The SOI Corporate sample is the basis for the SOI Controlled Foreign Corporation
The regulations will not apply if neither the parent nor the subsidiary corporation is a controlled foreign corporation
immediately before or after the triangular reorganization.
954-3(b)(2)(ii), a branch or similar establishment of a controlled foreign corporation
treated as a separate corporation purchasing or selling on behalf of the remainder of the controlled foreign corporation
under paragraph (b)(2) (ii)(b) of this section, or the remainder of the controlled foreign corporation
treated as a separate corporation purchasing or selling on behalf of a branch or similar establishment of the controlled foreign corporation
Specifically, it is a controlled foreign corporation
if more than 25 percent, rather than 50 percent, of the voting power or value of shares is owned by U.
NOTE: All registrants will additionally receive a copy of the March 2011 issue of the Tax Management International Forum, containing papers by practitioners in 16 different countries discussing the tax treatment of controlled foreign corporations
in their particular country.
If the company was not treated as a domestic entity after it makes the election under Section 953(d), the earnings and profits which were taxed to the shareholders previously under the controlled foreign corporation
provisions would be capable of distribution with no tax consequence under Section 959(c).
A controlled foreign corporation
(CFC) was defined as any foreign corporation in which more than 50 percent of the voting stock was directly owned by one or more U.
Issues for Controlled Foreign Corporation
(CFC) Sellers of a Foreign Target
Those areas identified in 1996 and subsequently addressed by Congress include: overlap of the Controlled Foreign Corporation
(CFC) and Passive Foreign Investment Companies (PFIC); the non-controlled section 902 foreign tax credit basket; the excess passive asset rule in Section 956A and the subpart F treatment of active financial services income.
Code provides that the asset test is generally determined by value, except that assets of a non-publicly traded corporation that is a controlled foreign corporation
or that makes an election may be determined by adjusted basis.
It says the distributing parent company must include in income (as a dividend) the amount by which the value of the distributed stock exceeds its basis (in the parent's hands) but only to the extent of the earnings and profits accumulated in years when the distributed entity was a controlled foreign corporation
965, which creates a temporary incentive that allows them to repatriate accumulated foreign earnings via a dividends-received deduction for certain controlled foreign corporation
A federal controlled foreign corporation
(CFC) is generally defined as an entity that is organized in a foreign country and is owned greater than 50 percent by U.
corporation when it also receives interest from a controlled foreign corporation
shareholder of a controlled foreign corporation
(CFC) is deemed a participant in a reportable transaction where the CFC engages in a transaction that, were the CFC a domestic U.