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.

---

Definitions:

Virus

A small infectious agent that replicates only inside the living cells of an organism, potentially causing disease.

Cognitive Abilities

The mental capabilities that involve the acquisition, processing, and use of knowledge, such as thinking, reasoning, and memory.

Males

The sex that is characterized by the production of small mobile sperm, typically having XY chromosomes in mammals.

Females

Refers to the sex or gender that is typically characterized by the ability to produce ova or eggs, and in mammalian species, usually possesses two X chromosomes.