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This article provides an overview of the federal tax reporting requirements by U.S. persons for foreign assets and gifts, including addressing prior noncompliance. In our globalized economy, it is increasingly [...]

Typically, personal jurisdiction requirements barred the PBGC from bringing suit against the foreign entity in the United States, as described later. Further, attempts to collect against foreign controlled group members [...], Although surprising to many companies, federal law has long put all entities in a controlled group on the hook for the unfunded pension liabilities of any member. Even more surprising, this liability extends beyond the US border to foreign controlled group members. Until the recent district court decision in PBGC v. Asahi Tec Corp., (1) however, the Pension Benefits Guaranty Corporation (PBGC) has had limited ability to recover pension liabilities from foreign controlled group members. This ruling appears to open the door for the PBGC to assert controlled group liability on foreign entities with limited connections to the United States, seemingly based only on being a member of a controlled group.

A look at the compatibility of Iceland's controlled foreign corporation rule (CFC) with the European Economic Area Agreement Freedoms is presented. The CFC rule was introduced in 2009 following the European Court of Justice's decision on Cadbury Schweppes case. The rule was intended to prevent transfer of profits to a controlled entity established in low-tax jurisdiction.

A comparison of two Italian tax regimes from the EU law perspective is presented. The Italian controlled foreign companies (CFC) regime and tax residence rules were both aimed to counteract abusive structures that divert income attributable to resident taxpayers abroad. The regimes widened the Italian tax jurisdictions to include income normally falling outside its scope.

March 27, 2009 On March 27, 2009, Tax Executives Institute submitted the following comments to the U.S. Department of the Treasury and the Internal Revenue Service relating to proposed regulations [...]

The application of anti-abuse measures for direct-taxation, with specific reference to controlled foreign company (CFC) legislation in the European Union, is discussed. A comparative survey and an assessment of the distorting effects of CFC legislation in four Member States is also presented.

An overview of the controlled foreign company (CFC) legislation is presented. This legislation has been introduced for the purpose of countering the use of 'base companies' in low-tax jurisdictions. Information about the taxation of CFC income is also presented.

High-net-worth clients often question their tax professionals about using offshore holding companies to avoid taxes. This two-part article discusses the tax consequences for the average taxpayer and considers when foreign [...]

The substantial revisions to the PRC Company Law (Company Law), which became effective on January 1 2006 and the related amendments to the PRC Administration of Company Registration Regulations (Registration [...]

The compatibility of CFC (controlled foreign companies) rules with the Community law, in particular the principles of freedom of establishment and freedom of movement of capital, is analyzed. The CFC rules that constitute special regulations for low-taxed CFCs with passive income abroad are not justifiable under Community law.

The authors provide specific and detailed tax law information concerning IRS final regulations under IRC section 367(b) which concern section 1248. The regulations provide guidance on U.S. shareholder taxation and U.S. corporation tax treatment related to controlled foreign corporations and foreign corporations.

While taxpayers are not subject to the new hybrid branch regulations until at least their tax year beginning after June 30, 2005, they hybrid branch issue cannot be ignored. In fact, as foreign transactions in a global economy expand, the debate over taxing American investors on foreign transactions will grow and become increasingly more spirited.

The Taxpayer Relief Act of 1997 was introduced in the US in August 1997 and amends the rules relating to international taxation and capital gains relief. Additionally, the act reduces the maximum tax rates for individuals from 28% to 20%. Many of the changes relating to business will affect US multinationals, including abolition of the controlled foreign corporations/ passive foreign investment companies overlap. Details of the amendments to the act are presented.

Hungary introduced controlled foreign company (CFC) legislation in late 1996 and is one of 18 countries where such legislation has been enacted. Hungary's enactment of the new rules is thought to be attributed to impetus from OECD members, despite the Finance Ministry not considering it necessary for Hungary's revenue purposes. The rationale and structure of Hungary's CFC legislation is discussed.

The Lower Administrative Court of Starsbourg has ruled that France's CFC legislation conflicts with the country's tax treaty obligations. The rules were enacted as part of the Finance Law 1980 and functioned mainly as a deterrent until the beginning of the 1990s. Criticism of the CFC rules have focused on the conflict with tax treaties, and there is examination of the position of the tax authorities and the differing premise used by the Lower Court of Paris to reach a conclusion.