Which of the Following Tax Benefits Does Not Arise When

question 5

Multiple Choice

Which of the following tax benefits does not arise when a U.S.corporation forms a corporation in Ireland through which to earn business profits in Ireland?

• A) Potential deferral of U.S. tax on income earned by the corporation.
• B) Treaty benefits on cross border payments between the Irish corporation and the U.S. corporation.
• C) Use of transfer pricing to shift income between the United States and Ireland.
• D) Flow-through of losses from the Irish corporation to the tax return of the U.S. corporation.

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Definitions:

Electronically

Refers to processes, transactions, or communications that are conducted using electronic devices or over the internet.

Mandatory

Required or obligatory, implying that it must be done or adhered to without choice.

Stop-payment Order

A request made to a bank by an account holder not to pay out on a check or payment that has been issued but not yet processed.

Reimburse

To pay back or compensate someone for expenses they have incurred.