Case Law Supports That §956 Should Not Apply to a Rev. Proc. 99-32 Deemed Receivable



Lowell Yoder wrote this bylined article discussing when a move of cash from a US corporation to a controlled foreign corporation under Rev. Proc. 99-32 creates an investment in US property under section 956.Two recent section 965 cases hold that such a payable is not treated as an obligation, Mr. Yoder wrote, thus supporting a similar conclusion for purposes of section 956, and supporting that such a payable should not be treated as debt in the first instance.