A USParent Corporation That Receives a Dividend from a Wholly-Owned Foreign

question 44

True/False

A U.S.parent corporation that receives a dividend from a wholly-owned foreign subsidiary that pays a 45% income tax to its home country does not owe any U.S.tax on the dividend.

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Definitions:

Fusion

The act or outcome of merging two or more elements into one unified whole.

Ovaries

Female reproductive organs in animals and humans that produce eggs and hormones.

Botanically

Referring to or derived from plants or the science of botany.

Berry

A type of simple fruit with seeds and pulp produced from the ovary of a single flower; the skin is often edible.