The Australian Taxation Office issued an Interpretative Decision ATO ID 2008/5 which states that the controlled foreign corporation (CFC) provisions will not attribute any income to a resident which does not have any direct or indirect interests in a CFC, even though the resident exercises de-facto control over the CFC. By way of background, a foreign company is a CFC if, inter alia, the company is controlled by five or fewer Australian entities. This test does not require the Australian entities to hold any interests in the CFC and instead deals with "de-facto control". Where a CFC is controlled from...