Common use of Alternative facts Clause in Contracts

Alternative facts. The facts are the same as in paragraph (iii), of this Example 5, except that P only sells 5 percent of its interest in DE1X to F. Pursuant to Rev. Rul. 99–5 (1999– 1 CB 434), see § 601.601(d)(2)(ii)(b) of this chap- ter, the transaction is treated as if P sold 5 percent of its interest in each of DE1X’s as- sets to F, and then immediately thereafter P and F transferred their interests in the as- sets of DE1X to a partnership in exchange for an ownership interest therein. The sale of the 5 percent interest in DE1X generally re- sults in a foreign use triggering event be- cause a portion of the dual consolidated loss carries over under Country X tax law and is available under U.S. tax principles to offset income of the owner of the interest in DE1X, a hybrid entity, which in the hands of F is not a separate unit. It is also a foreign use because the loss is available under U.S. tax principles to offset the income of F, a foreign corporation. See § 1.1503(d)–3(a)(1). However, pursuant to the exception under § 1.1503(d)– 3(c)(5) (relating to a de minimis reduction of an interest in a separate unit), such avail- ability does not result in a foreign use. In ad- dition, pursuant to § 1.1503(d)–6(f)(1) and (3), the deemed transfers pursuant to Rev. Rul. 99–5 as a result of the sale are not treated as triggering events described in § 1.1503(d)– 6(e)(1)(iv) or (v).

Alternative facts. The facts are the same as in paragraph (iii), of this Example 5, except that P only sells 5 percent of its interest in- terest in DE1X to F. Pursuant to Rev. Rul. 99–5 (1999– 1 1999–1 CB 434), see § 601.601(d)(2)(ii)(b) of this chap- terchapter, the transaction is treated as if P sold 5 percent of its interest in each of DE1X’s as- sets assets to F, and then immediately thereafter P and F transferred their interests inter- ests in the as- sets assets of DE1X to a partnership in exchange for an ownership interest therein. The sale of the 5 percent interest in DE1X generally re- sults results in a foreign use triggering event be- cause because a portion of the dual consolidated xxxxxxx- dated loss carries over under Country X tax law and is available under U.S. tax principles to offset income of the owner of the interest in DE1X, a hybrid entity, which in the hands of F is not a separate unit. It is also a foreign for- eign use because the loss is available under U.S. tax principles to offset the income of F, a foreign corporation. See § 1.1503(d)–3(a)(1). However, pursuant to the exception under § 1.1503(d)– 3(c)(51.1503(d)–3(c)(5) (relating to a de minimis reduction re- duction of an interest in a separate unit), such avail- ability availability does not result in a foreign use. In ad- ditionaddition, pursuant to § 1.1503(d)–6(f)(1) and (3), the deemed transfers pursuant to Rev. Rul. 99–5 as a result of the sale are not treated as triggering events described in § 1.1503(d)– 6(e)(1)(iv1.1503(d)–6(e)(1)(iv) or (v).