Assignment 3: International Taxation and Foreign Tax Credits Due Week 8 and worth 280 points

Assume you are a CPA employed as an international tax consultant hired to provide advice to a U.S.-based client expanding operations into foreign markets.

Using the Internet or Strayer Learning Resource Center, conduct research on the tax impacts for U.S. companies expanding into foreign markets.

Write a four to six (4-6) page paper in which you:

Based on your research, analyze the major impact of using a controlled foreign corporation to expand abroad. Examine two (2) methods you would recommend to the client to circumvent the provisions of subpart F to reduce the client's tax liability. Provide at least two (2) examples to support your recommendations. Based on your research, create a plan for the client to take advantage of lower taxes by shifting profits to the tax havens or lower tax countries instead of shifting investments to these countries. Provide a rationale to support your plan. Develop a strategy for the client to convert passive income into active income deferring immediate U.S. taxation until repatriated home based on your research. Provide support for your recommendation. Analyze the available foreign tax credits to your client. Propose at least three (3) tax credits the client could use and the impact of the credits on other foreign loss income. Provide examples to support your recommendations. Use at least four (4) quality resources in