Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Law
Wither Firpta, Fred B. Brown
Wither Firpta, Fred B. Brown
All Faculty Scholarship
Under FIRPTA, foreign persons are subject to U.S. tax on dispositions of directly held interests in U.S. real property as well as on dispositions of stock in certain U.S. real property holding corporations. Congress enacted FIRPTA to combat several techniques used by foreign persons to avoid U.S. tax on dispositions of U.S. real estate. However, since FIRPTA's enactment, changes in the tax law would defeat these tax avoidance techniques. Consequently, this raises the issue of whether FIRPTA continues to make sense as a policy matter.
This article suggests that the repeal of portions of FIRPTA may be in order and …
Federal Income Taxation Of U.S. Branches Of Foreign Corporations: Separate Entity Or Separate Rules?, Fred B. Brown
Federal Income Taxation Of U.S. Branches Of Foreign Corporations: Separate Entity Or Separate Rules?, Fred B. Brown
All Faculty Scholarship
Foreign corporations conduct U.S. business activities either through U.S. subsidiaries or U.S. branches. A U.S. subsidiary of a foreign corporation generally is taxed as any other domestic corporation, that is, as a separate taxable entity apart from its foreign parent. In contrast, a U.S. branch of a foreign corporation is not treated as a separate taxable entity; instead, the Code and regulations employ a set of special rules that allocate and apportion to the U.S. branch a portion of the foreign corporation's income in order to determine the net income subject to U.S. tax.
The rules used for taxing U.S. …