Match the definition with the correct term. Not all of the terms have a match. A definition can be used more than once.
-A non-U.S. subsidiary whose income may be taxed to the U.S. parent before repatriation.

Question

Quizplus · Accepted Answer

Controlled foreign corporations (CFCs) are non-U.S. companies controlled by U.S. shareholders, and their income can be taxed to the U.S. parent before it is actually repatriated. This is to prevent U.S. entities from deferring U.S. tax by holding profits in foreign subsidiaries.

Match the Definition with the Correct Term