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Is Incorporation The Solution To The Enigma Of Corporate Tax Residency For International Tax Purposes?, Charles Edward Andrew Lincoln Iv

Texas A&M Law Review

Incorporation of a company for testing residency—if applied uniformly—is likely the best and most accurate way to reflect corporate residency for tax purposes. However, it does not always reflect economic reality. There is not a consensus on what the best approach is. The Organization for Economic Cooperation and Development (“OECD”) countries overwhelmingly use three tests for residency: incorporation, central management and control, and domicile. Indeed, a court in the United States or other jurisdictions may often ask if tax-avoidance motives exist when incorporation occurs in one jurisdiction and central management and control occurs in another.

This Article follows the 2017 …