What Is a Major Limitation to the Apparent Incentive of Tax

question 41

Multiple Choice

What is a major limitation to the apparent incentive of tax holidays?

• A) If an MNC is taxed on worldwide income, it will eventually pay tax on the foreign income when it is repatriated.
• B) Income earned by multinational corporations must remain in the foreign country offering the tax holiday.
• C) The tax holidays are only available to large multinational corporations of wealthier nations.
• D) Tax holidays are offered only by governments with the ten weakest economies.