What's left of the single economic interest theory?
Article Abstract:
The IRS' Revenue Ruling 93-4 classifies foreign entities as corporations with ownership located in the US. The ruling alters the previous tendency, set forth in Ruling 77-214, to view foreign entities as part of a partnership whose owners had a shared economic interest. This change has implications regarding double taxation and dissolution, and subjects foreign entities to US tax provisions and transfer restrictions. However, entities can qualify as partnerships if they carefully plan to not meet all the qualifications of a corporation set forth in Ruling 93-4.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
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Equity index swaps: an uncertain future
Article Abstract:
Equity index swaps have provided investors with a means of avoiding withholding taxes. Recent IRS rulings concerning notional principal contracts and cross-border securities loans have dealt principally with the timing and character of payments. Though these rulings express concern with the withholding status of index swaps, they have not addressed it directly. There are numerous loopholes here which regulations must fill to avoid the existence of investment alternatives free of withholding tax.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
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The Cottage Savings regulations
Article Abstract:
The IRS has issued proposed regulations for original issue discount (OID) and also for IRC section 1001 covering modification of debt instruments. The rules cover deemed exchanges, interest rates, payments, security, obligor, instrument nature, tax consequences, public trades, safe harbors and bond premiums. Some unfinished issues exist such as a definition of 'material.'
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
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- Abstracts: Playing by the same rules; measure confirms that federal prosecutors are not immune to state professional conduct regulations
- Abstracts: Adding an economic reactionary to the Supreme Court: high costs of the Ginsburg nomination. Corporate 'bloat' and U.S. competitiveness: 'monopoly is the great enemy of good management.'
- Abstracts: Franchisor's use of RICO: the best defense might be a good offense. Duty of good faith and fair dealing
- Abstracts: The Service seeks increased enforcement of tax-sheltered annuities. Plan distributions to nonresident aliens
- Abstracts: Final regulations under section 382 clarify taxation of options. Proposed regulations narrow consistency rules on stock and asset acquisitions.