Which of the Following Statements Is FALSE

question 42

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 U.S.tax rate exceeds the combined tax rate on all foreign income,the repatriation of additional income does not incur an additional U.S.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 as deferring capital gains lowers the tax burden imposed by the capital gains tax.

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Definitions:

Appellate Court

A court that has the authority to review and make decisions on cases that have been previously judged in lower courts.

Attorney Presentations

Formal presentations or arguments made by attorneys before a court or tribunal, presenting the facts and points of law relevant to their case.

Warren Court

The period during which Earl Warren served as Chief Justice of the United States Supreme Court, noted for its activism in civil rights and liberties.

Judicial Activism

A judicial philosophy advocating for decisions that go beyond the text of the law, often to effect social change or broader societal benefits.