Transfers of Know-How under Section 351
JL Ruppert, DK Pansius - Denv. LJ, 1978 - HeinOnline
JL Ruppert, DK Pansius
Denv. LJ, 1978•HeinOnlineTransfers of Know-How Under Section 351* Page 1 Transfers of Know-How Under Section
351* By John L. Ruppert** and David K. Pansius*** Introduction Transfers of technical
information, in particular, know-how, by a domestic parent corporation to a controlled foreign
subsidiary pose difficult tax problems for the domestic parent. Section 351(a) of the Internal
Revenue Code provides that: [N]o gain or loss shall be recognized if property is transferee! to a
corporation by one or more persons solely in exchange for stock or securities' in such …
351* By John L. Ruppert** and David K. Pansius*** Introduction Transfers of technical
information, in particular, know-how, by a domestic parent corporation to a controlled foreign
subsidiary pose difficult tax problems for the domestic parent. Section 351(a) of the Internal
Revenue Code provides that: [N]o gain or loss shall be recognized if property is transferee! to a
corporation by one or more persons solely in exchange for stock or securities' in such …
[N] o gain or loss shall be recognized if property is transferee! to a corporation by one or more persons solely in exchange for stock or securities' in such corporation and immediately after the exchange such... persons are in control2... of the corporation. For pur-
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