Concept and Implementation of CFC Legislation

S. VIIPreface

This volume in the “Series on International Tax Law” includes the master’s theses of the part-time students attending the 2019-2021 class of the postgraduate LL.M. programme in International Tax Law at WU (Vienna University of Economics and Business). The general topic for this year was “Concept and Implementation of CFC legislation”. In the last couple of years, aggressive tax planning leading to tax base erosion has been in the focus of many academic and tax policy related debates. One focal point has been the taxable treatment of controlled foreign companies (CFC) established by resident taxpayers to shift income outside the country of residence and to achieve long-term deferral of taxation. In 1962, the first CFC rules were enacted in the United States in an attempt to effectively address the potential risks of profit shifting through CFCs. Since then, a number of jurisdictions have implemented similar rules. However, the rules have proven to be ineffective. As a result of the OECD/G-20 Base Erosion and Profit Shifting (BEPS) Project as part of Action Plan 3, recommendations were made regarding a more efficient design of domestic CFC rules. At the EU level, agreement wit...