Which of the Following Tax Benefits Does Not Arise When

question 15

Multiple Choice

Which of the following tax benefits does not arise when a U.S. corporation forms a corporation in Ireland through which to earn business profits in Ireland?

• A) Flow-through of losses from the Irish corporation to the tax return of the U.S. corporation.
• B) Potential deferral of U.S. tax on income earned by the corporation.
• C) Treaty benefits on cross border payments between the Irish corporation and the U.S. corporation.
• D) Use of transfer pricing to shift income between the United States and Ireland.

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Definitions:

Markets For Factors

Markets where factors of production like land, labor, and capital are bought and sold.

Labor Exchange

The process whereby workers and employers connect or interact to facilitate employment, often mediated by a platform or agency.

Income

Monetary gains received consistently from either occupational efforts or investments.

Flowers

The reproductive structure found in flowering plants, responsible for the production of seeds and propagation of the species.