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.

---

Definitions:

Rural Areas

Regions located outside towns and cities, often characterized by lower population density and primarily agricultural land use.

Peer-To-Peer Processing

A distributed network architecture where each participant (peer) has equivalent capabilities and responsibilities, differing from traditional client-server models.

Fat Clients

Fat clients, also known as thick clients, are computers in a client-server architecture that handle the bulk of data processing operations themselves, rather than relying on a server.

Processing Power

Describes the capability of a computer or processor to perform operations, often measured in terms of speed and efficiency in executing tasks.