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:

Savings

The allocation of money that is not spent on consumption in order to be used for future expenses or investments.

Relearn

The process of learning material or skills that one had learned previously but has forgotten or lost proficiency in.

Implicit Memory

A kind of enduring memory that allows us to execute activities without the active realization of past encounters.

Declarative Memory

A type of long-term memory that involves the conscious recall of facts and events.