§ 5881. Greenmail
(a)
Imposition of tax
There is hereby imposed on any person who receives greenmail a tax equal to 50 percent of gain or other income of such person by reason of such receipt.
(b)
Greenmail
For purposes of this section, the term “greenmail” means any consideration transferred by a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation from any shareholder if—
(1)
such shareholder held such stock (as determined under section
1223) for less than 2 years before entering into the agreement to make the transfer,
(2)
at some time during the 2-year period ending on the date of such acquisition—
made or threatened to make a public tender offer for stock of such corporation, and
(3)
such acquisition is pursuant to an offer which was not made on the same terms to all shareholders.
For purposes of the preceding sentence, payments made in connection with, or in transactions related to, an acquisition shall be treated as paid in such acquisition.
(c)
Other definitions
For purposes of this section—
(d)
Tax applies whether or not amount recognized
The tax imposed by this section shall apply whether or not the gain or other income referred to in subsection (a) is recognized.
(e)
Administrative provisions
For purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.