FAR 52.209-10 - Prohibition on Contracting with Inverted Domestic Corporations
Prescribed in 9.108-5(b) | ||
Effective Date: | 1 May 2012 | |
Clause or Provision: | Clause | |
Provision or Clause Number: | 52.209-10 - Prohibition on Contracting with Inverted Domestic Corporations | |
Principle Type And/Or Purpose of Contract: | ||
Required: | ||
Applicable: | Time and Materials/Labor Hour; | |
Optional: | ||
Subject: | Inverted Domestic Corporations | |
ProcurementType: | ||
Contract Threshold: | ||
Prescription Overview: |
Prescription(b) Include the clause at 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations, in each solicitation and contract for the acquisition of products or services (including construction).
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Clause Overview: |
Clause(a) DefinitionsAs used in this clause— “Inverted domestic corporation” means a foreign incorporated entity which is treated as an inverted domestic corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a foreign country, that meets the criteria specified in 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395(c). An inverted domestic corporation as herein defined does not meet the definition of an inverted domestic corporation as defined by the Internal Revenue Code at 26 U.S.C. 7874. “Subsidiary” means an entity in which more than 50 percent of the entity is owned—
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Important Notes/Requirements: | ||
Subcontract Threshold: | ||
Incorporated by Reference: | Yes | |
Uniform Contract Format: | ||
Editor: | Marshall |
Personal notes.