DUAL RESIDENT CORPORATIONS It is possible that a corporation formed under US corporate law can be continued under Canadian corporate law but not discontinued under the US corporate law.
A domestic use of a DCL occurs "when the dual consolidated loss is made available to offset, directly or indirectly, the income of a domestic affiliate (other than the dual resident corporation or separate unit that, in each case, incurred the dual consolidated loss) in the taxable year in which the dual consolidated loss is recognized, or in any other taxable year," even if the DCL does not offset foreign taxable income and even if the foreign taxable income is or will not be subject to U.
13) The elegance of this rule is illustrated by simple contrast to the general rule contained in the 1992 Regulations, which accomplishes essentially the same result: Except as otherwise provided in this section, a dual consolidated loss of a dual resident corporation cannot offset the taxable income of any domestic affiliate in the taxable year in which the loss is recognized or in any other taxable year, regardless of whether the loss offsets income of another person under the income tax laws of a foreign country and regardless of whether the income that the loss may offset in the foreign country is, has been, or will be subject to tax in the United States.
The regulations also broaden the definition of dual resident corporation to include certain partnerships and branches of domestic corporations that are "separate units.
1503-2(c)(5)(i) to mean the net operating loss of a domestic corporation incurred in a year in which the corporation is a dual resident corporation (DRC).
ECJ to rule on German seat-of-management rule Prior articles have described the seat-of-management rule (Sitztheorie) under German choice of law doctrine and the impact of this rule on dual resident corporations (DRCs).
It recommended that the rules clarify that a domestic corporation will be considered a dual resident corporation only if it is itself subject to income tax in the foreign country, either directly or because, under foreign law, it is severally liable as a member of a foreign consolidated or combined tax return.
