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107 STAT. 506 PUBLIC LAW 103-66—AUG. 10, 1993 establishes that the requirements of subclause (I) were satisfied, and ''(III) the taxpayer provides such documenta- tion to the Secretary within 30 days of request for such documentation. "(iii) Any portion of such net increase which is attributable to any transaction solely between foreign corporations unless, in the case of any such corpora- tions, the treatment of such transaction affects the determination of income from sources within the United States or taxable income effectively connected with the conduct of a trade or business within the United States." (c) COORDINATION WITH REASONABLE CAUSE EXCEPTION.—Para- 26 use 6662. graph (3) of section 6662(e) is am^ided by adding at the end thereof the following new subparagraph: "(D) COORDINATION WITH REASONABLE CAUSE EXCEP- TION.—^For purposes of section 6664(c) the taxpayer shall not be treated as having reasonable cause for any portion of an underpayment attributable to a net section 482 trans- fer price a4ju8tment unless such taxpayer meets the requirements of clause (i), (ii), or (iii) of subparagraph (B) with respect to such portion." (d) CONFORMING AMENDMENT.—Clause (iii) of section 6662(hX2XA) is amended to read as follows: "(iii) in paragraph (IXBXii)— "(I) '$20,000,000' for '$5,000,000', and "(II) *20 percent' for '10 percent'." 26 use 6662 (e) EFFECTIVE DATE.—^The amendments made by this section "°^^ shall apply to taxable years beginning after December 31, 1993. SEC. 13237. DENIAL OF PORTFOUO INTEREST EXEMPTION FOR CONTINGENT INTEREST. (a) GENERAL RULE.— (1) Subsection (h) of section 871 (relating to repeal of tax on interest of nonresident alien individuals received from cer- tain portfolio debt investments) is amended by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively, and by inserting after paragraph (3) the following new paragraph: '^(4) PORTFOLIO INTEREST NOT TO INCLUDE CERTAIN CONTIN- GENT INTEREST.—For purposes of this subsection— "(A) IN GENERAL.—^Except as otherwise provided in this paragraph, the term 'portfolio interest shall not incluae— "(i) any interest if the amount of such interest is determined by reference to— "(I) any receipts, sales or other cash flow of the debtor or a related person, "(II) any income or profits of the debtor or a related person, "(III) any change in value of any property of the debtor or a related person, or "(IV) any dividend, partnership distributions, or similar payments made by the debtor or a related person, or