excludes Foreign Sales Corporations
(FSCs) and Interest- Charge
Complex rules that define and govern foreign personal holding companies, controlled foreign corporations, passive foreign investment companies and foreign sales corporations
have been adopted to prevent the avoidance or significant deferral of U.S.
(2) In United States--Tax Treatment for "Foreign Sales Corporations
," Second Recourse to Article 21.5 of the DSU by the European Communities (US-FSC), (3) the DSB upheld the findings of the Panel and Appellate Body that the United States created a form of prohibited subsidy in continued violation of the SCM Agreement and Article 21.5 of the DSU in its tax treatment of foreign sales corporations
still has failed to carry out its recommendations regarding Foreign Sales Corporations
(FACS) and Extraterritorial Income Exclusions (EGIS).
The US export subsidies - provided under the 1984 Foreign Sales Corporations
Act - have given US exports estimated annual benefits of this amount.
law that allowed foreign sales corporations
(FSCs) to benefit from export subsidies totaling more than $4 billion yearly since 2000.
Part of the difficulties in the negotiations is that Europe is trying to reach agreement on two issues that were not included as part of the January agreement: Japanese aid for development of the 787 and the Foreign Sales Corporations
that US companies use to lower their taxes.
THE EUROPEAN Union (EU) has lifted 14% retaliatory duties on some US meat exports after Congress abolished foreign sales corporations
giving illegal tax breaks to US exporters.
Likewise, 26 of the 59 corporations that report having a subsidiary in a tax haven country report that at least one of these subsidiaries is a Foreign Sales Corporation
. Four of these 26 contractors also report having additional Foreign Sales Corporations
in countries other than tax havens.
* Domestic international sales corporations (DISCs) and foreign sales corporations
Foreign Sales Corporations
reached a head in September after a WTO panel for the second time found that the U.S.
2002-37 if it has a significant interest in certain passthrough entities as of the end of the short period resulting from the proposed change, or if it is a shareholder in certain foreign sales corporations
(FSCs) or interest-charge domestic international sales corporations (IC-DISCs).