US Court of Appeals disallows favourable dividend treatment for Subpart F income
The US Tax Court of Appeals for the Fifth Circuit has held that taxpayers' Subpart F income attributable to earnings of a controlled foreign corporation (CFC) invested in US property should be taxed as ordinary income, rather than as qualified dividend income eligible for reduced rates of taxation (Osvaldo Rodriguez and Ana M. Rodriguez v. Commissioner of Internal Revenue, No. 12-60533, 5 July 201…
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