A foreign corporation in which more than 50% of the total combined voting power of its stock or the total value of its stock is owned by "United States Shareholders" (defined as a United States person (IRC § 957(c)) who owns 10% or more of the total combined voting power of foreign corporation's stock (IRC §§ 951(b) and 957(a)).
A United States person generally means a citizen or resident of the US, a domestic partnership, a domestic corporation, an estate whose income is subject to US federal income tax regardless of its source or a trust if the US can exercise primary supervision over the trust's administration and one or more United States persons are authorized to control all substantial decisions of the trust.
A company that is:
• Resident outside the UK;
• Controlled by persons resident in the UK; and
• Subject to a lower level of taxation in the territory in which it is resident.
Set out in Chapter IV of Part XVII of the Income and Corporation Taxes Act 1988 (ICTA), the CFC rules prevent UK companies from avoiding tax in the UK by diverting income to subsidiaries located in tax havens or countries with preferential tax regimes. HM Revenue & Customs can assess a UK resident company on profits of a CFC. There are a number of exemptions. No assessment can be made if, for example, an acceptable distribution policy is pursued under which a sufficient percentage of the foreign profits is being received (and taxed) in the UK or the CFC undertakes certain exempt activities (sections 747-756, ICTA).
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

  • CFC — CFC, cfc, or Cfc may stand for: *Chlorofluorocarbon : a class of chemical compounds that deplete ozone. *Cardiofaciocutaneous Syndrome : a rare and serious genetic disorder. *Canadian Film Centre : institution for advanced training in film,… …   Wikipedia

  • CFC — ist eine Abkürzung für: ColdFusion Component, eine objektorientierte Erweiterung der Skriptsprache ColdFusion Celtic Football Club, schottischer Fußballverein (bekannt als: „Celtic Glasgow“) Certified Financial Consultant Chelsea Football Club,… …   Deutsch Wikipedia

  • CfC — ist eine Abkürzung für: CFC CarFilmComponents Unternehmen; einer der Weltmarktführer im Bereich passgenauer Tönungs und UV Schutzfolien. ColdFusion Component, eine objektorientierte Erweiterung der Skriptsprache ColdFusion Celtic Football Club,… …   Deutsch Wikipedia

  • CFC — abbrev. chlorofluorocarbon * * * CFC abbr. chlorofluorocarbon. * * * …   Universalium

  • CFC — Abreviatura de clorhidrato de fenciclidina. Diccionario Mosby Medicina, Enfermería y Ciencias de la Salud, Ediciones Hancourt, S.A. 1999 …   Diccionario médico

  • CFC — simb. TS chim. clorofluorocarburo …   Dizionario italiano

  • CFC — [ˌsi: ef ˈsi:] n chlorofluorocarbon a gas used in ↑fridges and ↑aerosol cans, believed to be responsible for damaging the ↑ozone layer …   Dictionary of contemporary English

  • CFC — [ ,si ef si ] noun count chlorofluorocarbon: a gas used in REFRIGERATORS and in some AEROSOL containers. CFCs are not often used anymore because they damage the OZONE LAYER of the Earth s atmosphere …   Usage of the words and phrases in modern English

  • CFC — (chlorofluorocarbon) type of greenhouse gas, one of the gases thought to be responsible for the hole in the ozone layer (Ecology) …   English contemporary dictionary

  • CFC — ► ABBREVIATION ▪ chlorofluorocarbon, any of a class of synthetic compounds of carbon, hydrogen, chlorine, and fluorine, used as refrigerants and aerosol propellants and harmful to the ozone layer …   English terms dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.