Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Proposed Rules 15091 

section, and the $960,000 payment to country 

X is not attributable to an arrangement 

described in paragraph (e)(5)(iv) of this 

section. 

Example 6. Active business; no SPV. (i) 

Facts. The facts are the same as in Example 

5, except that instead of loaning $50 million 

to D, C contributes the $50 million to E in 

exchange for 10 percent of the stock of E. E 

is a country Y entity that in not engaged in 

the active conduct of a trade or business. 

Also, for the 2015 tax year, D pays no 

dividends to C, E pays $3.2 million in 

dividends to C, and C makes a payment of 

$960,000 to country X with respect to C’s net 

income. 

(ii) Result. C’s dividend income 

attributable to its stock in E is passive 

investment income, and C’s stock in E is held 

to produce such income. C’s stock in D is not 

held to produce passive investment income 

because C owns at least 10 percent of D and 

D derives more than 50 percent of its income 

from the active conduct of its widget 

business. See paragraph (e)(5)(iv)(C)(4)(ii) of 

this section. As a result, less than 

substantially all of C’s assets are held to 

produce passive investment income. 

Accordingly, C does not meet the 

requirements of paragraph (e)(5)(iv)(B)(1) of 

this section, and the $960,000 payment to 

country X is not attributable to an 

arrangement described in paragraph (e)(5)(iv) 

of this section. 

Example 7. Asset holding transaction. (i) 

Facts. (A) A domestic corporation (USP) 

contributes $6 billion of country Z debt 

obligations to a country Z entity (DE) in 

exchange for all of the class A and class B 

stock of DE. A corporation unrelated to USP 

and organized in country Z (Fcorp) 

contributes $1.5 billion to DE in exchange for 

all of the class C stock of DE. DE uses the 

$1.5 billion contributed by Fcorp to redeem 

USP’s class B stock. The class C stock is 

entitled to ‘‘all’’ income from DE. However, 

Fcorp is obligated immediately to contribute 

back to DE all distributions on the class C 

stock. USP and Fcorp enter into—

(1) A forward contract under which USP 

agrees to buy after five years the class C stock 

for $1.5 billion; and 

(2) An agreement under which USP agrees 

to pay Fcorp interest at a below-market rate 

on $1.5 billion. 

(B) For U.S. tax purposes, these steps 

create a secured loan of $1.5 billion from 

Fcorp to USP. Therefore, for U.S. tax 

purposes, USP is the owner of both the class 

A and class C stock. DE is a disregarded 

entity for U.S. tax purposes and a corporation 

for country Z tax purposes. In year 1, DE 

earns $400 million of interest income on the 

country Z debt obligations. DE makes a 

payment to country Z of $100 million with 

respect to such income and distributes the 

remaining $300 million to Fcorp. Fcorp 

contributes the $300 million back to DE. USP 

and Fcorp are not related within the meaning 

of paragraph (e)(5)(iv)(C)(6) of this section. 

Country Z does not impose tax on interest 

income derived by U.S. residents. 

(C) Country Z treats Fcorp as the owner of 

the class C stock. Pursuant to country Z tax 

law, Fcorp is required to report the $400 

million of income with respect to the $300 

million distribution from DE, but is allowed 

to claim credits for DE’s $100 million 

payment to country Z. For country Z tax 

purposes, Fcorp’s contribution increases its 

basis in the class C stock. When the class C 

stock is later ‘‘sold’’ to USP for $1.5 billion, 

the increase in tax basis will result in a 

country Z tax loss for Fcorp. Each year, the 

amount of the basis increase (and, thus, the 

amount of the loss generated) will be 

approximately $300 million. 

