A ________ Between Two Countries Is an Agreement Specifying Which

question 70

Multiple Choice

A ________ between two countries is an agreement specifying which items of income will be taxed by the authorities of the country where the income is earned.

• A) tax deferral agreement
• B) fixed-rate treaty
• C) tax treaty
• D) free trade agreement

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Definitions:

Gratuitous Promise

A commitment or pledge made without expecting anything in return, often unenforceable in contract law.

Consideration

The benefit, interest, or value that must be exchanged between parties in a contract to make it legally binding.

Liable

Legally responsible for an action or outcome, often involving the obligation to make restitution or compensation.

Voluntary Basis

Participation or action taken by an individual or entity without coercion, typically without expectation of payment.