Rev. Rul. 67-308

The Service recognizes the need for amplification and clarification of the administrative requirements relating to the evidence which is acceptable for the purpose of establishing whether a tax imposed by a particular statute of a foreign country or possession of the United States comes within the United States concept of an income, war profits, or excess profits tax, and whether the similar credit requirements of section 901 of the Internal Revenue Code of 1954 have been met.

Section 901 of the Code provides, in effect, that in order for a tax to be creditable under that section it must be an income, war profits or excess profits tax. Section 903 of the Code provides that the term `income, war profits, and excess profits taxes' includes a tax paid in lieu of a tax on income, war profits, or excess profits otherwise generally imposed by any foreign country or by any possession of the United States.

Section 901(b)(3) of the Code further provides that the foreign tax credit is allowable in the case of an alien resident of the United States, and in the case of an alien individual who is a bona fide resident of Puerto Rico during the entire taxable year. However, section 901(c) of the Code provides that the President, upon making certain findings, can proclaim that the credit under section 901(b)(3) of the Code shall be allowed to citizens or subjects of such foreign country only if such foreign country, in imposing income, war profits, and excess profits taxes, allows to citizens of the United States residing in such foreign country such a similar credit.

In its determination of whether the above requirements have been met it is necessary for the Service to examine all pertinent provisions of the foreign law or laws involved.

Section 905 of the Code provides, in part, that the credit provided in section 901 of the Code shall be allowed only if the taxpayer establishes to the satisfaction of the Secretary or his delegate all information necessary for the verification of such credit.

In general, the Service will accept a document submitted for its consideration if the document is accurate and complete and serves the purpose for which it is submitted. The following standards will be used by the Service in its determination of the acceptability of documents submitted to satisfy the requirement of section 901 and 903 of the Code.

In Cases Where English Is The Official Language Of The Foreign Country Involved -In such cases the document submitted must be in the English language and must be either (1) an official publication of the foreign government involved, or of its designated official printer, which contains, verbatim, the pertinent provisions of the foreign law as enacted; (2) a copy or reproduction of such official publication, or pertinent excerpts therefrom, properly attested to as explained below; (3) an accurate and complete reprint of the law as enacted, or pertinent excerpts therefrom, properly attested to; (4) a copy or reproduction of such reprint, or pertinent excerpts therefrom, properly attested to with respect to the copy or reproduction; (5) verbatim excerpts of the pertinent provisions of the foreign law as enacted, properly attested to by an official of the department or office of the foreign government which administers the law; (6) verbatim excerpts of the pertinent provisions of the foreign law as enacted, properly attested to by an accredited diplomatic representative of the foreign country involved; or (7) such other official documents, properly attested to, originating in the foreign country involved and containing matter which, in the opinion of the Service, is of sufficient scope and quality to enable it to make the determinations here in question.

Attestations referred to above must (a) establish that the material offered is an exact copy of the material as it appears in the document from which it was obtained; (b) contain a statement as to the period covered by the law presented; (c) contain the name and address of the person attesting; (d) contain the official title, if any, of the person attesting and a statement as to his qualifications and knowledge regarding income tax matters; and (e) contain a statement as to whether or not the attestant has been admitted to practice before the Treasury Department of the United States Government.

In addition, the taxpayer or his representative must represent that, to the best of his knowledge, the document submitted is accurate and complete with respect to the pertinent provisions of the relevant foreign law or laws and that he knows of no judicial interpretation of the statutory provisions adverse to his claim that the tax is creditable.

In Cases Where English Is Not The Official Language Of The Foreign Country Involved .-In such cases the document submitted must be in the official language of the country involved and must be of the same scope and quality as listed in (1) through (7) above in those cases where English is the official language of the foreign country involved. Attestation thereto, in the official language of the country involved, must contain the same information listed above in (a) through (e).

Translations -In cases where English is not the official language of the foreign country involved, an accurate translation, in the English language, of the document submitted and the attestation thereto is also required. Such translation must be that of a qualified translator and must be attested to by him. Such attestation must contain (1) a statement that the translation submitted is a true and accurate translation of the document submitted in the foreign language; (2) a statement as to the attestant's qualifications as a translator and as to his qualifications and knowledge regarding income tax matters; (3) the attestant's name and address; and (4) a statement as to whether or not the attestant has been admitted to practice before the Treasury Department of the United States Government.

In addition, the taxpayer or his representative must make the same representations regarding the accuracy and completeness of the material submitted as are required where English is the official language of the foreign country involved.

Revenue Ruling 57-153, C.B. 1957-1, 243, is superseded.