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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 300
Experience:  Former IRS Revenue Agent
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Need information on taxes due with respect to a foreign

Customer Question

Need information on taxes due with respect to a foreign corporation, which I hold 100% shares and made a loan to with respect to corporate income and taxes due.
JA: Because laws vary from state to state, could you tell me what state is this in?
Customer: I'm in Delaware but the corporation is in The Bahamas
JA: Have you talked to a lawyer yet?
Customer: No. Just an accountant.
JA: Anything else you think the lawyer should know?
Customer: Yes. The details.
Submitted: 2 months ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 2 months ago.

Dear Customer,

1) In general, loan to and from the shareholder is not a taxable event for the corporation and/or to the shareholder.

2) Would you please provide more details which may make you feel that it may be a taxable event?


Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP