Which of the Following Statements Regarding the Taxation of International

question 19

Multiple Choice

Which of the following statements regarding the taxation of international corporate profits is FALSE?

• A)Prior to the Tax Cuts & Jobs Act of 2017,U.S.tax policy required U.S.corporations to pay taxes on their foreign income at the same rate as profits earned in the United States.
• B)The home government gets an opportunity to tax the income from a foreign project to the domestic firm.
• C)The general international arrangement prevailing with respect to taxation of corporate profits is that the home country gets the first opportunity to tax income.
• D)The home government must establish a tax policy specifying its treatment of foreign income and foreign taxes paid on that income.

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Definitions:

Tethered

To be tied or anchored to a particular point or place, restricting freedom of movement.

Learned Association

A psychological principle where an individual connects two stimuli or a stimulus and a behavior through repeated exposure.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years of age, where infants learn about the world through their sensory impressions and motor activities.

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children (ages 7-12 approximately) gain a better understanding of mental operations, leading to more logical thoughts about concrete events.