Question: "The Importance of Controlled Foreign Corporations" Please respond to the following:
Imagine you are an international tax consultant advising a client on the benefits of establishing a controlled foreign corporation (CFC).
Analyze two (2) categories of foreign base company income.
Next, create a scenario suggesting how a U.S. domiciled multinational entity (MNE) can use a CFC to defer income using one (1) of the categories you analyzed.
Suggest at least two (2) advantages of using a CFC over a branch operation. Provide at least one (1) example for each suggested advantage.