ForCo is a Bermuda corporation that has 1000 shares of a single class of stock outstanding, of which 460 shares are owned by USCo, a widely held U.S. corporation, and the remaining 540 shares are owned in equal amounts (i.e. 90 shares each) by six individuals who are U.S. citizens and who are not related to one another by family or business relationships.  Is ForCo a controlled foreign corporation (“CFC”)?  Why or why not?

Question 2

If the facts are the same as in Question 1, but the number of individual shareholders is

reduced from six to five (owning 108 shares each), is ForCo a CFC?  Why or why not?

Question 3

If the facts are the same as in Question 1, except that two of the individual shareholders are husband and wife, is ForCo a CFC?  Why or why not?

Question 4

If the facts are the same as in Question 1, except that two of the individual shareholders are husband and wife and the wife is a non-resident alien (i.e. not a U.S. person), is ForCo a CFC?  Why or why not?

Question 5

If the facts are the same as in Question 1, except that two of the individual shareholders are brother and sister, is ForCo a CFC?  Why or why not?