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business of the employer, irrespective of the rules of
paragraph (d)(1) of this section. * * * [Sec. 1.864-
7(e), Income Tax Regs.]
(5) Office or other fixed place of business of a related
person. The regulations provide:
The fact that a nonresident alien individual or a
foreign corporation is related in some manner to
another person who has an office or other fixed place
of business shall not of itself mean that such office
or other fixed place of business of the other person is
the office or other fixed place of business of the
nonresident alien individual or foreign corporation.
Thus, for example, the U.S. office of foreign
corporation M, a wholly owned subsidiary corporation of
foreign corporation N, shall not be considered the
office or other fixed place of business of N unless the
facts and circumstances show that N is engaged in trade
or business in the United States through that office or
other fixed place of business. However, see paragraph
(b)(2) of this section * * * [regarding relatively
sporadic or infrequent activities]. * * * [Sec. 1.864-
7(f), Income Tax Regs.]
With the foregoing factors in mind, we consider the facts
and circumstances of the instant case. The record establishes
that LTD had a fixed facility in the sense that it used the San
Antonio office to engage in its trade or business. The San
Antonio office, upon receipt of investment instructions from the
promoters, effected the transactions in question. The San
Antonio office’s address was used as LTD’s return address on,
inter alia, LTD’s early discretionary authorizations, a FEIM Fund
brochure, an Inversat Fund brochure, a brochure for "selected
investors who are not residents of the U.S.A.", a printed
newsletter entitled "InverNews", and in documents for a loan to a
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