TAX 9869 Lecture Notes - Lecture 62: Tax Haven, Controlled Foreign Corporation, Passive Income

4 views3 pages
11 Aug 2020
Let’s say we have a foreign partnership which owns a US corporation and a foreign corp
Is the US corp a USSH of the foreign? Now there is downward attribution
I attribute the ownership the foreign pship has in the foreign corporation to US
corporation so US corp is viewed as though it owns foreign corporation 100%
So foreign corp is a CFC
Does this mean USSH has to pick up Subpart F income? No, not necessarily b/c
the US corp is NOT a direct/indirect owner through a foreign entity-only owned
through attribution because it is attributed the ownership from the foreign
partnership and since the ownership is attributed from the FP, not a
direct/indirect ownership, US corp does not have to pick up subpart F income
Look to anyone on top
US guy owns 10% of the FP and foreign corp owns 90% of the FP
This is still a CFC because more than 50% owned through attribution by this US Corp
Now made this foreign corp a CFC b/c owned through attribution by US Corp
Guy on top (US corp), is a USSH because owns 10% or more, now USSH indirectly into
foreign corp but because of change of law is a CFC, has to pick up 10% of the Subpart F
Pick up 10% of GILTI- this guy gets in trouble b/c no one wants to pick up Subpart F
Subpart F income and GILTI for an individual are subject to tax @ordinary income
No benefit- qualified dividends, anything like that
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.