What Are the Consequences of Classification as a Corporate Inversion

question 11

Multiple Choice

What are the consequences of classification as a corporate inversion?

• A)The foreign corporation will be treated as if it is a U.S. corporation.
• B)Foreign tax credits will be disallowed on all future earnings.
• C)The corporation will be subject to a flat 35% tax rate.
• D)If more than half of the shareholders of the new company are the same as the former company, the corporation is considered a U.S. corporation.

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Definitions:

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