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directly or indirectly within the meaning of sections 951(a) and
958(a).
Respondent argues that constructive ownership of the Avdel
shares under the grantor trust rules, specifically section
677(a), satisfies the direct or indirect ownership requirement of
section 951(a). We disagree. Our comparison of the language in
2(...continued)
SEC. 318. CONSTRUCTIVE OWNERSHIP OF STOCK.
(a) General Rule.--For purposes of those
provisions of this subchapter to which the rules
contained in this section are expressly made
applicable--
* * * * * * *
(2) Attribution from partnerships,
estates, trusts, and corporations.--
* * * * * * *
(B) From trusts.--
(i) Stock owned, directly
or indirectly, by or for a
trust * * * shall be
considered as owned by its
beneficiaries in proportion to
the actuarial interest of such
beneficiaries in such trust.
(ii) Stock owned,
directly or indirectly, by or
for any portion of a trust of
which a person is considered
the owner under subpart E of
part I of subchapter J
(relating to grantors and
others treated as substantial
owners) shall be considered as
owned by such person.
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