[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR3009.104-72]



[Page 72-73]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 30--DEPARTMENT OF HOMELAND SECURITY, HOMELAND SECURITY 

                      ACQUISITION REGULATION (HSAR)

 

PART 3009_CONTRACTOR QUALIFICATIONS--Table of Contents

 

           Subpart 3009.1_Responsible Prospective Contractors

 

Sec. 3009.104-72  Definitions.



    As used in this subpart--

    Expanded Affiliated Group means an affiliated group as defined in 

section 1504(a) of the Internal Revenue Code of 1986 (without regard to 

section 1504(b) of such Code), except that section 1504 of such Code 

shall be applied by substituting `more than 50 percent' for `at least 80 

percent' each place it appears.

    Foreign Incorporated Entity means any entity which is, or but for 

subsection (b) of section 835 of the Homeland Security Act, Pub. L. 107-

296, would be, treated as a foreign corporation for purposes of the 

Internal Revenue Code of 1986.

    Inverted Domestic Corporation. A foreign incorporated entity shall 

be treated as an inverted domestic corporation if, pursuant to a plan 

(or a series of related transactions)--

    (1) The entity completes after the date of enactment of this Act, 

the direct or indirect acquisition of substantially all of the 

properties held directly or indirectly by a domestic corporation or 

substantially all of the properties constituting a trade or business of 

a domestic partnership;

    (2) After the acquisition at least 80 percent of the stock (by vote 

or value) of the entity is held--

    (i) In the case of an acquisition with respect to a domestic 

corporation, by former shareholders of the domestic corporation by 

reason of holding stock in the domestic corporation; or

    (ii) In the case of an acquisition with respect to a domestic 

partnership, by former partners of the domestic partnership by reason of 

holding a capital or profits interest in the domestic partnership; and



[[Page 73]]



    (3) The expanded affiliated group which after the acquisition 

includes the entity does not have substantial business activities in the 

foreign country in which or under the law of which the entity is created 

or organized when compared to the total business activities of such 

expanded affiliated group.

    Person, domestic, and foreign have the meanings given such terms by 

paragraphs (1), (4), and (5) of section 7701(a) of the Internal Revenue 

Code of 1986, respectively.