(ii) Result. The payment to country Z is not 

a compulsory payment, and thus is not an 

amount of tax paid. First, DE is an SPV 

because all of DE’s income is passive 

investment income described in paragraph 

(e)(5)(iv)(C)(4) of this section, all of DE’s 

assets are held to produce such income, and 

the payment to country Z is attributable to 

such income. Second, if the payment were 

treated as an amount of tax paid, USP would 

be eligible to claim a credit for such amount 

under section 901(a). Third, USP would not 

pay any country Z tax if it directly owned 

DE’s assets. Fourth, Fcorp is entitled to claim 

a credit under country Z tax law for the 

payment and will recognize a loss under 

country Z law upon the ‘‘sale’’ of the class 

C stock. Fifth, Fcorp and USP are not related 

within the meaning of paragraph 

(e)(5)(iv)(C)(6) of this section and Fcorp is 

considered to own more than 10 percent of 

DE under country Z law. Sixth, the United 

States and country X view certain aspects of 

the transaction differently and the U.S. 

treatment would materially affect the amount 

of credits claimed by USP if the country Z 

payment were an amount of tax paid. USP’s 

ownership of the class C stock for U.S. tax 

purposes would make USP eligible to claim 

a credit for the country Z payment if the 

payment were treated as an amount of tax 

paid. 

* * * * * 

(h) Effective date. Paragraphs (a) 

through (e)(5)(ii) and paragraph (g) of 

this section, § 1.901–2A, and § 1.903–1 

apply to taxable years beginning after 

November 14, 1983. Paragraphs 

(e)(5)(iii) and (iv) of this section are 

effective for foreign taxes paid or 

accrued during taxable years of the 

taxpayer ending on or after the date on 

which these regulations are published 

as final regulations in the Federal 

Register. 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E7–5862 Filed 3–29–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Occupational Safety and Health 

Administration 

29 CFR Part 1910 

[Docket No. OSHA–2007–0021] 

RIN 1218–AC11 

Announcement of Additional 

Stakeholder Meetings on Occupational 

Exposure to Ionizing Radiation 

AGENCY: Occupational Safety and Health 

Administration, Labor. 

ACTION: Announcement of additional 

stakeholder meetings. 

SUMMARY: The Occupational Safety and 

Health Administration (OSHA) invites 

interested parties to participate in or 

observe informal stakeholder meetings 

on Occupational Exposure to Ionizing 

Radiation. These meetings are a 

continuation of OSHA’s information 

collection efforts on ionizing radiation. 

DATES: Stakeholder meetings: The 

stakeholder meeting dates are: 

1. 8:30 a.m.–1 p.m., April 19, 2007, 

Chicago, IL. 

2. 8:30 a.m.–4:30 p.m., April 26, 2007, 

Washington, DC. 

Notice of intention to attend a 

stakeholder meeting: You must submit a 

notice of intention to attend (i.e., to 

participate or observe) the Chicago, IL or 

Washington, DC, stakeholder meeting by 

April 11, 2007. 

ADDRESSES: Stakeholder meetings: The 

stakeholder meeting locations are: 

1. Crown Plaza Chicago O’Hare, 5440 

North River Road, Rosemont, IL 60018. 

2. Frances Perkins Building, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

Notices of intention to attend a 

stakeholder meeting: You may submit 

your notice of intention to attend (i.e., 

to participate or observe) a stakeholder 

meeting by any of the following 

methods: 

Electronic: OSHA encourages you to 

submit your notice of intention to attend 

to navas.liset@dol.gov. 

Facsimile: You may fax your notice of 

intention to attend to (202) 693–1678. 

Regular mail, express delivery, hand 

delivery, messenger and courier service: 

Submit your notice of intention to 

attend to Liset Navas, OSHA, 

Directorate of Standards and Guidance, 

Room N–3718, U.S. Department of 

Labor, 200 Constitution Avenue, NW., 

Washington, DC 20210; telephone (202) 

693–1950. The Department of Labor’s 

and OSHA’s normal hours of operation 

are 8:15 a.m. to 4:45 p.m., e.t. 

Instructions: For further information 

on the stakeholder meetings and 


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15092 Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Proposed Rules 

submitting notices of intention to attend 

(i.e., to participate or observe) one of the 

meetings, see the ‘‘Public Participation’’

heading in the SUPPLEMENTARY

INFORMATION section of this notice. 

Because of security-related 

procedures, the use of regular mail may 

cause a significant delay in the receipt 

of notices of intention to attend. For 

information about security procedures 

concerning the delivery of materials by 

hand, express mail, messenger or 

courier service, please contact Liset 

Navas at (202) 693–1950. 

