O'Keefe, W. Timothy; Beard, Larru H.; O'Keefe, Dana S.
July 1986
FE: The Magazine for Financial Executives;Jul/Aug1986, Vol. 2 Issue 7/8, p33
Trade Publication
The article focuses on issues related to the Foreign Sales Corporation (FSC). The new DISC avoids the complications of the foreign presence requirements associated with FSCs, but it provides tax deferrals rather than tax exemptions. Companies forming the FSC must decide whether to use a large FSC or a small FSC. When asked to compare the small FSC to the old DISC, many small FSC users expected tax benefits to be lower and administrative costs to be higher for the small FSC. The added administrative costs and the offshore requirements make the large FSC uneconomical for many companies.


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