### Question
How does the law define controlled group of corporations?


### Answer
Under *26 U.S.C. § 927*, **controlled group of corporations** is defined as:

> given to such term by section 1563(a), except that—


(A) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears therein, and


(B) section 1563(b) shall not apply.

#### Citation:
  - *26 U.S.C. § 927*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart C-Taxation of Foreign Sales Corporations**

