Source: http://intltax.typepad.com/intltax_blog/foreign-tax-credits/
Timestamp: 2016-10-22 11:36:42
Document Index: 420015202

Matched Legal Cases: ['§302', '§302', '§302', '§992', '§301', '§361', '§1', '§901', '§871', '§861', '§1', '§ 960']

International Tax Blog: 901 Foreign Tax Credits International Tax Blog
| | March 31, 2016
| | September 07, 2015
International PLRs of Note for the 38th week of 2014 Today the IRS published the following Chief Counsel Advice relating to international taxation. CCA 201438020 - An individual who is present in the United States solely for the purpose of education, training, or obtaining special technical experience and who receives benefits under Article 20 (Students and Trainees) of the U.S.-China Income Tax Treaty (the “Treaty” or the “Chinese treaty”) may in certain circumstances, begin employment as a teacher, lecturer, or researcher in the United States...
Chart of Chief Counsel Advice AM2013-006: §302 Redemption Reduces CFC's Pool of Foreign Income Taxes Below is a chart of Chief Counsel Advice AM2013-006 in which the I.R.S. addressed the effect of a Code §302 redemption on a controlled foreign corporation's ("CFC") pool of foreign taxes. In Year 1, the CFC redeemed all of its stock owned by one of its shareholders in a transaction that qualified as a Code §302 distribution. The distribution reduced its pool of undistributed earnings and profits. In Year 2, the CFC paid a dividend...
International PLRs for the 36th week of 2013
Today the IRS published the following Private Letter Rulings relating to international taxation. PLR 201336009, PLR 201336010, PLR201336011 - Late Canadian registered retirement savings plan ("RRSP") deferral elections, including a locked-in retirement account (LIRA), or Locked-in RRSP. Form 8891. Rev. Proc. 2002-23. PLR 201336013 - Late IC DISC election. Form 4876-A, Code §992(b)(1)(A). PLR 201336018 - In determining a domestic parent corporation's interest expense allocation and apportionment for foreign tax credit purposes, the adjusted basis...
Posted on September 06, 2013 in 901 Foreign Tax Credits, 991 IC DISC, Authority - PLRs / CCAs, Country - Canada, Form 8891 | Permalink
Famous Tax Quotes - Double Taxation Cannot Always Be Avoided
The following is a quote from the Tax Court regarding the computation of the foreign tax credit limitation: “[Elimination of double taxation is] admittedly the objective of the foreign tax credit. But . . . this objective cannot always be fully achieved.” Perkin-Elmer Corp. v. Commr., 103 T.C. 464 (1994).
Posted on August 30, 2013 in 901 Foreign Tax Credits, Other - Famous Tax Quotes | Permalink
For the 21st week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201321001, PLR 201321004, PLR 201321013, PLR 201321014, PLR 201321015 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201321007 - Applicability of Code §§361 and 897 to a foreign corporation holding United States Real Property Interests ("USRPIs") when such corporation reincoroporates in the...
| | International PLRs of the 20th week of 2013
For the 20th week of 2013, the IRS published the following Chief Counsel Advice and Private Letter Ruling relating to international taxation. CCA 201320014 - IRS denied a U.S. corporation a section 245 dividends received deduction (DRD) from a foreign subsidiary using the substance over form doctrine. PLR 201320017: Taxpayer was permitted to change to the tax book value method of asset valuation for interest expense allocation. Temp. Treas. Reg. §§1.861-8T(c)(2) and 1.861-9T(g)(1)(ii).
Posted on August 25, 2013 in 901 Foreign Tax Credits, Authority - PLRs / CCAs | Permalink
Same Boat But Another Ocean
Continuing our series on Famous Tax Quotes (quotes from court opinions and rulings with language that is colorful or that concisely states an important tax principle) today's tax quote is: If 105% of gross receipts * * * does not satisfy the requirement, then 225% is in the same boat but another ocean. PPL Corp. and Subs. v. Commr., ___ F.3d ___ (3d Cir. 2011)
Posted on February 05, 2012 in 901 Foreign Tax Credits, Other - Famous Tax Quotes | Permalink
In Rev. Rul. 2011-19, the I.R.S. held that the U.K. Remittance Basis Charge (“RBC”) is an income tax for which a credit is allowable under Code §901. The U.K. generally allows individuals who are U.K. residents but who are not domiciled in the United Kingdom (i.e., do not intend to live in the United Kingdom permanently) (non-domiciliaries) to elect each year to be taxed on an alternative basis. The default basis of taxation for non-domiciliaries...
Countries often impose withholding taxes on payments to nonresidents for the performance of services. For instance, the U.S. imposes a 30% withholding tax on certain U.S. source payments, including payments for services, to nonresidents. Code §§871(a)(1)(A) and 881(a)(1). The U.S. withholding tax is only imposed on “U.S. source” income. In the context of services, this generally means services performed in the U.S. Code §861(a)(3) and Treas. Reg. §1.861-4. A number of countries, however, impose withholding...
Earlier this week, President Obama signed into law H.R. 1586. This new law has several important changes to U.S. international tax rules. Today’s blog post discusses the new Section 956 foreign tax credit blending rule. The new law adds a new subsection (subsection (c)) to Code § 960. Under this new rule, if there is a Section 956 inclusion where the U.S. shareholder will be allowed to claim deemed paid foreign tax credits (i.e., a...