approximate" to the burden on domestic corporations
and the taxes were similar enough "in substance" to be "mutually exclusive" proxies for one another.
other than the United States and the foreign target's jurisdiction) is the location of the new foreign parent, certain stock of the foreign parent issued to the shareholders of the existing foreign target will be disregarded in determining the ownership percentage of the former shareholders of the domestic corporation
, thereby raising the ownership attributable to the former shareholders of the U.
Section 1503(d) of the Code provides that, to the extent provided in regulations, any loss of a separate unit of a domestic corporation
will be subject to the DCL rules in the same manner as if it were a wholly owned subsidiary.
This provision ensures that a combination of a foreign corporation and a domestic corporation
can be effectuated using a new foreign corporation if there is a valid business purpose.
Unlike an interest in a domestic corporation
, which can be a USRPI in its entirety if the domestic corporation
either is or has been a USRPHC at any time during the determination period, an interest in a partnership is a USRPI only to the extent of the underlying assets.
In order to establish that a foreign shareholder's interest in a domestic corporation
is not a USRPI, the foreign shareholder and the domestic corporation
must follow the procedures set forth in Regs.
As a result, taxpayers can no longer take a position that a collective acquisition by multiple foreign corporations of the properties held by a domestic corporation
does not meet the acquisition test (i.
branch rather than to buy or organize a domestic corporation
(28) when expanding into the United States.
This ruling provides an example where, A, an individual, owned a majority of the outstanding stock of P, a domestic corporation
As one example, the notice describes a transaction in which shareholders of a domestic corporation
transfer all their stock to a newly formed foreign corporation for 79% of the stock of the foreign corporation and, in a related transaction, an investor transfers cash to the foreign corporation for the remaining 21% of stock.
The preamble to the proposed regulations asks "under what other circumstances a section 902 credit with respect to stock held by a partnership or other pass-through entity should flow through to a domestic corporation
1) Subject to certain exceptions, an NRA or foreign corporation's taxable sale of its domestic corporation
stock normally results in a foreign source gain or loss under Sec.