Tax Consequences of De Facto Merger Pursuant to Section 40(C)(2) and (6)(b) of the National Internal Revenue Code of 1997

April 25, 2002REVENUE MEMORANDUM RULING NO. 01-02SUBJECT:Tax Consequences of De Facto Merger Pursuant to Section 40(C)(2) and (6)(b) of the National Internal Revenue Code of 1997   TO:All Internal Revenue Officers and Others ConcernedPursuant to Section 4, in relation to Sections 40(C)(2), (4), (5), (6), 175, 176, and 196, and pertinent provisions of Titles II, IV and VII of the National Internal Revenue Code of 1997 (Tax Code of 1997), this Revenue Memorandum Ruling is issued to consolidate, provide, clarify and harmonize the existing guidelines on the tax consequences of a de facto merger under Section 40(C)(2) and (6)(b) of the Tax Code of 1997. This Revenue Memorandum Ruling shall apply solely and exclusively to, and may be relied upon only in, situations in which the facts are substantially similar to the facts stated below, but subject to the principle that for such transaction to be considered a de facto merger within the purview of Section 40(C)(2) in relation to 40(6)(b) of the Tax Code of 1997, the same must be undertaken for a bona fide...