Electronic copies of this Federal 

Register notice are available at http:// 

www.regulations.gov. This document, 

non-attributed notes from the 

stakeholder meetings, as well as news 

releases and other relevant information, 

will also be available at OSHA’s Web 

page at http://www.osha.gov. 

FOR FURTHER INFORMATION CONTACT: 

Michael Seymour, Director, OSHA, 

Office of Physical Hazards, Directorate 

of Standards and Guidance, Room N–

3718, U.S. Department of Labor, 200 

Constitution Avenue, NW., Washington, 

DC 20210; telephone (202) 693–1950. 

SUPPLEMENTARY INFORMATION: 

Background 

The use of ionizing radiation has 

increased significantly in recent years. 

Today, ionizing radiation is used in a 

wide variety of workplaces and 

operations, including security 

operations, hospitals and medical 

offices, dental offices, manufacturing 

worksites, research facilities, forestry 

and other agricultural worksites, and 

wastewater treatment plants. 

In 2005, OSHA initiated information 

collection efforts to obtain data, 

information, and comment on the 

increased workplace use of ionizing 

radiation and other related issues. These 

efforts started with the publication of a 

Request for Information (RFI) on May 3, 

2005 (70 FR 22828). OSHA received 51 

comments in response to the RFI. To 

supplement this information, OSHA is 

inviting interested parties to attend 

informal stakeholder meetings on the 

Occupational Exposure to Ionizing 

Radiation. OSHA will use the data and 

materials obtained through these 

information collections efforts to 

determine, in conjunction with other 

Federal agencies, whether regulatory 

action is necessary is protect employees 

from ionizing radiation exposure. 

OSHA’s existing standard on Ionizing 

Radiation (29 CFR 1910.1096) was 

adopted in 1971 pursuant to section 6(a) 

of the Occupational Safety and Health 

Act of 1970 (OSH Act) (29 U.S.C. 651, 

655). The standard has remained largely 

unchanged since that time. 

OSHA’s Ionizing Radiation standard 

applies to all workplaces except 

agricultural operations and those 

workplaces exempted from OSHA 

jurisdiction under section 4(b)(1) of the 

OSH Act (29 U.S.C. 653). Section 4(b)(1) 

states: 

Nothing in this Act shall apply to working 

conditions of employees with respect to 

which other Federal agencies, and State 

agencies acting under section 274 of the 

Atomic Energy Act of 1954, as amended (42 

U.S.C. 2021), exercise statutory authority to 

prescribe or enforce standards or regulations 

affecting occupational safety and health. 

The Nuclear Regulatory Commission 

(NRC) has statutory authority for 

licensing and regulating nuclear 

facilities and materials as mandated by 

the Atomic Energy Act of 1954 (as 

amended) (42 U.S.C. 2011 et seq.), the 

Energy Reorganization Act of 1974 (as 

amended), the Nuclear Nonproliferation 

Act of 1978, and other applicable 

statutes. Specifically, the NRC has the 

authority to regulate source, byproduct 

and certain special nuclear materials 

(e.g., nuclear reactor fuel). This 

authority covers radiation hazards in 

NRC-licensed nuclear facilities 

produced by radioactive materials and 

plant conditions that affect the safety of 

radioactive materials and thus present 

an increased radiation hazard to 

workers. 

In 1988, OSHA and NRC signed a 

memorandum of understanding (MOU) 

delineating the general areas of 

responsibility of each agency (CPL 2.86, 

December 22, 1989). The MOU specifies 

that at NRC-licensed facilities OSHA 

has authority to regulate occupational 

ionizing radiation sources not regulated 

by NRC (CPL 2.86). Examples of nonNRC regulated radiation sources include 

X-ray equipment, accelerators, electron 

microscopes, betatrons, and some 

naturally occurring radiation sources 

(CPL 2.86). (See the Ionizing Radiation 

RFI (70 FR 22828) for additional 

information on sources of ionizing 

radiation exposure, workplace uses of 

ionizing radiation, and health effects of 

ionizing radiation exposure.) 

