OrbitaxJapanese Supreme Court decision – Japanese parent company cannot deduct losses of Panamanian CFC
|Approved Changes|Japan-Panama
On 28 September 2007, the Japanese Supreme Court delivered its decision that the CFC rule disallows Japanese parent companies from deducting losses incurred by controlled foreign companies in the calculation of the parent company's taxable income.
In the case at hand, the Japanese parent company P's Panamanian subsidiary S was considered to be a CFC of P …
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