What Are the Consequences of Classification as a Corporate Inversion

question 42

Multiple Choice

What are the consequences of classification as a corporate inversion?

• A) The foreign corporation will be treated as if it is a U.S. corporation.
• B) The corporation will be subject to a flat 35% tax rate.
• C) Foreign tax credits will be disallowed on all future earnings.
• D) If more than half of the shareholders of the new company are the same as the former company, the corporation is considered a U.S. corporation.

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Definitions:

Periodic Tasks

Tasks that are scheduled to run at regular, predefined intervals within a control system or software environment.

Application

In computing and automation, a program or group of programs designed for end-users to perform a specific task or range of tasks.

Tasks

Activities or operations carried out by a process or machine.