• "Sandwich" Structure is a Problem That Calls for Innovative Solutions
  • September 1, 2005 | Author: Jasper L. Cummings
  • Law Firm: Alston & Bird LLP - Raleigh Office
  • This recent ruling illustrates one solution to problems stemming from the all too common occurrence of a "sandwich" in a cross-border holding company structure. The solution did not eliminate the sandwich, but used a section 355 spin-off to enable a foreign shareholder to claim an indirect foreign tax credit for taxes paid by a foreign subsidiary owned by the foreign shareholder's U.S. consolidated group.