions of this subpart and subpart 0. (2) Two or more persons required to maintain or furnish the same records and accounts with re- spect to the same foreign corporation Where, but for this paragraph, two or more United States persons would be required to maintain or furnish the same records and ac- counts as may by regulations be required under paragraph (1) with respect to the same controlled foreign corporation for the same period, the Secretary may by regulations pro- vide that the maintenance or furnishing of such records and accounts by only one such person shall satisfy the requirements of para- graph (1) for such other persons. (Added Pub. L. 87-834, § 12(a), Oct. 16, 1962, 76 Stat. 1027, and amended Pub. L. 91-172, title IV, § 442(b)(1), Dec. 30, 1969, 83 Stat. 628; Pub. L. 94-455, title X, § 1065(b), title XIX, §§ 1901(b)(32)(B)(iii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1654, 1800, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, §§ 1065(b), 1901(b)(32)(B)(ii), 1906(b)(13)(A), struck out "or his delegate" following "Secretary" added "In determin- ing such earnings and profits, the amount of any il- legal bribe, kickback, or other payment (within the meaning of section 162(c)) shall not be taken into ac- count to decrease such earnings and profits or to in- crease such deficit" following "Secretary" and substi- tuted "312(k)(3)" for "312(m)(3)" following "provided in section". Subsecs. (b), (c)(1), (2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary" whenever appearing. 1969-Subsec. (a). Pub. L. 91-172 added reference to the exception provided for in section 312(m)(3). EmcTIvE DATE OF 1976 AMENDMENT Amendment of subsec. (a) by section 1065(b) of Pub. L. 94-455 applicable to payments described in section 162(c) of this title made more than 30 days after Oct. 4. 1976, see section 1066(b) of Pub. L. 94-455, set (ut as an Effective Date of 1976 Amendment note under sec- tion 952 of this title. SUBPART G-EXPORT TRADE CORPORATIONS Sec. 970. Reduction of su opart F income of export trade corporations. 971. Definitions. [972. Repealed.] ,%MENDMENTS 1976-Pub. L. 94-4t,5, title XIX, § 1901(b)(27)(B), Oct. 4, 1976, 90 Stat. 1799, struck out item 972. 1962-Pub. L. 87-834, § 12(a), Oct. 16, 1962, 76 Stat. 1027, added the heading of subpart G, and items 970 to 972. SUBPART REFERRED TO IN OTHER SECTIONS This subpart is referred to in section 964 of this title. § 970. Reduction of subpart F income of export trade corporations (a) Export trade income constituting foreign base company income (I) In general In the case of a controlled foreign corpora- tion (as defined in section 957) which for the taxable year is an export trade corporation, the subpart F income (determined without regard to this subpart) of such corporation for such year shall be reduced by an amount equal to so much of the export trade income (as defined in section 971(b)) of such corpora- tion for such year as constitutes foreign base company income (as defined in section 954), but only to the extent that such amount does not exceed whichever of the following amounts is the lesser: (A) an amount equal to IV2 times so much of the export promotion expenses (as de- fined in section 971(d)) of such corporation for such year as is probably allocable to the export trade income which constitutes for- eign base company income of such corpora- tion for such year, or (B) an amount equal to 10 percent of so much of the gross receipts for such year (or, in the case of gross receipts arising from commissions, fees, or other compensation for its services, so much of the gross amount upon the basis of which such com- missions, fees, or other compensation is computed) accruing to such export trade corporation from the sale, installation, op- eration, maintenance, or use of property in respect of which such corporation derives export trade income as is properly allocable to the export trade income which consti- tutes foreign base company income of such corporation for such year. The allocations with respect to export trade income which constitutes foreign base compa- ny income under subparagraphs (A) and (B) shall be made under regulations prescribed by the Secretary. Page 615 § 970