Controlled Group?

[Guest ANON-MD]

I am relatively inexperienced in the benefits area and I'm hoping someone here can help educate me on this specific scenario.

If Mr. Smith owns 80% of a publicly traded company, owns 100% of a not for profit organization, and owns 100% of a privately held company, does this form a controlled group? The entities are in seperate lines of business and do not transact with one another.

It doesnt seem right that they would be in a controlle group, but I can't find the legal provision that would expempt them from the 80% rule. Then again, I am a newb to this area.

Another scenario....A holding company with 3 subsidiaries. Holding is a US publicly traded company, the 3 subsidiaries are in US, Japan & UK. No one is on the payroll for the holding company, hence no benefit or retirement/pension plan. Is it technically correct to say that there is controlled group here? Also, do the rules for a controlled group go beyond US borders?

Thanks for any help provided.

[Guest Sieve]

I don't know how an individual owns 100% of a tax-exempt (private foundation?), but the 3 entities in your first situation clearly comprise a controlled group. Business type makes no difference (although the consequences of a controlled group may be eliminated if the entities can be treated as separate lines of business (SLOBs - each must have at least 50 employees. among other things)).

The controlled group rules carry into the realm of non-US entitities--but, again, the pension complications can be eliminated through application of the non-resident alien rules & the SLOB rules.