Under USTax Law, a Parent American Company Can Defer U

question 97

True/False

Under U.S.tax law, a parent American company can defer U.S.taxes paid on the income of its foreign subsidiary as long as that income is retained overseas rather than repatriated to the United States.

---

Definitions:

Levied

Imposed or collected (usually a tax, fine, or other charge) by authority or force.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Luxury Tax

A tax imposed on expensive goods and services considered to be non-essential or luxurious.

Yachts

Luxurious, privately owned boats that are used for leisure or sports.