(B) Result. The transfer of TFC stock by the UST to DC is a trigger event as defined in paragraph j)4) of this section. However, the transfer does not constitute a triggering event as defined in paragraph (k) (1) (ii) of this section when DC enters into a new profit recognition agreement for the initial transfer that DC designates as a U.S. ceding officer for the purposes of this section. In accordance with paragraphs (c) (4) (i) and (ii) of this section, if DC is required to identify the benefit of the new Profit Recognition Agreement, the TFC and TFD stock base would be increased by the amount of profits recorded. However, in accordance with paragraph 4, paragraph 4, paragraph iii), of this section, no adjustments would be made to the basis of the DC stock obtained in the third year as a result of such recognition. If the conditions for the application of paragraph (14) of this section are met, UST could instead conclude the new recognition agreement for the first transmission. (B) if the benefit was recognized in accordance with Section 367, point a) (1); (iii) a calculation of the reduction in the amount of profits subject to the benefit recognition agreement resulting from the benefit recognition event (for example. B in the case of a profit recognition event described in paragraph 2 of this section). (B) Result. Since DC did not submit an ARG containing its tax return in a timely manner for the year of the FS transfer, it was not possible to present the ARG in a timely manner in accordance with paragraph (1) of this section. Moreover, since DC has deliberately chosen not to submit ANRs for FS transmission, its actions constitute a deliberate failure to file an ARG in a timely manner. Accordingly, DC is not eligible under paragraph p of this section, the GRA is not considered to be submitted in a timely manner for the purposes of paragraph (d) (1) of this section and DC must recognize the total amount of profit made during the FS transfer in year 1.
(ii) a special scheme for the inclusion of benefits. If, with respect to the new profit recognition agreement, the U.S. assignor is not the C-granter with respect to the existing benefit recognition agreement or a member of the consolidated group, whose U.S. divester was a member of the benefit recognition agreement that existed at the time of the initial transfer, any benefit recognized under paragraph (1) (i) of the section must be included in the benefit recognition contract in which the section the new benefit recognition agreement. the taxable year in which the profit recognition event occurs. (2) To be recognized by an election. If the UST made a choice in paragraph (c) (2) (vi) of this section with the benefit recognition agreement filed for the first transfer, the result would be the same as in paragraph (q) (2) (ii) (ii) (b) (b) (1) of this section (paragraph 1) in the results of this example 2, except that the UST must include in the income the 50x benefit that was recognized under the agreement recognition of the benefits for its profit agreement for year 3. Any additional tax payable on the 50 x profit and interest due on the additional tax must be included in this return. The amount of the 50x profit recognized by the UST under the Benefit Recognition Agreement, which is considered a Section 1248 dividend (a), will be determined in year 3. (i) the condition set out in paragraph (k) (14) (i) of this section is met because the transfer is considered a non-recognition transaction (provided that the UST enters into a recognition contract in accordance with paragraph (q) (2) (iv) (b) (1) of this section (paragraph 1) in the results of this example 4).