Relief from Multiple Taxation of Parent and Subsidiary Income May

question 45

Multiple Choice

Relief from multiple taxation of parent and subsidiary income may be found in tax treaties that allow:

• A)subsidiaries to avoid paying taxes on income that will eventually be passed on to the parent.
• B)the parent to exempt from its gross income any dividends received from foreign subsidiaries.
• C)the parent to exclude from income all dividends received relative to foreign operations.
• D)the parent to take a tax credit against the tax it owes for the taxes paid by the subsidiary in the country where it is located.

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