described if paragraph (1) were applied without regard to subparagraphs (B) and (C) thereof. (3) Determinations with respect to management and control and business activities (A) Management and control For purposes of paragraph (1)(C)(ii)— (i) In general The Secretary shall prescribe regulations for purposes of determining cases in which the management and control of an expanded affiliated group is to be treated as occurring, directly or indirectly, primarily within the United States. (ii) Executive officers and senior management Such regulations shall provide that the management and control of an expanded affiliated group shall be treated as occurring, directly or indirectly, primarily within the United States if substantially all of the executive officers and senior management of the expanded affiliated group who exercise day-to-day responsibility for making decisions involving strategic, financial, and operational policies of the expanded affiliated group are based or primarily located within the United States. Individuals who in fact exercise such day-to-day responsibilities shall be treated as executive officers and senior management regardless of their title. (B) Substantial business activities For purposes of paragraph (1)(B), the term substantial business activities shall have the meaning given such term under regulations in effect on January 4, 2017, except that the Secretary may issue regulations increasing the threshold percent in any of the tests under such regulations for determining if business activities constitute substantial business activities for purposes of this subsection. (C) Significant domestic business activities For purposes of paragraph (1)(C)(ii), an expanded affiliated group has significant domestic business activities if at least 25 percent of— (i) the employees of the group are based in the United States, (ii) the employee compensation incurred by the group is incurred with respect to employees based in the United States, (iii) the assets of the group are located in the United