The Definition of Control in Controlled Foreign Corporation Rules and Double Taxation: Lessons from the Brazilian, US, EU and OECD Controlled Foreign Corporation Rules

Abstract

In controlled foreign corporation rules, the adoption of the term “participation” both in the definition of control and in the ratable income inclusion rule may cause double taxation. The author considers these rules, and suggests a narrow interpretation of the term “participation” used in the ratable income inclusion rule as “entitlement to profits”.