controlled foreign corporation
Tax. A foreign corporation in which more than 50% of the stock is owned by U.S. citizens who each own 10% or more of the voting stock.? These shareholders (known as U.S. shareholders) are required to report their pro rata share of certain passive income of the corporation. ¡ª Abbr. CFC. IRC (26 USCA) ¡ì¡ì 951¨C964. [Cases: Internal Revenue 4119. C.J.S. Internal Revenue ¡ì 484.]
