Controlled Foreign Company Regimes and Double Taxation

Asia Pacific Tax Bulletin, Vol. 12, pp. 3-5, 2006

Victoria University of Wellington Legal Research Paper No. 74/2015

4 Pages Posted: 14 May 2010 Last revised: 10 Jun 2015

See all articles by John Prebble QC

John Prebble QC

Victoria University of Wellington - Faculty of Law; Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien; University of Notre Dame Australia - School of Law

Date Written: 2006

Abstract

Without a controlled foreign company regime, taxpayers can establish companies in other countries to trap foreign-source income or accept income diverted from domestic sources. At one extreme, a regime may cover all foreign jurisdictions. At another, it may cover only tax havens. Some countries apply their controlled foreign company regimes to certain categories of income only, generally passive income, or income from transactions with the foreign company’s domestic owners. Other regimes cover all income, including the income of active businesses. Regimes ordinarily contain provisions to mitigate double taxation that may occur when a local taxpayer sets up a company in a foreign jurisdiction for a commercial or industrial purpose.

Keywords: Income Tax law, Company Law, Full Imputation, Controlled Foreign Companies, Avoidance, Double Taxation

JEL Classification: K33, K34

Suggested Citation

Prebble QC, John, Controlled Foreign Company Regimes and Double Taxation (2006). Asia Pacific Tax Bulletin, Vol. 12, pp. 3-5, 2006; Victoria University of Wellington Legal Research Paper No. 74/2015. Available at SSRN: https://ssrn.com/abstract=1605420

John Prebble QC (Contact Author)

Victoria University of Wellington - Faculty of Law ( email )

PO Box 600
Wellington, 6140
New Zealand
+64 4 463 6311 (Phone)
Papers Indexed at HOME PAGE (Fax)

HOME PAGE: http://www.victoria.ac.nz/law/staff/prebble-scholarly.aspx

Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

University of Notre Dame Australia - School of Law

Sydney Campus, New South Wales
Australia

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