Kontroliuojamų užsienio vienetų pajamų apmokestinimo taisyklės Lietuvoje, Jungtinėje Karalystėje ir Vokietijoje ; Reglamentation of cfc rules in lithuania, junited kingdom and germany

Abstract

This master thesis concerns with Lithuanian CFC rules. The necessity to analyze and improve current Lithuanian CFC legislation first of all is influenced by recent position of European Court of Justice, stated in case Cadbury Schweppes plc & Cadbury Schweppes Overseas Ltd v Commissioners of Inland Revenue, and quite poor practice applying CFC rules in Lithuania. The primary objective of this master thesis is to examine the basic elements of Lithuanian CFC rules and compare them to British and German CFC legislation. There is no purpose to find perfect or the most suitable controlled foreign company legislation for Lithuania, as this would require much wider and deeper analysis of foreign CFC rules and practice, but, regarding ECJ position in above mentioned case, possible alternatives for current Lithuanian CFC rules are examined. The structure of master thesis reflects the basic scheme of CFC rules, common for all countries that apply them: it begins with analysis of the concept of controlled foreign company and exceptions of CFC rules, then the rules for computation of passive income of CFC and apportionment to resident shareholders are assessed, then the taxation of apportioned profits of a CFC and methods of relief to prevent double taxation are discussed. Thesis is concluded by summarizing examined issues and presenting basic guidelines for improvement of current Lithuanian CFC rules.