Which of the Following Statements Is FALSE

question 36

Multiple Choice

Which of the following statements is FALSE?

• A)When the foreign tax rate is less than the U.S.tax rate,deferral can provide significant benefits.
• B)The U.S.tax liability is not incurred until the profits are brought back home if the foreign operation is set up as a foreign branch rather than as a separately incorporated subsidiary.
• C)If a company chooses not to repatriate £12.5 million in pre-tax earnings,for example,it effectively reinvests those earnings abroad and defers its U.S.tax liability.
• D)When the foreign tax rates exceed the U.S.tax rates,there are no benefits to deferral because in such a case there is no additional U.S.tax liability.

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Definitions:

Follow-Up

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The process of overcoming the dependence on alcohol and rebuilding one's life.

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The practice of refraining from indulging in certain activities or behaviors, especially those considered harmful or addictive, such as sexual activity, alcohol, and drugs.

Family Preservation

A social service philosophy and practice aimed at keeping families together, preventing unnecessary placement of children into foster care by offering supports and interventions.