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  "documentTitle": "Bausch Health Companies | Investor Conference Presentation Deck | 25 slides",
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  "presentationDate": "2021-11-01 00:00:00",
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  "notes": "The slide uses legal citations to build an argument against the IRS's interpretation of 'substantially all' assets.",
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      "text": "The IRS’s new position is flatly contradicted by long-standing case law\nSee Nat’l Bk of Comm. of Norfolk v. United States, 158 F. Supp. 887 (E.D.Va. 1958) (transfer of 81% of target’s assets to acquiror did not constitute “substantially all” of target’s assets); Arctic Ice Machine Co. v. Comm’r, 23 B.T.A. 1223 (1931) (transfer of all of target’s operating assets, constituting 68% of total assets, did not constitute “substantially all” of target’s assets)\nMoreover, IRS position is contradicted by the IRS’s own policy of refusing to give taxpayers rulings that a transaction satisfies “substantially all” test unless target transfers at least 90% of its net assets and 70% of its gross assets to an acquiring corporation. See Rev. Proc. 77-37, 1977-2 C.B. 568.\nSee also IRS Priv. Ltr. Rul. 201014002, above, (ruling that Granite Trust transaction did not qualify as reorganization)",
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      "text": "IRS is now taking the novel position that a pro rata distribution of 69% of liquidating corporation’s assets constitutes “substantially all” of liquidating subsidiary’s assets such that the transaction is tax-free “reorganization” in which no loss is recognized",
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      "text": "Further evidencing that the IRS’s new position would result in a change in law, the House Ways and Means Committee recently proposed amendments to the Internal Revenue Code that would significantly curtail the scope of Granite Trust",
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      "text": "Granite Trust Transaction Continued",
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