(4) Basic adjustments for recognised earnings. The following basic adjustments shall be made when profit is recognised in accordance with point (c)(1)(i) of this Section. (ii) Multiple events during a fiscal year. Except as otherwise provided in this paragraph (d)(2)(ii) where the initial transfer and one or more orders or other events (even if an exception applies to triggering events) affecting the earnings recognition agreement entered into by the U.S. assignor with respect to the initial transfer occur in the same fiscal year of that U.S. assignor, or where multiple injunctions or other events that do not include the initial transfer are to be concluded only with a profit recognition agreement and included in the U.S. assignor`s timely tax return for that fiscal year. The recognition of benefits agreement must describe the initial transfer and/or any provision or other event affecting the recognition of benefits agreement (even if an exception applies to the triggering event). However, this paragraph shall not apply where such a provision or other event requires that a new recognition of benefit agreement be entered into by a person other than the United States assignor in respect of the existing initial transfer or recognition of benefit agreement. (3) Description of the shares or securities transferred and other information. The profit recognition agreement must contain the following elements: (E) Alternative facts.
An intercompany transaction followed by a triggering event. Take the same facts as in paragraph (q) (2) (xx) (A) of this section (the facts of this example 20), except that TFC, instead of the sale of TFC shares to X by USP in year 4, sells all of TFD`s shares in a transaction that constitutes a triggering event in accordance with paragraph (j) (1) of this section. Pursuant to paragraph (c) (1)(i) of this Section, UST shall record a profit of $50x under the Benefit Recognition Agreement. In accordance with paragraphs (c) (4) (i) and (ii) of this Section, the basis of TFC shares or TFD shares is multiplied by 50 at the time of the first transmission. (i) any assignment or other event identified as a triggering event in a new profit recognition agreement referred to in subsection (k) (14) (iii) of this Section; and (2) obligation to sign. The inclusion of an unsigned copy of the Recognition of Benefit Agreement with the timely return of the U.S. polluter must satisfy the signature requirement in paragraph (e)(1) of this Section if the United States The Assignor retains the originally signed Recognition of Benefit Agreement in the manner defined in paragraph 1.6001-1(e). (D) Alternative facts. Intercompany operation followed by a complete liquidation of the transferee`s foreign company.
Start from the same facts as in paragraph (q) (2) (xx) (A) of this section (the facts of this example 20), except that TFC distributes in year 4, instead of the sale of TFC shares to X by USP, all of its assets in a complete liquidation to USP, which is subject to sections 332 and 337. The result is the same as in paragraph (q) (2) (xx) (B) of this section (the facts of this example 20), since UST takes into account, in accordance with the provisions of article 1.1502-13 of year 4, the profit (the intercompany item) of the distribution of year 3. (ix) Any reference to a contemptuous of the United States who opposes a profit recognition agreement means, where applicable, that the joint parent company of the consolidated group, of which the contemptuous American is a member, has submitted the profit recognition agreement on behalf of the United States. The contemptuous referred to in point (d)(3) of this Section. . . .