Rev. Rul. 73-10

Sections 4916(c)(1)(A) and (B) of the Internal Revenue Code of 1954 provide, in part, that in order to qualify as a less developed country corporation a foreign corporation must, among other requirements, have assets 80 percent or more in value of which on each day of the applicable periods set forth in paragraph (3) of section 4916(c) of the Code consist of certain described assets.

Section 4916(c)(1)(C) of the Code provides an alternative test for qualifying as a less developed country corporation and provides, in part, that a foreign corporation must have assets 80 percent or more in value of which consist of certain described assets. Unlike sections 4916(c)(1)(A) and (B) of the Code, section 4916(c)(1)(C) of the Code does not set forth the number of days in the applicable periods set forth in section 4916(c)(3) of the Code during which a foreign corporation must meet the asset ownership test.

Held, no distinction is intended under sections 4916(c)(1)(A), (B) and (C) of the Code with respect to the time requirement in applying the asset ownership tests thereof, i.e., in addition to the other requirements of section 4916(c)(1)(C) of the Code, the 80 percent asset ownership test thereof must be met on each day of the applicable periods specified in section 4916(c)(3) of the Code in order for a foreign corporation to qualify as a less developed country corporation under section 4916(c)(1)(C) of the Code. Such foreign corporation can, in the absence of affirmative evidence showing that the 80 percent asset ownership requirement of section 4916(c)(1)(C) of the Code has not been satisfied on each day of applicable periods specified in section 4916(c)(3) of the Code, satisfy such ownership requirement by establishing to the satisfaction of the Commissioner of Internal Revenue, or appropriate district director, as applicable, that the requirement has been satisfied on the last day of each quarter of the applicable periods.