“Under the [September 19 Obama Administration] proposal, if a U.S parent transfers an intangible to a controlled foreign corporation (CFC) in circumstances that demonstrate excessive income shifting from the United States, then an amount equal to the excessive return would be treated as subpart F income. This would reduce the deficit by $19 billion over 10 years.” http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/assets/jointcommitteereport.pdf
Great. But what is “excessive”? How much income-shifting is OK? This looks as vague as our old “commensurate with income” standard. (I was always irritated when that standard was labeled “super-royalty.” A salary commensurate with income is not a super-salary.) Strike “excessive” and you’re getting somewhere.
Or “if a U.S parent shifts income from the United States by transferring an intangible to a controlled foreign corporation (CFC), then an amount equal to the income [from that intangible?] would be treated as subpart F income.”
The Center for New Revenue 