Which of the Following Statements Is False

question 4

Multiple Choice

Which of the following statements is false?

• A) When the foreign tax rate is less than the Canadian tax rate, deferral can provide significant benefits.
• B) The Canadian 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 Canadian tax liability.
• D) When the foreign tax rates exceed the Canadian tax rates, there are no benefits to deferral because in such a case there is no additional Canadian tax liability.

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Definitions:

Schizophrenic Disorder

A mental health disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnection from reality.

Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry, fear, or anxiety that interferes with daily activities.

Positive Symptoms

In psychology, symptoms that involve the presence of abnormal behaviors or experiences, such as hallucinations or delusions, often seen in schizophrenia.

Schizophrenia

A severe mental disorder characterized by distortions in thought, perception, emotions, language, sense of self, and behavior.