Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
Networking Seminars one day technical update on Tax Planning for CFCs under Subpart F Income. One of the purposes of Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred.
As will be recalled from the previous blog posting that discussed so-called “Controlled Foreign Corporations” (CFC), a United States shareholder of a CFC can possibly be treated as having received “dividend” income at various times. These are when the US shareholder (i) has current income inclusions from the CFC under the anti-deferral regime (Subpart F income); (ii) has amounts actually distributed to him that had not been previously taxed as Subpart F income (these are ‘actual’ dividends); (iii) has amounts actually distributed to him that had been previously taxed as Subpart F income and (iv) recognizes gain on the sale of his CFC stock and the CFC has undistributed earnings and profits.
The question arises whether any of these amounts (i)-(iv), can be treated as “qualified dividend income”? Full details about the tax beneficial treatment of “qualified dividend Read More
Fundamental Foundation of Foreign Base Company Income and Controlled Foreign Corporations© Generally.
Therefore the first type of Foreign Base Company Income, Foreign Base Company Sales Income has as its function to be utilized as a sale or trade conduit offshore corporation in an international corporate structure. Certainly the intra activity sequences have many facets and planning opportunities. Those will be discussed subsequently in a more specific discussion of offshore companies that come within the characterization as a Foreign Base Company Sales Income.
A second category of Foreign Base Company Income whose activities are subject to Subpart F Income treatment is Foreign Base Company Service Income. This type of Subpart F Income is income derived by a foreign corporation in connection with the performance of technical, managerial, scientific, skilled, industrial, commercial or similar type services. In practicality corporate structures tend to find their utility most beneficial as an administrative or service oriented company in a favorable tax preferred Financial Center. Read More
Fundamental Foundation of Foreign Base Company Income and Controlled Foreign Corporations© Generally.
The essence of this corporate structure planning is to combine the concept of ownership structure that subjects a foreign corporation to a controlled status and activities of the corporate entity. The two concepts of controlled foreign corporate status and Foreign Based Company Income are intertwined in the implementation of Subpart F Income tax consequences.
The importance stems from the concept that Foreign Base Company Income and a controlled foreign corporation’s characterization subjecting it to Subpart F Income taxation are two separate considerations. One is whether a foreign corporation is a controlled foreign corporation. The second is whether the controlled foreign corporation has Foreign Based Company Income.
If a foreign corporate entity has Subpart F Income because it has Foreign Base Company Income, but it is not deemed a controlled foreign corporation by virtue of ownership, it is not subject to Subpart F Income treatment. Those are two distinct planning features. Read More
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