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Article: TOP Ships Announces Likely PFIC Status for 2009.
- Article from:
- Economics Week
- Article date:
- November 6, 2009
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TOP Ships Inc. (NASDAQ: TOPS) (the "Company") announced that it expects to be treated as a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for 2009.
Generally, a foreign corporation will be treated as a PFIC for U.S. federal income tax purposes if either (1) at least 75% of its gross income for any taxable year consists of certain types of "passive income" or (2) at least 50% of the average value of the corporation's assets produce or are held for the production of those types of "passive income." Based on the application of these criteria, management believes that the Company and certain of its subsidiaries will likely be ...