Most recently, the Energy Policy Act 

of 2005 authorized NRC to regulate 

material made radioactive by 

accelerators by adding ‘‘acceleratorproduced material’’ to the definition of 

‘‘byproduct material’’ that NRC is 

authorized to license and regulate. The 

Energy Policy Act directed NRC to issue 

licensing and compliance oversight 

regulations to carry out the legislation. 

Until NRC issues and begins enforcing 

those regulations, OSHA retains 

authority over both accelerators and the 

materials they produce. 

Stakeholder Meetings 

OSHA intended to hold four 

stakeholder meetings on Occupational 

Exposure to Ionizing Radiation, the first 

two meetings covering the healing arts 

and industrial radiography, were 

announced on March 5, 2007 in the 

Federal Register (72 FR 9716). The 

healing arts stakeholder meeting was 

held in Washington, DC on March 16, 

2007 and the industrial radiography was 

scheduled to be held on March 26, 2007 

in Orlando, Florida but, was cancelled 

due to lack of participation. The Agency 

is announcing in this notice the third 

and fourth meetings. The third 

scheduled stakeholder meeting, to be 

held in Chicago, IL, will cover the nonmedical or security use of accelerators. 

The fourth scheduled stakeholder 

meeting, to be held in Washington, DC 

will cover the use of ionizing radiation 

in security activities. OSHA encourages 

interested parties to attend only the 

stakeholder meeting that deals with 

their industry, occupation, or operation. 

The stakeholder meetings will be an 

opportunity for informal discussion and 

the exchange of data, ideas, and points 

of view. To make the stakeholder 

meetings as productive as possible, 

OSHA requests that interested parties 

attending stakeholder meetings be 

prepared to discuss the following issues 

relating to occupational exposure to 

ionizing radiation in their respective 

industries, occupations, or operations: 

• Uses of ionizing radiation; 

• Available exposure data; 

• Controls utilized to minimize 

exposure; and 

• Training. 

In addition, OSHA will use the 

stakeholder meetings to discuss 

comments and materials received in 

response to the RFI. 

Each stakeholder meeting will begin 

with OSHA’s presentation on Agency 

responsibilities related to occupational 

exposure to ionizing radiation followed 

by stakeholder questions. OSHA will 

devote the remainder of each meeting to 

informal discussions on the topics 

above and related issues. In particular, 

OSHA is interested in hearing firsthand 

from employers and employees and in 

reviewing exposure data. Meeting 

participants are not expected to prepare 

and present formal testimony. 

Public Participation—Submission of 

Notices of Intention To Attend and 

Access To Docket 

You must submit a notice of intention 

to attend if you wish to participate in or 

observe a stakeholder meeting. You may 

submit notices of intention to attend one 

of the stakeholder meetings (1) 


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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Proposed Rules 15093 

electronically, (2) by facsimile, or (3) by 

hard copy. All notices must identify the 

Agency name and docket number for 

this notice (Docket No. OSHA–2007–

0021). Because of security-related 

procedures, the use of regular mail may 

cause a significant delay in the receipt 

of notices of intention to attend. For 

information about security procedures 

concerning the delivery of materials by 

hand, express mail, messenger or 

courier service, please contact Liset 

Navas at (202) 693–1950. 

Notices of intention to attend a 

stakeholder meeting must include the 

following information: 

• Name and contact information; 

• Affiliation (e.g., organization, 

association), if any; 

• The stakeholder meeting you plan 

to attend; 

• Whether you wish to be an active 

participant or observer; and 

• Whether you need any special 

accommodations in order to attend or 

participate in a stakeholder meeting. 

For access to comments and materials 

received in response to the RFI, go to 

OSHA Docket No. H–016 on OSHA’s 

Web page at http://www.osha.gov. 

Contact the OSHA Docket Office, Docket 

No. H–016, Room N–2625, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Washington, DC 20210; 

telephone (202) 693–2350 (OSHA’s TTY 

number is (877) 889–5627) for 

information about materials in the RFI 

docket that are not available through 

OSHA’s Web page and for assistance in 

using the Web page to locate docket 

submissions. 

