Controlled Foreign Corporations

Revisitadas à Luz dos Tratados de Bitributação e do Direito Comunitário Europeu

Abstract

The article presents a historical overview of the rules regarding the taxation of profits derived through controlled companies abroad - the so-called Controlled Foreign Corporations (CFC) - and explains the criteria utilized for the definition of the tax regime of such companies. The author analyses the CFC regime in opposition to constitutional principles, taking the brazilian case as an example, and makes an analysis of the compatibility of the CFC regime in view of double tax treaties and the Community Law.