Notice 2016-73 used, but did not

define, the term “foreign subsidiary” when referring to entities held by the foreign acquired corporation for purposes of computing specified earnings and making adjustments to EAB. The proposed regulations similarly use the term “foreign subsidiary” for purposes of the EAB rules and would define the term based, in part, on the ownership rules in section 1248(c) (2)(B). See proposed §1.367(b)-3(g)(2) (ii).

G. EAB anti-abuse rule and prohibition against affirmative use