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ownership by one foreign person of either 25 percent of the
voting stock or 25 percent of the value of all classes of the
domestic corporation's stock. A "foreign person" is any person
who is not a "United States person" under section 7701(a)(30),
including a corporation. Sec. 6038A(c)(3); sec. 1.6038A-1(f)(3),
Income Tax Regs. Petitioner stipulated that it always has been a
corporation and from December 22, 1988, to June 30, 1992, that it
was wholly owned by a foreign corporation, ASAT, Ltd.
Consequently, petitioner is a "reporting corporation" for its
year ending April 30, 1991, the taxable year covered by the
notice of deficiency.
2. Related Party
Section 6038A(c)(2)(A) defines a "related party" to include
any 25-percent foreign shareholder of the reporting corporation.
ASAT, Ltd., owned 100 percent of petitioner at all times during
the year in issue. Thus, ASAT, Ltd., is a "related party" to
petitioner for its taxable year ending April 30, 1991.
3. Transaction
Section 1.6038A-2(a)(2), Income Tax Regs., provides a
definition of "transaction" in the context of triggering Form
5472 filing requirements: "A reportable transaction is any
transaction of the types listed in paragraphs (b)(3) and (4) of
this section."
Section 1.6038A-2(b)(3), Income Tax Regs., provides in part:
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