Which of the Following Statements Best Describes the Primary Purpose

question 12

Multiple Choice

Which of the following statements best describes the primary purpose of the Subpart F income provisions?

• A) They allow for a deferral of non-U.S.-source income from U.S. taxation.
• B) They provide certainty as to the U.S. income tax treatment of cross-border transactions.
• C) They prevent shifting of income from the U.S. to high-tax non-U.S. jurisdictions.
• D) They prevent shifting of income from the U.S. to low-tax non-U.S. jurisdictions.

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Definitions:

Disaster Relief

Assistance provided to individuals, communities, and countries in the aftermath of natural or man-made disasters to help with recovery and rebuilding efforts.

Minority-owned Suppliers

Minority-owned suppliers are businesses that are at least 51% owned and operated by individuals from minority groups.

Women-owned Suppliers

Businesses that are at least 51% owned, controlled, and operated by one or more women.

Federal Government Regulations

Rules and laws implemented by the national government to control or manage various activities and industries across the country.