- 24 -
section 936(a)(1)(A)(i). That term is used in more than 20 other
sections of the Code, and we do not find a statutory definition
for that term as used in any of these other sections. Code
provisions generally are to be interpreted so congressional use
of the same words indicates an intent to have the same meaning
apply, and congressional use of different words indicates an
intent to have a different meaning apply. Under these
circumstances, authoritative interpretations of that term as used
in other provisions of the Code may be regarded as proper
precedent for interpreting that term as used in section 936(a).
In particular, we focus on opinions interpreting that term in the
Western Hemisphere Trading Corporations context, and on Treasury
Regulations interpreting that term in the context of sections
179, 355, and 367. Applying our analysis in MedChem (P.R.), Inc.
v. Commissioner, 116 T.C. 308 (2001), on appeal (1st Cir., Aug.
24, 2001), and the interpretations in Western Hemisphere Trading
Corporations cases to the factual matters established by the
parties’ stipulations, pleadings, affidavits, etc., we conclude
that EAPR’s activities amounted to the active conduct of a trade
or business in Puerto Rico, within the meaning of section 936(a),
during the years in issue.
We conclude that respondent’s contentions as to disputes
over factual matters are all (1) contradicted by the stipulations
or pleadings, or (2) immaterial, or (3) both.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011