Electronic copies of this Federal 

Register notice are available at http:// 

www.regulations.gov. This document, as 

well as news releases and other relevant 

information, also are available at 

OSHA’s Web page at http:// 

www.osha.gov. 

Authority 

This notice was prepared under the 

direction of Edwin G. Foulke, Jr., 

Assistant Secretary of Labor for 

Occupational Safety and Health. It is 

issued under Sections 4 and 8 of the 

Occupational Safety and Health Act of 

1970 (29 U.S.C. 653, 657), and Secretary 

of Labor’s Order No. 5–2002 (67 FR 

65008). 

Signed at Washington, DC on this 26th day 

of March, 2007. 

Edwin G. Foulke, Jr., 

Assistant Secretary of Labor for Occupational 

Safety and Health. 

[FR Doc. E7–5871 Filed 3–29–07; 8:45 am] 

BILLING CODE 4510–26–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 9 and 52 

[FAR Case 2006–011; Docket 200-0001; 

Sequence 6] 

RIN 9000–AK73 

Federal Acquisition Regulation; FAR 

Case 2006–011, Representations and 

Certifications - Tax Delinquency 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are proposing to amend the 

Federal Acquisition Regulation (FAR) to 

change the provision regarding 

certification regarding debarment, 

suspension, proposed debarment, and 

other responsibility matters, and to 

make changes to the language regarding 

contractor qualifications, to add 

language regarding nonpayment of 

taxes. This proposed rule requires 

offerors to also certify whether or not 

they have, within a three-year period 

preceding the offer, been convicted of or 

had a civil judgment rendered against 

them for violating any tax law or failing 

to pay any tax, or been notified of any 

delinquent taxes for which the liability 

remains unsatisfied. In addition, the 

offeror will be required to certify 

whether or not they have received a 

notice of a tax lien filed against them for 

which the liability remains unsatisfied 

or the lien has not been released. 

DATES: Interested parties should submit 

written comments to the FAR 

Secretariat on or before May 29, 2007 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments 

identified by FAR case 2006–011 by any 

of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for any 

document by first selecting the proper 

document types and selecting ‘‘Federal 

Acquisition Regulation’’ as the agency 

of choice. At the ‘‘Keyword’’ prompt, 

type in the FAR case number (for 

example, FAR Case 2006–001) and click 

on the ‘‘Submit’’ button. Please include 

any personal and/or business 

information inside the document.You 

may also search for any document by 

clicking on the ‘‘’’Advanced search/ 

document search’’ tab at the top of the 

screen, selecting from the agency field 

‘‘Federal Acquisition Regulation ’’, and 

typing the FAR case number in the 

keyword field. Select the ‘‘Submit’’

button. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW, Room 4035, 

ATTN: Laurieann Duarte, Washington, 

DC 20405. 

Instructions: Please submit comments 

only and cite FAR case 2006–011 in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

William Clark, Procurement Analyst, at 

(202) 219–1813 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAR case 2006–011. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Offerors are currently required to 

certify whether or not, within a threeyear period preceding an offer, they 

have been convicted of or had a civil 

judgment rendered against them for tax 

evasion or are presently indicted for, or 

otherwise criminally or civilly charged 

with, the commission of tax evasion. 

This proposed rule requires offerors to 

also certify whether or not they have, 

within a three-year period preceding the 

offer, been convicted of or had a civil 

judgment rendered against them for 

violating any tax law or failing to pay 

any tax, or been notified of any 

delinquent taxes for which the liability 

remains unsatisfied. The offeror also 

will be required to certify whether or 

not they have received a notice of a tax 

lien filed against them for which the 

liability remains unsatisfied or the lien 

has not been released. The additional 

certifications are needed to identify 

prospective offerors that may have 

outstanding tax obligations that may be 

delinquent so that the Government can 

make an informed responsibility 

determination, as necessary. If an offeror 

certifies that any of these conditions 

exist, the contracting officer may ask the 

offeror for additional information 

related to the obligation to evaluate the 

offeror’s ability to perform under the 

contract. In accordance with FAR 1.107, 


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