Extract to table

As set forth in greater detail below, the satisfaction of the business purpose requirement is a prerequisite to tax-free treatment, and the analysis of this requirement in the present matter raises significant issues that must be addressed before Calderwood & Harkness can deliver the requested tax opinion

This regulation provides that a distribution of stock of a controlled corporation must be motivated, in whole or substantial part, by one or more corporate business purposes

The purpose must be a purpose of the corporation itself, as distinct from a purpose of a particular shareholder

The Ninth Circuit held in Wilson that the business purpose must be a purpose of the distributing corporation, not merely a purpose of its shareholders

" Rather, the totality of the evidence, including the stated motivations of the parties, the economic substance of the transaction, and the circumstances surrounding the decision to pursue the distribution, must be considered

These authorities collectively establish the framework within which the present analysis must be conducted