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the planner/buyers, who were employed at the Alcon P.R. facility
by Kelly or Alcon P.R., made sure that Alcon P.R.’s personnel had
the materials necessary to manufacture Avitene. MedChem U.S.A.
owned all of the intangible assets used to manufacture Avitene
and, throughout the 3-year period, guaranteed to the Alcon
Entities that it would pay all debts and perform all obligations
of MedChem P.R. arising from the asset purchase and related
agreements.
Petitioners list in their brief 23 activities which, they
assert, demonstrate that MedChem P.R. actively conducted a trade
or business in Puerto Rico during the requisite 3-year period.
We disagree with this assertion. Some of the activities listed
by petitioners preceded the 3-year period, and very few of the
other listed activities occurred continually throughout that
period. The isolated activities which did occur during the
period do not support petitioners’ conclusion that MedChem P.R.
continued to conduct actively a trade or business in Puerto Rico.
The mere fact that MedChem P.R. owned the necessary raw materials
and manufacturing equipment and hired Alcon P.R. to use those
materials and equipment to manufacture Avitene in Puerto Rico is
not enough under the facts herein to conclude that MedChem P.R.
actively conducted a trade or business in Puerto Rico throughout
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