In Which of the Following Cases Are the U

question 6

Multiple Choice

In which of the following cases are the U.S. shareholders in a controlled foreign corporation (CFC) avoiding U.S. tax on the CFC's income?

• A) The CFC operates in a jurisdiction with a tax rate lower than the U.S. rate, has no subpart F income, and 100% of its income is global intangible low-taxed income.
• B) The CFC operates in a jurisdiction with a tax rate lower than the U.S. rate, has no subpart F or global intangible low-taxed income, and pays no dividends.
• C) The CFC operates in a jurisdiction with a tax rate lower than the U.S. rate, and 100% of the CFC's income is subpart F income.
• D) The CFC operates in a jurisdiction with a tax rate lower than the U.S. rate; 50% of its income is subpart F income and 50% is global intangible low-taxed income.

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Definitions:

Mask

A method or technique used in computing and digital communications to selectively enable or disable certain bits of data or signals based on a pattern or sequence.

Data

Information that has been translated into a form that is efficient for movement or processing, integral to computer operations and analysis.

LES Instruction

A programming instruction used to compare if one value is less than another, often used in control and logic applications.

Register

A small, high-speed storage location within a computer or other digital processor used to hold temporary data or instructions.