Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) Other benefits from deferral arise because the firm effectively gains a real option to repatriate income at times when repatriation might be cheaper.
• B) By pooling foreign income, the firm effectively pays the combined tax rate on all foreign income.
• C) In years in which the Canadian tax rate exceeds the combined tax rate on all foreign income, the repatriation of additional income does not incur an additional Canadian tax liability, so the earnings can be repatriated tax-free.
• D) Deferring repatriation of earnings lowers the overall tax burden in much the same way that deferring capital gains lowers the tax burden imposed by the capital gains tax.

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Definitions:

Plaintiff

The person or party who initiates a lawsuit against another in a court of law.

Defendant

A person, business, or organization being charged or sued in a legal court.

Monetary Compensation

Monetary compensation is financial payment received by an individual or group for services rendered, losses incurred, or as a reward for performance.

Service of Process

The procedure by which a party to a legal action gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body.