Abstract: TAXATION OF FOREIGN SUBSIDIARIES AND CONTROLLED FOREIGN CORPORATIONS
This research explores the taxation of foreign subsidiaries and controlled foreign corporations (CFCs) in Abuja. The study's objectives are to analyze the tax implications for parent companies, assess the compliance challenges, and evaluate strategies for effective tax management. A survey design was used to gather data from 250 tax professionals and corporate executives, calculated using Taro Yamane's formula. A case study of a multinational corporation with subsidiaries in Abuja provided comprehensive insights. The reliability coefficient score was 0.89. Findings indicate that the taxation of foreign subsidiaries and CFCs involves complex regulations, leading to significant compliance challenges. Effective tax planning and seeking professional advice were found to be beneficial strategies. Recommendations include simplifying international tax laws and enhancing training for tax professionals to better manage CFCs and foreign subsidiary taxation.
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