Which Statement Is False with Respect to Tax Treaties

question 47

Multiple Choice

Which statement is false with respect to tax treaties?

• A)There is a $1,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for an individual.
• B)There is a $10,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for a corporation.
• C)Treaties override the Code when in conflict.
• D)Treaties may override a Code section when in conflict.
• E)None of the above.

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Definitions:

Forced-distribution Method

A performance evaluation method where employees are ranked in a distribution curve, forcing managers to identify top, average, and underperforming employees.

Consumer Surplus

The economic benefit or satisfaction received by consumers when they pay a price lower than what they are willing to pay.

Milkshakes

A sweet beverage made by blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount that they actually pay.