In Which of the Following Cases Are the U

question 94

Multiple Choice

In which of the following cases are the U.S.shareholders in a controlled foreign corporation (CFC) deferring U.S.tax on the CFC's income?

• A)The CFC operates in a jurisdiction with a tax rate higher than the U.S.rate,has no subpart F income,and pays no dividends.
• B)The CFC operates in a jurisdiction with a tax rate lower than the U.S.rate,has no subpart F income,and pays no dividends.
• C)The CFC operates in a jurisdiction with a tax rate lower than the U.S.rate,and 100% of the CFC's income is subpart F income.
• D)The CFC operates in a jurisdiction with a tax rate higher than the U.S.rate,and distributes 100% of after-tax earnings as dividends.