EFTA01075338Set 9
2013-05-2140p19,322w
Entities With No Declared Tax Jurisdiction 5
3. Cost Sharing Agreement 5
4. Circumventing Subpart F 5
Recommendations:
1. Strengthen Section 482 6
2. Reform Check-the-Box and Look ... Shell Corporations 9
D. Piercing the Veil — Instrumentality of the Parent 10
E. Subpart F To Prevent Tax Haven Abuse
F. Subpart F To Tax Current Income 12
G. Check ... weaknesses and loopholes in certain U.S. tax code provisions, including transfer pricing, Subpart
F, and related regulations, that enable multinational corporations to avoid U.S. taxes.
A. Subcommittee Investigation
https://www.justice.gov/epstein/files/DataSet%209/EFTA01075338.pdf
EFTA02521579Set 11
2013-01-143p657w
subject to personal income tax in
=he United States on this income under Subpart F. The Subpart F provision= of the Code generally limit the ability of U.S.
shareholders ... gains, rents, royalties, and certain other types of income as p=ovided by the Subpart F
rules. The Subpart F rules to apply to foreign corporations and their shareholders ... must pay tax on his or her share of the CFC's Subpart F income. A =FC, as defined by Code
section 957(a), is any foreign corporation of which
https://www.justice.gov/epstein/files/DataSet%2011/EFTA02521579.pdf
income in an amount equal to that
person's pro rata share of the "subpart F income" of the Issuer for the year. Among other items, and subject to
certain ... exceptions. "subpart F income" includes interest, gains from the sale of securities and income from certain
notional principal contracts (e.g.. swaps and caps). It is likely that substantially ... Issuer's income will be
subpart F income. If more than 70% of the Issuer's income is subpart F income, then 100% of its income will be so
treated
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01376111.pdf
income in an amount equal to that
person's pro rata share of the "subpart F income" of the Issuer for the year. Among other items, and subject to
certain ... exceptions. "subpart F income" includes interest, gains from the sale of securities and income from certain
notional principal contracts (e.g.. swaps and caps). It is likely that substantially ... Issuer's income will be
subpart F income. If more than 70% of the Issuer's income is subpart F income, then 100% of its income will be so
treated
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01365292.pdf
EFTA01111220Set 9
2012-09-282p832w
Page 2 of 2
Form 5471 — Continued - Form 5471 will also report any "Subpart F' income, should there be any.
Subpart F income would be investment income earned ... such as dividends, interest, capital
gains, and royalty income. Subpart F income is taxable income in the year such investment income is
generated. It is not anticipated that there will ... material amount of Subpart F income generated by
Phaidon.
Form 8858 - Information Return of US Persons With Respect to Foreign Disregarded Entities (Annual
- There are a number
https://www.justice.gov/epstein/files/DataSet%209/EFTA01111220.pdf
Alpha Group Capital LLC
"subpart F income" and investments in U.S. property of the Issuer. Among other items, and subject to certain exceptions,
"subpart F income' includes dividends, interest, annuities ... were to be treated as a CFC, predominantly all of its income would be subpart F income. U.S.
Holders should consult their tax advisors regarding these special rules ... holder generally would be taxed on its pro rata share of the Issuer's subpart F income and investments in U.S. property
under the rules described in the preceding paragraph
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01386899.pdf
EFTA01106843Set 9
2013-06-1717p7,366w
before the Tax Court
was whether Textron was taxable on the foreign corporation's subpart F income
during the existence of the voting trust; the Court found that the trust ... ground that the trust was
taxable as the subsidiary's U.S. shareholder, with the subpart F income then
flowing through to Textron. The decision was criticized for its inconsistency with ... other grantor trust authority in Stevens, Matthew A., "A
Grantor Trust Visits Subpart F: Ruminations on Textron v. Commissioner and
other Anomalies", 21 Va. Tax Rev. 507 (2002).
EFTA01106858
POSTF
https://www.justice.gov/epstein/files/DataSet%209/EFTA01106843.pdf
EFTA00292433Set 9
46p28,194w
Notwithstanding the above, however, to the extent that U.S. Partners who are individuals have "Subpart F" income
inclusions described in Sections 951 and 952 of the Code, such income inclusions ... Investments. Pursuant to various "anti-deferral" provisions of the Code (the "Subpart F" and
PFIC provisions), any investments by the Fund in certain foreign corporations may cause a U.S. Partner
https://www.justice.gov/epstein/files/DataSet%209/EFTA00292433.pdf