- 25 -
deferral intercompany transactions rules, except to the
extent regulations provide otherwise. [H. Conf. Rept. 98-
861, at 1033 (1984), 1984-3 C.B. (Vol. 2) 1, 287.]
Petitioner argues that the indication in the conference
committee report that it “generally” follows the Senate bill
reflects a legislative intent to adopt the sense of the Senate
report language in question without expressly repeating it. We
are unpersuaded that this is so. It is clear that the conference
committee report “generally” follows the Senate bill by including
special rules for transfers between controlled group members,
unlike the House bill, which contained no such special rules. It
is also clear that the special rules actually adopted by the
conference committee (and enacted into law) differ significantly
from the Senate bill. Among these differences is the omission of
the Senate provision requiring that the deferred loss be restored
to the transferor. It seems clear that Congress, having
considered the issue, ultimately rejected any mandate that the
deferred loss be recognized by the transferor when it leaves the
controlled group. Instead, Congress specified that the deferral
lasts until the property is transferred outside the controlled
group, or until such other time as regulations may prescribe.
4. Relevance of Purchasing Member’s Tax Treatment Under
United Kingdom Tax Law.
In the final analysis, petitioner's argument that the
Temporary Regulation is invalid rests on the United Kingdom’s
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011