Foreign tax credit, companies operating in the U.S.

Technical topics regarding tax preparation.
#1
Chay  
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I have a client with investments in several mutual funds that report foreign taxes paid to "various" countries. In addition, she has direct investments in multiple Canadian companies that all report taxes withheld on dividends paid (Baytex, Goldcorp, Pengrowth, Penn West, and Suncor).

In addition to this foreign income giving rise to foreign taxes paid, my client has at least nine other investments that appear to give rise to foreign source income, but which don't report any taxes withheld. If she can take the foreign tax credit against all of her foreign income, including income from these sources, far more of the credit would be allowed. However, this particular brokerage doesn't have a detail report on foreign source income, so I wanted to see if anyone else had an opinion on some of these investments and why I should or should not include income from them on Form 1116 with the income from Canadian and "various" sources. I've provided their CUSIP and the country of incorporation of each company below.

The first group consists of ADR and ADS stocks. I am fairly confident that these are inherently foreign source; however, I wonder if there might be some provision that re-sources them to the U.S. because there is no withholding on the dividends:

  • United Kingdom / 252430205 Diaego PLC Sponsored ADR
  • United Kingdom / 37733W105 Glaxosmithkline PLC Sponsored ADR
  • Ireland / 34407D109 Fly Leasing Limited Sponsored ADR
  • Cayman Islands / 585464100 Melco Resorts & Entertainment LTD ADS
The second group consists of companies which are incorporated in a foreign country and have listed themselves on a U.S. stock exchange. I'm not sure if this might affect their sourcing somehow, and my concern about no withholding on dividends applies here as well:

  • Ireland / G7SOOT104 Pentair PLC
  • Curaçao / 806857108 Schlumberger LTD
The final group consists of debt instruments from foreign issuers. I'm not sure if these might get sourced to the U.S. due to some kind of domestic branch nexus or lack of withholding, etc. similar to the above:

  • Canada / 78012KEE3 Royal Bank of Canada 6% Contingent Income Callable
  • Switzerland / 22546VB96 Credit Suisse AG 8% Contingent Income Callable
  • Bermuda / G3933F121 Global Indemnity PLC 7.75% Subordinated Notes
Any input is appreciated.
 

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