Chapter 78, Subchapter D, Section 7652, Subsection (b) · 26 U.S.C. Chapter 78 — DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE

Contents

(b)

(1)Except as provided in section 5314, there shall be imposed in the United States, upon articles coming into the United States from the Virgin Islands, a tax equal to the internal revenue tax imposed in the United States upon like articles of domestic manufacture.

(2)Such articles shipped from such islands to the United States shall be exempt from the payment of any tax imposed by the internal revenue laws of such islands.

(3)The Secretary shall determine the amount of all taxes imposed by, and collected under the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States. The amount so determined less 1 percent and less the estimated amount of refunds or credits shall be subject to disposition as follows:

(A)The payment of an estimated amount shall be made to the government of the Virgin Islands before the commencement of each fiscal year as set forth in section 4(c)(2) of the Act entitled “An Act to authorize appropriations for certain insular areas of the United States, and for other purposes”, approved August 18, 1978 (48 U.S.C. 1645), as in effect on the date of the enactment of the Trade and Development Act of 2000. The payment so made shall constitute a separate fund in the treasury of the Virgin Islands and may be expended as the legislature may determine.

(B)Any amounts remaining shall be deposited in the Treasury of the United States as miscellaneous receipts.

If at the end of any fiscal year the total of the Federal contribution made under subparagraph (A) with respect to the four calendar quarters immediately preceding the beginning of that fiscal year has not been obligated or expended for an approved purpose, the balance shall continue available for expenditure during any succeeding fiscal year, but only for emergency relief purposes and essential public projects. The aggregate amount of moneys available for expenditure for emergency relief purposes and essential public projects only shall not exceed the sum of $5,000,000 at the end of any fiscal year. Any unobligated or unexpended balance of the Federal contribution remaining at the end of a fiscal year which would cause the moneys available for emergency relief purposes and essential public projects only to exceed the sum of $5,000,000 shall thereupon be transferred and paid over to the Treasury of the United States as miscellaneous receipts.

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 22

Show every defined term

applicable 5-year period
means the 5-year period beginning on the date the notice taken into account for purposes of subsection (c)(1) was provided.
appropriate high-level Treasury official
means the Secretary of the Treasury or any delegate of the Secretary whose rank is no lower than that of a principal Internal Revenue officer for an internal revenue region.
church
includes—
church records
means all corporate and financial records regularly kept by a church, including corporate minute books and lists of members and contributors.
church tax examination
means any examination for purposes of making a determination described in paragraph (2) of—
church tax inquiry
means any inquiry to a church (other than an examination) to serve as a basis for determining whether a church—
closed
means the date on which the later of the following occurs;
computer software executable code
means—
computer software source code
means—
direct cost of processing operations
has the same meaning as when used in section 213 of the Caribbean Basin Economic Recovery Act.
employees
has the meaning given such term by section 2105 of title 5, United States Code.
examination notice date
means the date the notice with respect to a church tax examination is provided under subsection (b) to the church.
Federal excise tax subsidy
means any subsidy— the subsidy which Puerto Rico or the Virgin Islands offers generally to industries producing articles not subject to Federal excise taxes.
inquiry notice date
means the date the notice with respect to a church tax inquiry is provided under subsection (a).
proceeds
includes—
records
includes books, papers, and other data.
rum
means any article classified under subheading 2208.40.00 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
software
includes computer software source code and computer software executable code.
specified possession
means Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands.
tax-related computer software source code
means the computer source code for any computer software program intended for accounting, tax return preparation or compliance, or tax planning.
third-party recordkeeper
means— Subparagraph (J) shall apply only with respect to a summons requiring the production of the source code referred to in subparagraph (J) or the program and data described in section 7612(b)(1)(A)(ii) to which such source code relates.
undercover investigative operation
means any undercover investigative operation of the Service;