Which of the Following Tax Benefits Does Not Arise When

question 5

Multiple Choice

Which of the following tax benefits does not arise when a U.S.corporation forms a corporation in Ireland through which to earn business profits in Ireland?

• A) Potential deferral of U.S. tax on income earned by the corporation.
• B) Treaty benefits on cross border payments between the Irish corporation and the U.S. corporation.
• C) Use of transfer pricing to shift income between the United States and Ireland.
• D) Flow-through of losses from the Irish corporation to the tax return of the U.S. corporation.

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Definitions:

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin.

Systole

Contractile phase of the cardiac cycle.

Diastole

Relaxation phase of the cardiac cycle.

Cardiac Cycle

The sequence of events that occurs in the heart during one heartbeat, including contraction (systole) and relaxation (diastole) of the atria and ventricles.