Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) If the Canadian tax rate exceeds the combined tax rate on all foreign income, it is valid to assume that the firm pays the same tax rate on all income no matter where it is earned.
• B) Firms can lower their taxes by pooling multiple foreign projects and accelerating the repatriation of earnings.
• C) Under Canadian tax law, multinational corporations may use any excess tax credits generated in high-tax foreign countries to offset their net Canadian tax liabilities on earnings in low-tax foreign countries.
• D) If the foreign tax rate exceeds the Canadian tax rate, because the Canadian tax credit exceeds the amount of Canadian taxes owed, no tax is owed in Canada.

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Definitions:

Young Adults

Individuals in their late teens to early thirties, a period marked by exploration, the establishment of personal and professional identities, and transition into more adult responsibilities.

United States

A country located in North America, known for its diverse culture and strong influence in global affairs.

Safe Haven

One of the three purposes of the attachment system. Bonds between infant and caregiver make the caregiver a source of comfort when distressed.

Secure Base

One of the three purposes of the attachment system. The bond between infant and caregiver provides the infant a protective resource as she develops and learns.