Common use of Result Clause in Contracts

Result. (A) As a result of FSX’s assump- tion of the FBX liabilities, including the ac- crued salary expense, a portion of the dual consolidated loss is available for a foreign use in year 2. This is the case because the de- duction that was taken into account in year 1 in computing the dual consolidated loss under U.S. tax principles will, under Country X tax law, be taken into account and will be available to offset the income of FSX, a for- eign corporation, in year 2. However, because this item of expense is made available solely as a result of the assumption of a liability of FBX, and such liability was incurred in the ordinary course of FBX’s trade or business, there will not be a foreign use of the year 1 dual consolidated loss pursuant to § 1.1503(d)– 3(c)(7). (B) The transfer of all the assets of FBX to FSX is a triggering event under § 1.1503(d)– 6(e)(1)(iv), unless P can rebut the triggering event under § 1.1503(d)–6(e)(2). For purposes of determining whether, under § 1.1503(d)– 6(e)(2)(ii), the transfer of assets resulted in a carryover under foreign law of FBX’s losses, expenses, or deductions, the exception to for- eign use for the assumption of liabilities is taken into account. However, the other ex- ceptions to foreign use do not apply for this purpose (or for purposes of demonstrating that no foreign use of a dual consolidated loss can occur in any other year under § 1.1503(d)–6(c), (e)(2)(i) or (j)(2)). See § 1. 1503(d)–3(c)(1). Provided the other require- ments of § 1.1503(d)–6(e)(2)(ii) and (iii) are sat- isfied, P may be able to rebut the occurrence of a triggering event upon the transfer of FBX’s assets to FSX.