What Is the "Safe Harbor Rule

question 47

Multiple Choice

What is the "Safe Harbor Rule?"

• A) If a foreign tax rate is 90% or more of the U.S. corporate tax rate, no part of a controlled foreign corporation's income is considered Subpart F income.
• B) This is a guideline issued by the OEDC that encourages developed countries to open branches in underdeveloped countries.
• C) If a controlled foreign corporation's Subpart F income is less than 10% of its total income, it will not be taxed currently by the U.S. government.
• D) If a controlled foreign corporation's Subpart F income is less than 10% of its total income, it will not be taxed until dividends are received by the parent.

---

Definitions:

Smoking Rates

The prevalence of tobacco use among a population, often measured as the percentage of individuals who smoke.

Access To Health Care

Access to health care entails the ease with which individuals can obtain necessary medical services, including the availability of facilities, medical personnel, and affordability of care.

Life Expectancy

The average number of years that a person is expected to live, based on statistical analysis of current mortality rates.

Health Expectancy

An estimate of the number of years a person can expect to live in a relatively healthy state, free of major diseases or disabilities.