Shamrock Limited $($Shamrock$)$ is an Irish incorporated, non$-$publicly traded entity, which was formed in January $2022,$ and treated as a foreign corporation with a calendar year end for U$.$S$.$ tax purposes. Shamrock has $10,000$ shares of voting common stock outstanding. Shamrock has no other outstanding or authorized stock. ABC, Inc., a U$.$S$.$ C$-$Corporation with a calendar year end, owns $8,000$ shares of Shamrock. Patrick, a U$.$S$.$ citizen, owns $750$ shares of Shamrock, and neither he nor any related person holds shares, directly or indirectly, in ABC, Inc. The remaining $1,250$ shares of Shamrock are owned by a United Kingdom $($UK$)$ corporation, Cheers Limited, which holds no shares, directly or indirectly, in ABC, Inc. Cheers Limited has $1,000$ shares of a single class of common stock outstanding, which are all owned by a UK individual, Nigel, who is unrelated to Patrick, and neither he nor a related person holds shares, directly or indirectly, in ABC, Inc.

Part B:

Alternatively, in calendar year $2022,$ assume Shamrock generated $$10,000,000$ of gross income having the following characteristics: $$6,000,000$ in foreign$-$source interest income from unrelated persons; $$800,000$ in gross income from active foreign business activities, which constitutes foreign base company sales income; and $$3,200,000$ in gross income from active foreign business activities, which does not constitute foreign base company sales income. For simplicity purposes, assume that Shamrock has no allowable deductions for the calendar year with respect to this gross income, and the ownership structure remains unchanged. Therefore, Ireland levied a corporate income tax at a flat rate of fifteen percent $(15\%)$ on the gross income generated by Shamrock $-$ i$.$e$.,$ Irish Corporate Income Tax: $$1,500,000[$Gross Income: $$10,000,000*15\%].$

In calendar year $2022,$ Shamrock$$s assets consist of the following: assets producing passive income or held for the production of passive income, which have an average adjusted basis of $$33,000,000$; and assets that are used to conduct its active trade or business activities, which have an average adjusted basis of $$27,000,000.$

$($a$.)$ Is Shamrock a controlled foreign corporation $($CFC$)$ for the current year?

$($b$.)$ Is Shamrock a Passive Foreign Investment Company $($PFIC$)$ for the current year?

$($c$.)$ In calendar year $2022,$ do any of the Shamrock shareholders have a Subpart F income inclusion? If so$,$ please identify the type of Subpart F income, the amount of each shareholder$$s Subpart F income inclusion, if any, and the associated U$.$S$.$ tax consequences, as well as how the inclusion will be $$basketed$$ for foreign tax credit limitation purposes, if applicable. For purposes of this question, assume a flat U$.$S$.$ corporate income tax rate of $21\%.$ Also, assume that no deductible U$.$S$.-$based expenses would be allocated and apportioned against any Subpart F income inclusion and ignore the Global Intangible Low$-$Taxed Income $($GILTI$)$ rules. Please explain.

$($d$.)$ Would the PFIC provisions apply to any of the Shamrock shareholders under these facts? If so$,$ please explain the different methods designed to eliminate the benefits of deferral and how the PFIC$$s undistributed earnings are subject to U$.$S$.$ taxation under each method.