The introduction of controlled foreign company (CFC) rules has come in two "waves". The "pre-globalization wave" saw CFC rules introduced in the United States in 1962 and in Canada, France, Germany, Japan and the United Kingdom in the 1970s and early 1980s. This article reconsiders the design of Australia's CFC rules in the context of the global economy. The article examines the key design features of Australia's CFC rules to see whether they effectively counter the use of tax havens and preferential tax regimes but, at the same time, do not unnecessarily inhibit a country's multinationals from competing in the global economy. The article is written from the perspective of Australia (where there has been much debate over the last few years on the design of CFC rules), but many of the issues raised are of general application.