
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
