Public Law 91–693

That section 368

Taxes.

Corporations, statutory mergers.

68A Stat. 120; 82 Stat. 1310.

26 USC 368.

(a) (2) of the Internal Revenue Code of 1954 (definitions relating to corporate reorganizations) is amended by adding at the end thereof the following new subparagraph:

“(E)“(E)

Statutory merger using voting stock of corporation controlling merged corporation.—

A transaction otherwise qualifying under paragraph (1)(A) shall not be disqualified by reason of the fact that stock of a corporation (referred to in this subparagraph as the ‘controlling corporation’) which before the merger was in control of the merged corporation is used in the transaction, if—

“(i)“(i)

after the transaction, the corporation surviving the merger holds substantially all of its properties and of the properties of the merged corporation (other than stock of the controlling corporation distributed in the transaction); and

#

“(ii)“(ii)

in the transaction, former shareholders of the surviving corporation exchanged, for an amount of voting stock of the controlling corporation, an amount of stock in the surviving corporation which constitutes control of such corporation.”

#

#