If the Expansion Is Done Through a Branch Location in a Permanent

question 6

Multiple Choice

If the expansion is done through a branch location in a permanent establishment run by personnel from Saskatchewan, which of the following is incorrect?

• A)The profits belong to the Nova Scotia corporation.
• B)The Saskatchewan tax rate will apply.
• C)The branch profits for tax purposes may potentially be more than actually earned at the branch.
• D)The actual branch profits will be taxed as a separate entity.

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Definitions:

Exocrine

Pertains to glands that release their secretions through ducts onto an epithelial surface, such as sweat glands.

Goblet Cells

Specialized epithelial cells that secrete mucus to lubricate and protect the mucous membranes of the intestines and respiratory tract.

Serous Fluid

Fluid similar to lymph that is produced by and covers serous membrane; it lubricates the serous membrane.

Mucus

A slippery secretion produced by mucous membranes, serving to protect and lubricate surfaces.