• Return to previous page.

Text size:

Printable Version

New BNA Tax Portfolio Discusses Indirect Foreign Tax Credits

NEWS RELEASE

Contacts:
Mark Carrington
(202) 530-1728

Washington, DC (May 18, 2007) – BNA®, publisher of the authoritative and universally recognized Tax Management Portfolios, has released the latest addition to the Foreign Income Series. Portfolio 902-2nd, Indirect Foreign Tax Credits, contains a detailed analysis of §902, under which a domestic corporation may be deemed to have paid, for purposes of the §901 foreign tax credit, foreign income taxes paid by a foreign corporation from which the domestic corporate shareholder receives a dividend. The Portfolio also contains a detailed analysis of §960, under which a domestic corporation that is taxed on earnings and profits of a controlled foreign corporation under §951 may be deemed to have paid foreign income taxes paid by the foreign corporation.

The Portfolio examines special situations in which an indirect credit may arise: when a U.S. shareholder sells stock in a controlled foreign corporation and the gain is re-characterized as a dividend under §1248; when a U.S. shareholder is deemed to receive a dividend in a reorganization or other transaction covered by §367(b); when a U.S. shareholder is taxed on income of a passive foreign investment company; and when a U.S. shareholder receives certain distributions from a DISC or FSC. The Portfolio also examines the interrelationship of indirect credit rules and the §904 limitation on the foreign tax credit. In addition, the Portfolio examines the rules of §78, and the effect on indirect foreign tax credits of § 482 adjustments, refunds and redeterminations of foreign tax.

This Portfolio may be cited as BNA Tax Portfolio 902-2nd, Carr and Moetell. Indirect Foreign Tax Credits.

John L. Carr, Jr. is a tax partner at Winston & Strawn’s Washington D.C. office.  Mr. Carr has more than 20 years of experience representing foreign banks and other clients in tax planning, such as structured cross border financing, advance price agreements with the Internal Revenue Service, and tax controversy matters.

Michael C. Moetell is a tax partner at Winston & Strawn’s New York office and concentrates his practice in international tax matters. Mr. Moetell has extensive experience representing foreign financial institutions and other business enterprises in the tax treatment of their U.S. activities, including tax consequences of mergers and acquisitions, tax treaty issues, and expense allocation issues.

# # #

About BNA®
BNA is a leading publisher of print and electronic news, analysis, and reference products, including the recently launched Accounting Policy & Practice Series.  BNA publications intensely cover legal and regulatory developments for professionals in business and government. BNA is the oldest wholly employee-owned company in the United States, and produces more than 350 news and information services — including Daily Labor Report and Daily Tax Report — widely respected for comprehensive and objective reporting and analysis.

For more information, contact Mark Carrington, BNA Tax & Accounting, at 202.530.1728.